SBI Says XRP in Escrow Won’t Count Toward Valuation Until Ripple IPO, Eyes ¥1 Trillion for Its Crypto Asset Business

SBI Holdings, one of Japan’s largest financial services groups, has indicated that it will only recognize the valuation of its Ripple shares once the firm goes public or receives an equivalent formal valuation.

As revealed by XRP community figure Eri, the disclosure came as part of SBI’s annual financial report for the year ended March 31, 2025, where the company detailed its crypto asset business ambitions and hinted at explosive growth potential tied to its longstanding investment in Ripple.

SBI Reports Stellar Financial Year

The report confirmed that SBI had a stellar year, with revenue surging 19.3% year-on-year to ¥1.44 trillion and profit before tax nearly doubling to ¥282.3 billion. Profit attributable to shareholders climbed 85.8% to ¥162.1 billion, driven by strong performance across multiple sectors, particularly in crypto and venture investments.

The crypto asset division alone recorded ¥80.8 billion in revenue, marking a 41.4% annual increase, while pre-tax profit in this segment jumped 151.8% to ¥21.2 billion due to rising cryptocurrency prices.

In this context, SBI emphasized that it holds unlisted Ripple shares, and the value of XRP held in Ripple’s escrow account, referred to internally as X-Grow, is not currently reflected in the company’s balance sheet.

SBI To Price in XRP Exposure After Ripple IPO

Notably, SBI clarified that only once Ripple undergoes an IPO or obtains a recognized valuation will this asset be priced in, potentially resulting in a dramatic increase in profit.

SBI projects that, if unlocked, this unrealized value could exceed ¥1 trillion, pushing the company’s crypto asset business toward its stated goal of managing over ¥1 trillion in assets, up from the current ¥900 billion.

SBI’s involvement with Ripple began over a decade ago, having invested in the company as early as 2012. The financial giant holds just under 10% equity in Ripple, making it the firm’s largest external shareholder.

Over the years, the partnership has deepened through strategic initiatives such as SBI Ripple Asia, a joint venture launched in 2016 to promote RippleNet solutions across Asia, and MoneyTap, a mobile payments app powered by Ripple’s technology. Additionally, SBI Remit has been actively using XRP for international money transfers since 2021, particularly in Southeast Asia.

Despite growing market interest, Ripple’s IPO remains a prospect rather than an immediate plan. CEO Brad Garlinghouse previously stated that taking Ripple public is not an urgent priority, citing the company’s solid balance sheet.

However, he did suggest that an IPO could become feasible by late 2025 or 2026 if the regulatory landscape improves, particularly after the partial resolution of Ripple’s legal battle with the U.S. Securities and Exchange Commission. Market speculation suggests that a Ripple IPO could command valuations upwards of $100 billion, particularly if global XRP adoption continues.