Ripple, the company behind XRP which is the fourth largest Cryptocurrency in terms of market cap just invested $25 Million in XRP to Blockchain Capital Parallel IV, LP. The fund has a total of $150 Million which will be managed by Blockchain Capital. Blockchain Capital is the oldest VC firm which exclusively invests in Blockchain startups and they are the only firm which accepts capital calls in Cryptocurrencies.
Currently, the usage of XRP is very limited and is being used for settling transactions on the back-end by banks. But Ripple hopes the investment would be used to identify new use cases for XRP Ledger and Interledger protocol.
Bart Stephens, co-founder and managing partner of Blockchain Capital said “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.”
Ripple has been in a spending spree lately. Last month, the company donated more than $20 Million as charity to fund public schools with basic amenities. With their existing product, Ripple has been forming major partnerships with multiple companies around the world.
“Blockchain Capital is the premiere fund for any project looking to get off the ground in the blockchain space. They have a proven track record for finding and funding the projects that matter,” said Patrick Griffin, SVP of Strategic Growth at Ripple. “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.”