SBI Holdings used its latest earnings report to spotlight one asset above all others: Ripple.
Japan's financial giant said its shareholding in the blockchain payments company is now worth ¥6.6 trillion ($41.2 billion), even as it described its own cryptocurrency business as sluggish while the industry waits for greater regulatory clarity in the United States.
The contrast is striking. SBI's crypto asset business posted a ¥1.4 billion pre-tax loss during the quarter, yet Ripple remains one of the group's most valuable strategic investments.
The company has backed Ripple since 2016 and owns approximately 9% of the private fintech, making it the largest outside shareholder.
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Ripple Remains at the Center of SBI's Crypto Strategy
SBI's relationship with Ripple extends well beyond an equity investment. The companies jointly operate SBI Ripple Asia, while SBI Remit already uses XRP-powered payment infrastructure for cross-border transfers in Japan.
SBI is also preparing to distribute Ripple's RLUSD stablecoin through SBI VC Trade, expanding a partnership that now spans payments, stablecoins and digital asset infrastructure.
During its investor presentation, SBI also highlighted Ripple's broader business. Ripple Payments now serves more than 100 financial institutions across 55 countries, while RLUSD is expected to play a larger role following Ripple's acquisition of prime broker Hidden Road.
Record Earnings Despite Weak Crypto Trading
SBI reported its strongest first quarter on record. Revenue climbed to ¥571 billion, while profit before tax reached ¥225.8 billion.
Net profit attributable to shareholders rose nearly 150% year over year to ¥148.1 billion, with return on equity reaching 29%.
Although its crypto trading business struggled, the company said market-making subsidiary B2C2 remained profitable. SBI also continues to expand its digital asset operations, including its planned acquisition of Japanese exchange Bitbank, a deal expected to bring roughly three million crypto accounts under the group's umbrella.
A $41 Billion Valuation Comes With Questions
SBI's disclosure also raises an obvious question: how is a private investment worth $41.2 billion being valued?
Unlike a publicly traded company, Ripple has no daily market price. The valuation reflects recent private transactions rather than an exchange-traded share price, meaning investors cannot independently verify it in public markets. SBI has previously said an IPO or another major liquidity event could establish a clearer market value for its holding.
It's also important to separate Ripple from XRP. SBI's $41.2 billion figure refers to its equity stake in Ripple, not to holdings of XRP itself.
Ripple's valuation increasingly reflects a broader business that includes payments infrastructure, institutional custody, RLUSD, treasury software and acquisitions such as Hidden Road, alongside its long-standing connection to the XRP ecosystem.
Not everyone is convinced that Ripple deserves such a premium. Earlier this year, Forbes questioned whether the company had achieved the level of commercial adoption needed to justify its private-market valuation, arguing Ripple had yet to significantly disrupt traditional cross-border payment networks despite years of development.
Waiting for Regulatory Clarity
SBI said the crypto market remains in a holding pattern as policymakers debate the U.S. CLARITY Act, legislation that could reshape oversight of digital assets. Executives described the current environment as one where participants are waiting to see whether the bill advances.
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For SBI, however, the long-term strategy appears unchanged. By highlighting the value of its Ripple stake during earnings, the company signaled that it still sees Ripple as a cornerstone of its digital asset business.
Whether the $41.2 billion valuation ultimately proves justified will depend on Ripple's ability to translate private-market confidence into sustained commercial growth and, eventually, a public benchmark investors can measure for themselves.
Reporting by Lidia Yadlos
