Ripple Invests $25 Million XRP in Blockchain-Focused Venture Firm
Fintech startup Ripple divulged an investment of $25 million USD worth of its own currency XRP in Blockchain Capital — a venture firm that specializes in blockchain and crypto projects.
Blockchain Capital aimed to raise $150 million in two funds — Blockchain Capital IV LP and Blockchain Capital Parallel Fund IV. The latter is limited to accepting contributions only in cryptocurrencies. The initial goal was to raise $125 million in Blockchain Capital IV LP, whereas the parallel fund was set to raise $25 million.
Accepting ‘Capital Calls in Digital Assets’
In an official announcement, Ripple declared they’d invested $25 million worth of XRP in the fledgling Blockchain Capital Parallel Fund IV. The blockchain-focused venture firm raised $150 million, making it the most successful of the two fundraising rounds for the company. In total, the company now manages $250 million in assets, with venture partners like Coinbase, Kraken, and Circle as part of its investment portfolio.
Ripple’s announcement, in reference to the new approach of Blockchain Capital to raise funds in cryptocurrencies, said it was the “first fund to capital calls in digital assets.”
The crypto-exclusive venture firm underlined that it would invest in innovative projects that employ blockchain technology in areas beyond payments. It also seeks for startup projects that would ensure the advancement of the entire crypto ecosystem. For startups to become successful, Blockchain Capital will provide all required resources.
Bart Stephens, co-founder of Blockchain Capital, stated:
“As pioneers in the blockchain sector, we have been on the frontlines and in the trenches with our portfolio companies, like Ripple, building a new crypto ecosystem. There are entire verticals — such as healthcare or identity management — that could benefit from blockchain or distributed ledger technology.”
Ripple to Lead the Crypto Revolution?
Ripple hopes innovative startups will use its native protocol to come up with innovative applications in a variety of different sectors.
In its official announcement, Ripple underlined that their “investment will also provide an opportunity to identify new use cases for the XRP Ledger and Interledger Protocol.”
Cory Johnson, chief market strategist at Ripple, told CNBC that the team wants entrepreneurs to develop applications using XRP that solve real-life problems. Johnson hopes that the next Uber, Salesforce, or Instagram will be built using XRP.
“We want smart people and smart entrepreneurs, who can solve a problem using Ripple. There’s money sitting there to be used,” said Johnson.
Patrick Griffin, a vice president with the XRP team, noted that this “is the first fund that we’ve contributed to, and it won’t be the last. We plan to be major players in shaping the future generation of blockchain or crypto companies.”
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Images via Ripple News Tech, Medium