Ripple Invests $25M in Blockchain Capital

Ripple Invests $25M in Blockchain Capital

Ripple Invests $25M in Blockchain Capital

A spokesperson for Blockchain Capital explained to Fortune that they "created the parallel fund to separate [their] other LPs from the risk of any change in valuation associated with accepting Ripple's investment in XRP".

The $150 million fund that Blockchain Capital will manage will invest in entrepreneurial startups that use blockchain, the technology behind bitcoin, Ripple announced on its website.

The company, which controversially retains control of 60% of the complete circulation of the Ripple (XRP) currency it created - despite stressing its independence - has agreed to sink $25m dollars worth of it into start-up investments being made by Blockchain Capital.

Now, this isn't an option at most venture capital firms, which are making investments in crypto-related projects but don't typically accept fundraising contributions in the actual cryptocurrencies. The vast majority of XRP is still owned by the company, and Ripple fully intends to invest more of its seemingly limitless supply of cryptocurrency into other funds.


Blockchain Capital, a venture capital firm dedicated to blockchain technology, designated Ripple's investment to its own special objective vehicle called the Blockchain Capital Parallel IV, which accepts cryptocurrency investments only. For startups to become successful, Blockchain Capital will provide all required resources. There are entire verticals - such as healthcare or identity management - that could benefit from blockchain or distributed ledger technology.

"The investment will also provide an opportunity to identify new use cases for the XRP Ledger and Interledger Protocol", Ripple's announcement added, pointing to applications of both open-source platforms in areas beyond payments.

"We want smart people and smart entrepreneurs, who can solve a problem using XRP", Cory Johnson, chief market strategist at Ripple, told CNBC. The company has announced partnerships with numerous major money transfer companies in the United States, including MoneyGram and Western Union. Johnson hopes that the next Uber, Salesforce, or Instagram will be built using XRP. "There's money sitting there to be used".

Should Ripple be investing in its competitor's projects?

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