SBI Plans Japanese Crypto Asset Fund with 50% Allocation to XRP

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SBI Group, one of Japan’s most forward-thinking financial conglomerates, is accelerating its push into the digital asset space with ambitious plans for a new cryptocurrency investment fund. The fund is expected to allocate half of its assets to XRP, with additional significant exposure to Bitcoin and Ether, signaling a bold bet on the future of blockchain-based finance. This move aligns with SBI’s broader strategy to position itself at the forefront of the global digital asset revolution.

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A Strategic Shift Toward Digital Assets

In a recent investor presentation, SBI unveiled key elements of its digital transformation strategy, emphasizing blockchain, security token offerings (STOs), and cryptocurrency investment vehicles. While many of the initiatives were previously announced, several new developments stand out—particularly the planned crypto-asset fund for retail investors and SBI’s claim to being R3’s largest external shareholder.

The company also expressed intentions to deepen collaboration with 13 portfolio companies active in the digital asset ecosystem—some of which may eventually become subsidiaries. This consolidation strategy underscores SBI’s long-term vision: building an integrated, end-to-end blockchain finance infrastructure.

The XRP-Dominant Crypto Fund

One of the most eye-catching elements of the presentation was a pie chart outlining the proposed asset allocation for the new crypto fund:

This heavy weighting toward XRP reflects SBI’s longstanding partnership with Ripple and its belief in XRP’s utility for cross-border payments and institutional liquidity solutions. While the allocation may be illustrative at this stage, it sends a strong signal about SBI’s confidence in XRP’s long-term value proposition.

The fund will be managed through multiple SBI subsidiaries:

Fundraising is expected to begin in summer 2020, targeting individual investors in Japan—a demographic that has shown growing interest in regulated crypto products.

The 4+5 Fund: A Vision for Industry 4.0 and Society 5.0

Beyond the crypto-focused fund, SBI introduced the “4+5 Fund,” a JPY 100 billion (approximately $928 million) initiative inspired by Industry 4.0 and Japan’s Society 5.0 vision—a government-backed framework integrating digital technologies into everyday life.

This fund will support innovation across blockchain, artificial intelligence, IoT, and fintech, with a strong emphasis on digital assets. It represents not just an investment vehicle but a strategic pivot toward shaping Japan’s next-generation financial infrastructure.

SBI’s Six-Point Digital Asset Strategy

SBI outlined a comprehensive six-point roadmap, four of which are directly tied to blockchain and digital assets. These pillars demonstrate a methodical approach to mainstreaming blockchain technology within traditional finance.

1. Global Digital Asset Organizational Structure

SBI aims to establish a unified global framework for managing its digital asset ventures. It currently holds stakes in 13 key firms, including:

The company plans to either strengthen business alliances with these entities or bring them under full ownership as subsidiaries. This vertical integration could create one of Asia’s most powerful blockchain ecosystems.

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2. Advancing Security Token Offerings (STOs)

SBI continues to champion STOs as a bridge between traditional capital markets and blockchain innovation. Central to this effort is the Security Token Offering Association, a self-regulatory body co-founded by SBI and Nomura. Since launching nine months ago, the association has grown from six founding members to ten, adding major institutions like:

Additionally, 14 other companies have joined as support members, reflecting growing industry confidence in regulated tokenized securities.

SBI also showcased a global STO ecosystem map featuring key partners such as Boerse Stuttgart, Securitize, and Templum, highlighting cross-border collaboration in tokenized asset issuance and trading.

3. Blockchain for Supply Chain Innovation

SBI is actively supporting enterprise adoption of blockchain beyond finance. A notable case study involves Siam Cement Group (SCG), Thailand’s largest building materials company, which implemented R3’s Corda platform for procurement processes in collaboration with Digital Ventures and Accenture.

This project demonstrates how distributed ledger technology can enhance transparency, reduce fraud, and streamline logistics—a use case SBI believes has vast untapped potential across Asia.

4. Deepening R3 and Corda Partnerships

SBI reinforced its commitment to enterprise blockchain by disclosing a Memorandum of Understanding (MOU) with Sumitomo Mitsui Banking Corporation (SMBC). Under the agreement:

Crucially, the presentation reaffirmed SBI’s status as R3’s largest outside shareholder, a claim consistent with its prior statements. SMBC is also a participant in the Marco Polo Network, a trade finance platform built on Corda, further cementing Japan’s role in global blockchain trade solutions.

Expanding Retail Blockchain Services with Money Tap

Another major component of SBI’s strategy is the Money Tap mobile payment app, powered by Ripple’s technology. Originally developed under the SBI Ripple Asia joint venture, Money Tap was later spun off into an independent entity to accelerate adoption.

Currently, 35 Japanese banks are live on the platform, enabling instant, low-cost domestic transfers using blockchain. Unlike traditional systems that rely on intermediaries and batch processing, Money Tap offers real-time settlement—making it ideal for peer-to-peer transactions and small business payments.

Notably, the presentation mentioned that Money Tap is “considering accepting an investment from U.S. Ripple,” which could deepen ties between the Japanese consortium and Ripple Labs, potentially unlocking new cross-border functionality.

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Frequently Asked Questions (FAQ)

Q: Why is SBI allocating 50% of its crypto fund to XRP?
A: SBI has a long-standing strategic partnership with Ripple and believes in XRP’s utility for fast, low-cost cross-border transactions. Its investment reflects confidence in XRP’s role in institutional finance.

Q: Is the XRP-heavy fund already available to investors?
A: As of now, the fund is still in development. Fundraising was expected to begin in summer 2020, but current availability should be verified through official SBI channels.

Q: What is the difference between the crypto fund and the 4+5 Fund?
A: The crypto fund focuses exclusively on digital assets like XRP, Bitcoin, and Ether. The 4+5 Fund is broader, targeting JPY 100 billion in investments across blockchain, AI, IoT, and fintech innovations aligned with Industry 4.0 and Society 5.0.

Q: How does SBI plan to regulate its STO initiatives?
A: Through the Security Token Offering Association—a self-regulatory body co-founded by SBI and Nomura—which sets standards for issuance, custody, and trading of tokenized securities in Japan.

Q: Can foreign investors participate in SBI’s crypto fund?
A: The fund is primarily targeted at Japanese individual investors. International access would depend on regulatory approvals and distribution partnerships.

Q: What role does R3 play in SBI’s strategy?
A: R3’s Corda platform is central to SBI’s enterprise blockchain projects, including trade finance via Marco Polo and supply chain solutions like the one with Siam Cement.

Conclusion

SBI Group is not just dipping its toes into digital assets—it’s building an entire ecosystem. From retail crypto funds dominated by XRP to enterprise-grade blockchain solutions with R3 and Ripple, SBI is positioning itself as a leader in Japan’s financial digitization journey.

With strong institutional backing, regulatory engagement, and a clear roadmap for integration across banking, payments, and capital markets, SBI’s vision offers a blueprint for how traditional finance can evolve in the blockchain era.