Companies must meet the requirements to be admitted as clients of SBI Holdings. Investors who deposit their bitcoins (BTC) on the platform can earn a figure of 1% annually in BTC.
Japan-based finance company SBI Holdings launched the bitcoin (BTC) lending service VC Trade Lending. It is intended for companies in that nation and receives support from cryptocurrencies provided by individual investors in exchange for interest.
SBI will pay 1% annually in bitcoin to those who provide the capital to be loaned. That rate already includes compound interest and all taxes and costs that the service may incur.
The minimum amount to deposit is 0.1 BTC (USD 1,914 at the time of writing this article), and the maximum is 5 BTC (USD 96,027). Even if there is no charge of maintenance fee, the user will pay a commission if they choose to withdraw their money in yen instead of bitcoins.
BTC deposits must happen in periods of 84 days; during that time they cannot suffer any extraction from the platform.
The company reported that the risk of bankruptcy or insolvency on the part of those who receive the loan is almost non-existent. SBI does not hesitate to put itself as a benchmark in security matters.
It ensures that those who apply for a loan must meet the requirements to be accepted as clients and, for this reason, “the service can be used with confidence.”
Even if bitcoin is, at the moment, the only cryptocurrency, SBI is making plans to incorporate altcoins. “We are currently preparing to add cryptocurrencies,” they say, specifically naming Ripple’s XRP and ether (ETH). The CEO of the business group, Yoshitaka Kitao is part of Ripple’s board of directors.
In the previously-mentioned statement, SBI warns potential users of the risks of cryptocurrencies, including the volatility of their price. Besides, they clarify that, in Japan, “crypto-assets are not legal currencies such as the yen and the dollar.”
This company, which began operations in 1999, claims to have developed the world’s first Internet-based financial ecosystem. On their website, they assure that they will promote the Open Alliance initiative in which they will join forces, among others, companies that work with blockchains.
Cryptocurrencies have been part of SBI’s portfolio and investment strategies for years. For example, those who bought shares of the financial group on the Tokyo Stock Market have received dividends in XRP.
Also, the business group is responsible for SBI Mining Chip Co. This subsidiary company specializes in the manufacture of cryptocurrency mining chips and equipment.
“SBI Group believes in the power of cryptocurrencies to transform the world and we are committed to building a leading cryptocurrency system,” Kitao said in 2017. At that time, SBI joined forces with another company to develop implementations that would improve the security of Bitcoin Cash (BCH).
By: Jenson Nuñez.
