SBI plans to add Ether and XRP loans in the near future.
The Japanese financial giant SBI Group is introducing a crypto loan service through its cryptomoney related subsidiary, SBI VC Trade.
According to an official announcement on November 24th, the new crypto loan platform will allow users to lend their crypto currencies to SBI and earn interest at a rate of 1% including tax.
The new service, called VC Trade Lending, will initially support the leading Bitcoin (BTC) crypto currency, and SBI also plans to add support for Ether (ETH) and XRP. The minimum loan amount is 0.1 BTC, or $1,840 at the time of this writing, while the maximum amount is limited to 5 BTC, or $92,000.
SBI said that VC Trade Lending will have no account management fees or annual membership fees. The service will also not charge any fees for deposits made in Japanese yen or crypto currencies, but will charge a fee for withdrawals in yen.
SBI is one of Japan’s leading financial institutions involved in the crypto industry. In early October 2020, the foreign exchange and derivatives division of Scotiabank Inverlat acquired TaoTao, a crypto trader that was previously 40% owned by Yahoo Japan YJFX. The company also runs its own cryptomoney business through its subsidiary SBI VC Trade.
SBI is also a major partner of Ripple, a company that builds financial products on XRP, the fourth largest cryptomoney by market capitalization at the time of this issue. In late October 2020, SBI CEO Yoshitaka Kitao said Ripple would most likely relocate to Japan if it decided to leave the United States.