CryptoLaw founder John Deaton, a well-known crypto enthusiast and XRP endorser, shared his opinion on the latest news of the possible purchase by Sumitomo Mitsui Financial Group Corporation (SMFG) of a stake in another major Japanese financial company, SBI Holdings. The estimated size of the deal is 590 million dollars.
In Deaton’s opinion, the deal may have a positive long-term impact on Ripple (XRP) because of SBI Holdings’ connections with the crypto company. SBI is a major holder of XRP, and the president of the financial group, Yoshitaka Kitao, is himself a well-known fan of Ripple and even served on the board of the crypto company for two years.
I believe this could be good news for #XRP in the long-term, considering SBI is @Ripple’s largest shareholder and the CEO, @yoshitaka_kitao, is a believer in #XRP, but I defer to @sentosumosaba on what it means, if anything. https://t.co/HQDby3H4AW
— John E Deaton (203K Followers Beware Imposters) (@JohnEDeaton1) June 22, 2022
Are Japanese financial giants preparing for crypto implementation?
First of all, it is worth specifying that the intention of SMFG, whose assets are estimated at 2.2 trillion dollars, to purchase a 10% share in the business of SBI Holdings is aimed at strengthening its position in the securities services market.
The deal, if it is concluded, is a continuation of the 15-year history of cooperation between the two eminent Japanese financial corporations. It is also worth noting that two conglomerates have even had a joint investment in one of Ripple’s products, Ripplenet Moneytap.
Perhaps the deepening relationship between the two Japanese financial giants is the ground preparation for the more widespread adoption and use of blockchain technology and cryptocurrencies in the life of Japan. In this case, the deal looks very logical, given SBI’s position in Ripple (XRP), which can be considered the best in the development and implementation of corporate crypto solutions.