The Japanese financial giant SBI offers cryptocurrency lending service through its subsidiary SBI VC Trade.
According to the official announcement on November 24, the new cryptocurrency lending platform will allow users to lend SBI cryptocurrency and receive interest at a rate of 1% including taxes.
The new service, called VC Trade Lending, will initially support the large cryptocurrency Bitcoin (BTC), while SBI plans to add support for Ether (ETH) and XRP in the future. The minimum loan amount is 0.1 BTC or $ 1,840 at time of publication, and the maximum loan amount is 5 BTC or $ 92,000.
SBI said VC Trade Lending will not charge any account management fees or annual membership fees. The service also does not charge fees for Japanese yen or cryptocurrency deposits, but it still requires a fee to withdraw the yen.
SBI is a large financial institution in Japan that operates in the crypto industry. In early October 2020, SBI’s currency and derivatives division, SBI Liquidity Market, acquired TaoTao, a cryptocurrency exchange previously owned by Yahoo Japan YJFX with a 40% stake. The company also runs its crypto business through its subsidiary SBI VC Trade.
SBI is also a primary partner of Ripple, a company that builds financial products based on XRP, which is the fourth largest cryptocurrency by market cap at time of publication. At the end of October 2020, SBI Chairman Yoshitaka Kitau announced that Ripple would likely move to Japan if it decided to leave the United States.