SBI Holdings, one of Japan’s most influential financial institutions, has confirmed it will not include the value of XRP held in Ripple’s escrow account in its official valuation until Ripple conducts an initial public offering (IPO) or obtains an equivalent formal valuation. This announcement, recently highlighted by XRP advocate Eri, came directly from SBI’s 2025 annual financial report and has sparked renewed speculation about Ripple’s market potential.
SBI Reports Explosive Growth Across Key Divisions
In its latest financial report for the fiscal year ending March 31, 2025, SBI posted remarkable results. The group’s total revenue climbed by 19.3% year-on-year, reaching ¥1.44 trillion, while profit before tax nearly doubled to ¥282.3 billion. Most notably, profit attributable to shareholders surged 85.8%, settling at ¥162.1 billion. SBI credits this exceptional growth to strong performance in both venture investments and cryptocurrency-related ventures.
The momentum was even more striking within the company’s crypto asset division. SBI generated ¥80.8 billion in crypto revenue, a 41.4% increase from the previous year. Meanwhile, pre-tax profit in this segment skyrocketed by 151.8%, totalling ¥21.2 billion. This uptick aligns with the broader rally in cryptocurrency prices throughout late 2024 and early 2025.
Ripple Exposure Remains Unpriced—For Now
Despite these numbers, SBI clarified that its current financials do not reflect the value of XRP assets held in Ripple’s escrow wallet, which the firm internally refers to as X-Grow. SBI holds a significant equity stake just shy of 10% in Ripple Labs, positioning it as the company’s most important external shareholder. However, these shares remain unlisted, and the associated XRP assets are currently absent from SBI’s balance sheet.
The financial group emphasised that only after Ripple completes an IPO—or secures a widely recognised valuation—will these assets be priced into SBI’s books. At that point, the valuation boost could be substantial. SBI estimates that unlocking the unrealised value of its Ripple shares and associated XRP holdings could exceed ¥1 trillion, potentially pushing its crypto asset division past its ambitious ¥1 trillion asset management goal.
SBI’s Decade-Long Partnership with Ripple
SBI’s journey with Ripple began over a decade ago, with early-stage investments dating back to 2012. Their partnership has since evolved into a cornerstone of SBI’s blockchain strategy. In 2016, the two companies launched SBI Ripple Asia, a joint venture to advance RippleNet solutions throughout Asia. Later, they introduced MoneyTap, a mobile payment platform powered by Ripple’s blockchain technology.
SBI Remit, another branch of the financial group, began using XRP for international transfers in 2021, primarily serving markets across Southeast Asia. This integration showcases SBI’s active efforts to push real-world crypto utility, particularly through Ripple’s tech infrastructure.
Related article: Ripple Agreement Triggers Harsh Rebuke from SEC Official
Ripple IPO on the Horizon—but No Rush
While many investors anticipate Ripple’s public debut, CEO Brad Garlinghouse has clarified that the company is not rushing to go public. He emphasised that Ripple’s balance sheet remains strong, allowing the company to grow without the immediate need for an IPO.
Still, Garlinghouse acknowledged that a public listing could become a viable option by late 2025 or 2026, especially if regulatory clarity improves in the United States. That clarity began taking shape after Ripple’s partial legal victory against the U.S. Securities and Exchange Commission (SEC) in 2024, which classified XRP as a non-security for most transactions.
Speculation continues to swirl regarding Ripple’s potential valuation, with some industry watchers predicting a $100 billion IPO if global XRP adoption expands.
