XRP News Today: SBI Excludes 36.54 Billion XRP From Ripple Valuation Awaiting IPO

SBI Holdings, a significant shareholder of Ripple Labs with nearly 10% equity, has announced that it will not include the XRP tokens held in escrow by Ripple when valuing its shares for corporate accounting purposes. This decision comes as SBI awaits a clearer valuation of Ripple's assets, which it believes will be determined through an IPO or similar event.

Ripple Labs currently holds approximately 36.54 billion XRP in escrow, a substantial portion of the cryptocurrency's 100 billion maximum supply. The escrow release program, initiated in 2017, is designed to release 1 billion XRP monthly to maintain a predictable supply pattern. However, Ripple has the flexibility to adjust the release based on market conditions, as seen in March when it returned 700 million XRP to escrow instead of releasing the expected 1 billion tokens.

The decision by SBI Holdings to exclude the escrowed XRP from its valuation of Ripple shares highlights the conservative approach taken by institutional investors in pre-IPO crypto firms. While some analysts view the large volume of XRP in escrow as a potential massive profit for Ripple, others express concerns about the impact on XRP's value if not managed carefully.

Supporters of Ripple, however, point to the company's transparent token release approach as a means to mitigate potential market uncertainties. This transparency is crucial for SBI, which is awaiting Ripple's IPO to achieve a clear valuation of its investment. The escrow program, with its flexibility and transparency, aims to balance the supply of XRP and maintain market stability, which is essential for Ripple's long-term success and the value of SBI's investment.