Japanese financial powerhouse SBI Holdings, which has been instrumental in Ripple Labs’ development in Japan, has announced a partnership with Saudi Aramco, the world’s second-largest company by market cap. The two companies will focus primarily on investing in digital assets and semiconductor production programmes.
In a memorandum of understanding (MoU) inked last week, Saudi Aramco and SBI Holdings committed to launching an initiative designed to foster the promotion of digital asset-related enterprises within Saudi Arabia. In addition, they will also help Japanese digital asset companies that are interested in expanding to the Middle East.
The latest development marks a notable uptick in SBI’s interest in the digital assets space. Just a few days ago, the company teamed up with stablecoin issuer Circle to boost USDC circulation and promote Web3 tech in Japan. By signing this agreement, Circle and SBI committed themselves to comply with all Japanese regulations, with USDC circulation in the Japanese cryptocurrency market central to the agenda.
A key component of SBI Group’s digital asset strategy involves integrating Circle’s Web3 Services, which include smart contract management tools and the Programmable Wallet. SBI Holdings has been a partner of Ripple, and has established itself as the largest external shareholder in the company. Therefore, the move to partner with a conglomerate of Saudi Aramco’s proportion could signal a potential change in Ripple’s growth trajectory for the better.
Along with the digital assets market, the partnership will spearhead a number of semiconductor investment-related initiatives, including the establishment of factories in Saudi Arabia and Japan. In the end, SBI plans to expand the extent of their engagement with Aramco according to their mutual agreements.