XRP News Today: Proposal for Ripple Buyback by Japanese Financial Powerhouse SBI – Discover the Full Story
In a direct appeal to CEO Yoshitaka Kitao, the Swiss investment firm has urged SBI to consider launching an XRP buyback initiative, drawing a parallel to MicroStrategy's ongoing Bitcoin acquisition strategy.
The firm highlighted SBI's current undervaluation, proposing that increasing its XRP holdings could bolster its influence in the cryptocurrency market. The concept is straightforward—regard XRP as a long-term asset, similar to MicroStrategy's approach with Bitcoin.
Although more institutional players are eyeing XRP, the persistent challenges of Bitcoin—limited utility and scalability issues—are becoming increasingly apparent.
Fortunately, a new hybrid layer 2 project named PlutoChain ($PLUTO) could potentially address these problems.
Let's dive into the specifics…
GAM Advocates for SBI to Repurchase XRP, Claiming It’s Greatly Undervalued
The Swiss investment firm GAM Investments is urging SBI Holdings to adopt a fresh strategy regarding its XRP assets.
In a letter directed to SBI CEO Yoshitaka Kitao, GAM stated that SBI is significantly undervalued, primarily due to the market not fully recognizing its involvement with Ripple Labs and its extensive XRP reserves.
GAM highlighted that SBI's indirect investment in Ripple is valued at over JPY 1.6 trillion, yet its market capitalization is only JPY 1.2 trillion. This indicates a substantial gap between SBI's real value and its stock valuation, likely resulting from insufficient transparency in its cryptocurrency strategy.
To rectify this, GAM proposed several key recommendations. The first involves enhancing transparency by having SBI regularly publish XRP valuations and update shareholders on NAV figures. However, the most significant proposal is an XRP buyback scheme, where SBI would leverage its cash flow from banking and securities to purchase XRP from the market.
GAM believes this approach could elevate the value of SBI's XRP assets while decreasing the circulating supply of XRP, which might lead to an increase in the token’s price over time.
This strategy echoes MicroStrategy's Bitcoin acquisition, which has solidified its stature in the industry.
While SBI already holds 8-9% of Ripple Labs and has been a proponent of blockchain technology in Japan for many years, the market has yet to fully acknowledge this. GAM believes that an XRP buyback could change this perception, unlocking significant value for SBI's shareholders and potentially increasing its market cap to around JPY 3.9 trillion, a valuation GAM believes more accurately reflects the company's true worth.
Whether SBI will proceed with this plan is yet to be seen, but if it does, it could be one of the most substantial developments related to XRP in recent times.
PlutoChain May Introduce DeFi to Bitcoin Using a Hybrid Layer-2 Innovation
Bitcoin is often regarded as digital gold, but it tends to lag behind in terms of real innovation. PlutoChain ($PLUTO) aims to change that by offering a hybrid Layer-2 solution that could finally enable smart contracts and decentralized applications (dApps) on Bitcoin.
With compatibility with the Ethereum Virtual Machine (EVM), PlutoChain might provide developers with a way to transition Ethereum-based projects to Bitcoin’s network. If successful, this could merge Bitcoin’s robust security with Ethereum’s adaptability, paving the way for DeFi, NFTs, and AI-powered applications to function directly on Bitcoin.
One of Bitcoin’s longstanding challenges has been speed, but with PlutoChain’s two-second block times, this issue could be resolved. Faster and more affordable transactions would make Bitcoin more viable, particularly for DeFi and cross-chain applications.
The platform’s security has been assessed through audits by SolidProof, QuillAudits, and Assure DeFi.
Departing from typical Bitcoin upgrades that depend on miners and developers, PlutoChain empowers the community to have a voice in its governance, allowing users to propose and vote on changes to the network.
Tests have already indicated that PlutoChain can handle over 43,200 transactions daily, showcasing its scalability. Currently, the DeFi market on Bitcoin is almost nonexistent, representing just 0.13% of its total market cap.
PlutoChain could offer a significant opportunity for developers, potentially transforming Bitcoin into more than merely a store of value.
Final Thoughts
Should SBI decide to pursue an XRP buyback, it might revolutionize how major financial entities engage with cryptocurrency investments. GAM is convinced that SBI's undervalued status and strong connection to Ripple make it an ideal candidate to emulate MicroStrategy's Bitcoin strategy.
The decision on whether SBI will take action remains open, but a significant accumulation of XRP could substantially alter the token’s supply and market price.
Meanwhile, Bitcoin continues to face challenges with slow transactions and limited functionality.
That’s where PlutoChain ($PLUTO) might step in to assist. With quicker block times, lower transaction fees, and DeFi capabilities, it could potentially resolve Bitcoin’s longstanding issues.
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