SBI Holdings' New $64.5M Bond Pays Fixed Interest and XRP Rewards

SBI Holdings, one of Japan's largest financial conglomerates, is launching a 10 billion yen ($64.5 million) blockchain-based bond that pays XRP token rewards on top of fixed interest, targeting retail investors and small domestic companies. The securities, called SBI START Bonds, will be issued and managed entirely on-chain, marking the company's first bond issuance in security token format.

What Are the SBI START Bonds?

The SBI START Bonds are three-year fixed-income securities with an indicative annual interest rate between 1.85% and 2.45%, paid on a semiannual basis. Unlike conventional Japanese bonds that rely on the Japan Securities Depository Center (JASDEC) for custody and settlement, these bonds run entirely on "ibet for Fin," a blockchain platform developed by BOOSTRY Co., Ltd., an enterprise-grade system built specifically for security token issuance.

Security tokens (STs) are digital representations of traditional financial instruments, like bonds or equities, issued on a blockchain. The on-chain format means all processes, from issuance and administration during the bond's term to final redemption in 2029, are handled electronically without a centralized depository.

Secondary trading is scheduled to begin on March 25, 2026, through the Osaka Digital Exchange's proprietary "START" trading system, which is open to individual investors.

How Do the XRP Rewards Work?

Beyond the fixed coupon, eligible investors receive XRP based on their subscription amount. The product page specifies 200 yen worth of XRP for every 100,000 yen invested. To qualify, investors must:

• Subscribe to at least 100,000 yen (approximately $650) worth of bonds
• Be a domestic resident individual or corporation based in Japan
• Hold an active account with SBI VC Trade, a registered crypto asset exchange service provider

XRP rewards are distributed at issuance and again on each interest payment date: March 24, 2027, March 24, 2028, and the final interest payment date on March 23, 2029. SBI has said it will release further details on reward amounts closer to each distribution date.

The structure keeps the bond's base yield fixed while adding a layer of crypto exposure that fluctuates with XRP's market price. The two components are separate, meaning the coupon does not change based on XRP's value.

Why SBI VC Trade Account Eligibility Matters

By tying XRP reward eligibility to an SBI VC Trade account, SBI is directly linking bond distribution with its own crypto exchange platform. Investors who do not already hold an account will need to open one and complete the required receipt procedures by 12:00 noon on May 11 to qualify for the first distribution. This channels bond subscribers into SBI's broader digital asset ecosystem in a single product structure.

Why Is SBI Using XRP Specifically?

SBI has deep institutional ties to Ripple, the San Francisco-based blockchain firm behind XRP. SBI formed a partnership with Ripple in 2016, which led to the creation of SBI Ripple Asia and the rollout of XRP-powered remittance corridors between Japan and the Philippines.

SBI Chairman and CEO Yoshitaka Kitao has publicly stated that SBI owns roughly 9% of Ripple Labs, giving it one of the largest known corporate stakes in the firm. A subsidiary of SBI has previously distributed XRP directly to shareholders, making this bond offering consistent with a long-standing pattern of integrating XRP into retail-facing financial products.

Kitao founded SBI Holdings in 1999 as a SoftBank subsidiary, which became independent in 2006. The company now generates over $8 billion in annual revenue across banking, securities, insurance, and digital asset services.

What This Bond Signals for Japan's Security Token Market

Japan has been methodically building regulatory infrastructure for security tokens since 2020, when amendments to the Financial Instruments and Exchange Act brought digital securities under formal oversight. The SBI START Bonds represent one of the first major retail-facing ST bond offerings from a top-tier Japanese financial institution, using an established on-chain platform rather than a pilot or proof-of-concept.

By distributing through the Osaka Digital Exchange's START system, SBI is using infrastructure specifically built for security token secondary trading, giving retail investors a regulated market venue rather than over-the-counter access.

Resources

1. Press release by SBI Holdings: Notice Regarding Issuance of Security Token (ST) Bonds for Individual Investors

2. SBI Holdings’ announcement about SBI Ripple Asia

3. Report by CoinDesk: Japan's SBI to issue 10 billion yen onchain bond with XRP rewards for retail investors