Fukushima to Join Ripple-Powered MoneyTap as SBI Holdings Acquires 18% Stake in Japanese Bank

One of RippleNet's biggest partners keeps expanding its presence on an international level. Fukushima Bank will integrate the Ripple-powered MoneyTap for faster and more cost-effective payments. Will XRP's price rise with the announcement?

  • SBI Holdings make an investment of $10.17 million in Fukushima Bank, the second such investment in a regional bank
  • Japan’s ultra-easy monetary policy has the small banks going in losses and turning to form alliances with peers

SBI Holdings Inc. is forming a capital and business alliance with regional Fukushima Bank Ltd., with SBI taking a 17.91% stake in the latter, announced the company on Monday.

Fukushima will issue new shares to SBI for 222 yen each for a total investment of $10.17 million ( ¥1.11 billion), making the Japanese internet banking giant the biggest shareholder in the lender. An official from SBI will also serve on the bank’s board.

Offices will be established in a joint effort where SBI’s insurance, investment trusts, and other products will be provided to Fukushima’s customers.

Also, Fukushima Bank will integrate with Ripple-powered MoneyTap to provide on-demand domestic payment in Japan.

The news took Fukusima’s shares up 32.9% while SBI Holdings fell 0.2% with little change in the broader market.

Japan’s Ultra Easy Monetary Policy Making it Hard to Survive

Fukushima Bank has been struggling with profitability under Japan’s easy monetary policy that includes negative interest rates.

Established in 1922, Fukushima Bank posted a net loss of ¥3.12 billion in the business year ended in March last year. For the first time in seven years, it fell into the red and the Financial Services Agency ordered the bank to improve its business operations. The bank logged a net profit of ¥521 million in the year through March in 2019.

Many small banks have been affected by the rising cost of developing fintech and population decline.

Out of the 105 regional banks, 45 posted losses in their core business for at least two years straight. According to FSA, 27 of them have been reporting losses for over 5 years in a row. As a result, banks have taken to form an alliance with their peers.

As such, back in September, SBI announced an investment of ¥2.5 billion in a regional bank in western Japan, Simane Bank Ltd.

SBI has been expanding its reach by partnering with banks in an effort to as Japan Times put it, become the country’s “fourth mega-bank” and join the likes of Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., and Mizuho Financial Group Inc.

Ripple (XRP) Live Price

1 XRP/USD =$0.2464 change ~ 2.46%

Coin Market Cap

$10.67 Billion

24 Hour Volume

$186.84 Million

24 Hour VWAP


24 Hour Change


Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Venus Protocol's Decentralized Stablecoin, Via, Launches on Binance Smart Chain; Forked From Compound & MakerDAO

On September. 28, Binance announced the launch of Venus Protocol, an algorithmic money market platform that allows borrowing of over-collateralized loans, lending, and generation...

‘Large-Scale' Crypto Exit Scams Detected in Estonia’s E-Residency Program

Estonia had granted foreigners remote access to its digital infrastructure through its e-residency program, which is now linked to cryptocurrency frauds abroad. Amidst Europe working...

Grayscale Bought 17,100 BTC Last Week, Now Holds 2.4% of Bitcoin’s Supply

As the bitcoin price continues to remain under $13,000 for over a year now and around $10,000 for more than the past month, there...

EY Debuts First ERP Solution on the Ethereum Public Blockchain and Enhances On-Chain Analytics Explorer

Consulting giant Ernest & Young (EY) has launched an enterprise procurement solution based on the Ethereum public blockchain. This initiative will leverage smart contract...

YFI Founder Andre Cronje ‘Still Building' the DeFi Project that Got Hacked for $16 Million

Amidst the craze and shift toward non-fungible tokens (NFT), DeFi sweetheart yEarn’s founder Andre Cronje’s latest project saw rug pulled on $16 million. The project...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today