Ripple, the fintech startup associated with the digital currency XRP declared that it is investing $25 million in Blockchain Capital, one of the leading Venture Capital funds that specialize in blockchain-related deals.
Blockchain Capital is the oldest venture capital firm in the blockchain/crypto world which announced that it is raising $150 million to invest in equity and cryptocurrency assets. Founded in 2013, they already have blockbuster names like Coinbase, Ripple, and Abra in their portfolio.
Ripple aims to bankroll clever entrepreneurs who can find additional real-world uses for Ripple’s blockchain technology. As of now, Ripple’s technology is mostly applied to real-time transaction settlements for banks, with partnerships with US money transfer giants MoneyGram, Western Union, American Express and Santander.
This statement by Cory Johnson, chief market strategist at Ripple sums up the company’s entire basis of the investment:
“When I got my iPhone I did not think the killer app would be Uber, the most valuable private company in the world, or a competitor to Kodak with Instagram. I don't know what the best use of XRP is going to be, and I hope it's something we can't even think of.”
The company made its investment in XRP and not USD. The company is not looking to offload its currency and $25 million makes only a tiny dent in its balance sheets. If Ripple donated $200 million every year, it would take them more than 150 years to run out of funds.
— Ripple (@Ripple) April 11, 2018
This story follows another news headline made by Ripple when they donated $29 Million worth of XRP to DonorsChoose.Org, funding every single project request. This news is always welcomed by the crypto community since it shows that cryptocurrencies can be much more than a speculative asset which is the latest fad. People are forced to take Ripple and other cryptocurrencies much more seriously after such news.