Ripple, a payment network based in San-Francisco that uses Blockchain technology, has invested $25 mln of its own currency, XRP, into the Blockchain Capital Parallel IV LP venture fund. This information came to light courtesy of a company announcement made on April 11th. Notably, the $150 mln fund is under the management of Blockchain Capital. This is one of the oldest venture capital firms that has dedicated its efforts to enhancing blockchain technology as well as the digital currency system, apart from being the first fund to accept capital calls in cryptocurrencies.
The XRP Ledger and Interledger Protocol
Through this investment, it will be much easier to examine new use cases for the interledger protocol and the XRP ledger. It will also be dedicated to supporting startups while at the same time focusing on the blockchain space’s development.
It should be noted that both the interledger protocol and the XRP ledger are open source platforms. While the former is an open protocol meant for payment across networks, the latter is an advanced blockchain-like program that makes it possible for users to make transactions using different currencies all over the world. As such, Blockchain Capital hopes to utilize the XRP in areas like healthcare or identity management. By doing this, they believe that they can gain more from the distributed ledger technology.
Bart Stephens, the managing partners and co-founder of Blockchain technology is optimistic about this development. He says:
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, Whether it’s using XRP, Bitcoin or just the underlying Blockchain technology, our goal is to find the best projects and give them the resources to be successful companies that deliver value to customers for the long term,
Patrick Griffin, the Strategic Growth’s SVP at Ripple, notes that the company will keep on making contributions to other funds. This is in line with their vision to become the industry’s main players. According to Griffin, as much as this is the first fund they are getting involved in terms of contribution; it certainly won’t be the last. He says there are plans in place to make sure that the get into this for the long haul. This will hopefully see them become major players in shaping the blockchain field for future blockchain generations or crypto companies.
Reportedly, Ripple is in plans to partner with Santander, a banking group in launching an international money transfer app that will be based on Ripple’s Blockchain xCurrent as well as RippleNet Platforms. January also saw an announcement by Ripple about its partnership with payment service Moneygram to help speed fiat settlements.
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