- Ripple bags the 2nd place and Coinbase 3rd while first place went to $35 billion online payments company Stripe
- Apart from $10 billion valuation Ripple and $8.1 billion Coinbase, Robinhood also made it to the list
Three cryptocurrency-related businesses have made it to Forbes' “The 10 Biggest Fintech Companies In America 2020” that involves most valuable private, venture-backed fintech.
At 2nd place is none other than Chris Larsen and Jed McCaleb founded Ripple, valued at $10 billion that facilitates international payments, including with a cryptocurrency XRP for its network of 300 clients that involve the names of Santander and Standard Chartered.
“Ripple also had a stunning rise in value, hitting $10 billion and becoming the second-most valuable fintech startup.”
The article also points out that under the leadership (CEO) of Brad Garlinghouse, Ripple captured MoneyGram as its partner, in which it invested $50 million by selling $500 million of XRP. The second-largest payment provider now uses XRP in 10% of its cross-border transactions in the US Mexico corridor.
Just a place down at 3rd spot is cryptocurrency exchange Coinbase founded by CEO Brian Armstrong and 31-year old board member Fred Ehrsam.
A San Francisco-based $8.1 billion company, Coinbase has branched out to offer crypto custodial service to institutions after “making its mark as a safe and regulatory-compliant crypto exchange.” The exchange has also ventured into a personal wallet and new currencies.
Another step down is the $7.6 billion valued mobile app Robinhood that offers commission-free trading of stocks, ETFs, options, and cryptocurrencies. The company fell off Forbes’ Fintech 50 list in 2020 due to competition in the market that had brokerage giants like Fidelity and Schwab dropping their fees to $0.
While Robinhood launched a feature called “cash management” that pays 1.8% interest on uninvested cash in your brokerage account, in 2019 it’s active users grew only 13% compared to near-doubling of users in 2018.
Others on this list are no-fee checking accounts Chime, Plaid, student loan refinancing startup SoFi, free credit monitoring and credit score service Credit Karma, Opendoor, and Root.
2019 was actually a “boom time” for financial technology as total venture capital funding for private US fintech reached $18 billion compared to $13 billion the previous year.