The $150 million fund is handled by Blockchain Capital -- one of the oldest venture firm focussed on the development of digital currency and blockchain technology.
Famous distributed ledger technology company, Ripple, has invested $25 million in XRP to Blockchain Capital Parallel fourth venture fund. Blockchain capital Parallel’s fourth venture fund is actually the first to accept capital calls in digital assets and focuses on the development in the blockchain space. The $150 million fund is handled by Blockchain Capital — one of the oldest venture firm focussed on the development of digital currency and blockchain technology.
The investment will enable “an opportunity to examine new use cases for the XRP ledger and Interledger Protocol, support startups dealing in the space and focus on the development of new use cases in the blockchain space,” Ripple said in a blogpost.
XRP and Interledger Protocol are open source platforms. XRP is a modified blockchain system which enables people and financial institutions to send payments across the globe (a replacement to widely used SWIFT). While Interledger Protocol is an open protocol for payments across payment networks.
The venture firm is looking to employ XRP in the fields of healthcare or identity management and believes it could prove better than the traditional systems and could benefit from the distributed ledger technology.
“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,” said Bart Stephens, co-founder and managing partner of Blockchain Capital
“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,” he added.
Further, Ripple is looking to partner with Santander banking group to initiate global money transfer app. The app will be based on Ripple’s xCurrent and RippleNet platforms. Earlier this year, Ripple had announced partnership with payment services company Moneygram.
This is different because if you believe in your technology and the company’s vision, why would you invest XRP on through a venture fund that will further invest that money in potential rivals? Further it is not clear how many Ripples are worth $25 million as it traded over $3 earlier this year.