The SBI Q2 Report is out. Six slides bear upon #XRP and #Ripple and then I just type a couple more thoughts..
1) First up - ODL makes the presentation! (p.181) JPY-PHP is Japan's first DA remittance service. sbigroup.co.jp/english/invest…
2) Not a huge surprise, but SBI is planning for #Ripple's IPO. (p.75)
3) SBI has set up a car export business in Africa with the intent to use #XRP. (p.90)
4) SBI is launching a crypto fund of the DA they sell with a large portion as #XRP. (not clear if it will be 50% as reported last year, but doubtful?) (p.174)
5) #XRP is central to their remittance strategy, obviously, but as SBI goes all-in with DeFi, tokenized assets and NFTs, will XRP find an expanding role? (p.153)
And now, boring text with no pictures-
SBI describes itself as a personal online bank that is pivoting to include larger corporate accounts, their regional revitalization efforts require it. It means providing FX liquidity in traditional ways, too, not just Ripple/XRP. 🤔
They move forward w/ Osaka Exchange providing global DA liquidity, too. #XRP is presented very specifically for xborder tx's. I presume more ODL corridors are on the way, but will their consideration of XRP change as their DA ambitions grow? NFT? Sidechains? That's the q.
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Here's is the investor presentation ex.-99.1 for Evernorth! It clarifies and titillates :) I haven't clipped them all, but most here. Take a look, especially at 6 & 9. 🧵
Here is the 8-K form for the #Ripple backed SPAC merger w/ Armada Acquisition Corp II to hold #XRP. Ripple is a named party in the agreement. 1/3
2. One clause requires Evernorth to buy #XRP equal to the advance funding proceeds within ten days of closing. (Opinion) The contract uses “purchase,” not “transfer” or “acquire from Ripple” so I believe these are open market buys.
3. The wallet will be operated by Pubco (Evernorth) to function as a company whose balance sheet intentionally holds XRP as a core reserve. It will be a public, regulated co - we will know the financials of this entity because it will be listed.
#Ripple/Securitize/BlackRock/VanEck: What does it all mean? The short version is that Securitize has tokenized some funds from big players. Now, they have made a contract for seamless redemption to #RLUSD.
So what?
A thread.
2⃣ What are these funds?
>BUIDL is BlackRock’s tokenized money market fund, a cash management tool to safely park cash.
>VBILL is VanEck’s tokenized U.S. Treasury Bill fund. Used by trading desks, hedgefunds wanting crytpo T-Bills.
3⃣ Securitize issues tokens representing both funds. Now they have a smart contract that lets holders redeem them in RLUSD, 24/7. No waiting for banks or end-of-day bank processing. Call it programmable liquidity.
Unpacking the #Ripple/Gemini news. What exactly is going on? The whole may be greater than the sum of it's parts. (It gets weird in #5) This week has brought interesting news to ponder if this is more than just a loan ⤵️ 1/8
2⃣Gemini’s SEC filing shows a revolving credit facility from #Ripple, a line of credit basically, up to $75M USD, expandable to $150M.
> Min draw is $5M
> Interest 6.5% or 8.5% depending on the collateral, which likely includes crypto.
Pretty standard before an IPO, but⤵️
3⃣The unusual part is that once Gemini borrows past $75M, additional draws can be in #RLUSD. It doesn't require or force RLUSD use, it just makes it available. It could embed RLUSD into a regulated exchange’s financing, but they don't have to.
📰📰#Ripple’s OCC Banking License application is now available! Vol. 1 is the public release. The application provides some clues about Ripple’s intentions and structure to consider.
1/6
2⃣First, and maybe obviously, Ripple is applying to charter a limited purpose OCC-regulated national trust bank. It would enable custody of RLUSD reserves and operating regulated infrastructure for tokenized finance and …...future Fed access (?).
3⃣So it won't be retail. The CRA says it doesn't apply "to national banks that don't engage in any lending or deposit-taking activities &whose biz consists exclusively of fiduciary activities.” No deposits or lending, strictly B2B banking & infrastructure. Probably obvious.
A couple of highlights from the latest SBI report pertaining to #XRP & #Ripple. 1/3
[1] Some detail about adoption: SBI cites Ripple Payments in use by 100+ FI's across 55 countries. This is different than the oft cited 300 FI's, which may be using other products.
[2] They seem to be for crypto ETFs, including #XRP
[3] SBI has plans for #RLUSD. (Note the restrictions on JPY-backed stablecoins, too)