Rich by Coin

Japan’s SBI Holdings has announced plans to issue a ¥10 billion onchain bond that will be settled via blockchain technology and offer XRP rewards to eligible retail investors, marking one of the most prominent efforts by a major financial group to merge traditional fixed-income products with digital asset incentives. The offering, branded as SBI START Bonds, will provide a fixed interest rate and use distributed ledger infrastructure for issuance and settlement. Investors registered on the group’s affiliated exchange platform will be eligible to receive XRP tokens as a promotional reward, subject to conditions set out by the company. The XRP component is framed as a loyalty-style reward rather than part of the bond’s principal or coupon payments, a distinction likely intended to address regulatory considerations around securities classification and investor protection.

The structure underscores SBI’s longstanding alignment with Ripple and its digital asset ecosystem, while reflecting a broader push among Japanese financial institutions to experiment with tokenised securities. SBI Holdings, led by chief executive Yoshitaka Kitao, has been a strategic partner and shareholder in Ripple for several years. Through joint ventures and investments, the group has championed cross-border payment solutions and blockchain applications. This move differs in its retail orientation and its explicit linkage to XRP, the digital token associated with Ripple’s payment network.

By tying the bond reward mechanism to XRP holdings or eligibility criteria on its exchange, SBI appears to be leveraging its integrated financial and crypto platforms. Market analysts say the move highlights a continuing convergence between traditional capital markets and digital asset ecosystems. Tokenisation of bonds, equities and funds has gained momentum globally, driven by promises of faster settlement and improved transparency; retail participation in such products, however, remains relatively limited. By structuring the START Bonds as a fixed-income instrument with a familiar coupon profile, SBI may be seeking to lower the barrier for individual investors while introducing them to blockchain-based settlement.