SBI plans to launch support for Ether and XRP loans in the near future.
Japanese financial giant SBI Group is launching a crypto lending service through its crypto subsidiary, SBI VC Trade.
According to the official announcement on November 24, the new crypto lending platform will allow users to lend crypts to SBI and earn interest at a 1% tax-inclusive rate.
The new service, called VC Trade Lending, will initially support the largest cryptomoeda, Bitcoin System, with plans to add support for Ether (ETH) and XRP. The minimum loan amount is 0.1 BTC, or $1,840 at the time of publication, while the maximum amount is limited to 5 BTC, or $92,000.
SBI said that VC Trade Lending will not have account management fees or annual membership fees. The service will also not charge any fees for deposits made in Japanese yen or crypto currency, but it does charge a fee for withdrawals in yen.
SBI is a major Japanese financial institution involved in the cryptomotic industry. In early October 2020, SBI’s foreign exchange and derivatives arm, SBI Liquidity Market, acquired TaoTao, a 40% owned crypto exchange from Yahoo Japan’s YJFX. The company also manages its own crypto business through its subsidiary SBI VC Trade.
SBI is also an important partner of Ripple, the financial products company of XRP, the world’s fourth largest market capitalization cryptomeda. In late October 2020, SBI CEO Yoshitaka Kitao said Ripple is likely to move to Japan should it choose to leave the United States.