Payment settlement company Ripple announced on Wednesday that they would be investing $25 million dollars’ worth of their cryptocurrency, XRP, into a blockchain-focused venture capitalist fund.
Blockchain Capital, the group that manages the fund Ripple invested in, is a venture capital firm that focuses on blockchain-related projects, with a goal of advancing the technology. Ripple said that the point of this investment is to develop inroads with other companies in the blockchain space.
Ripple’s vice president of strategic growth explained the investment in a statement made Wednesday, saying in part:
"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."
Blockchain Capital’s co-founder also spoke about the investment, saying:
“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.”
News of this investment comes less than a month after Ripple’s CEO Brad Garlinghouse announced that they would be making investments in start-up companies that want to utilize their cryptocurrency, XRP. The goal of these investments would be to increase the usage and liquidity of XRP, which is used in Ripple’s xRapid settlement system.
Currently, the only major companies that have signed on to use XRP are Western Union and MoneyGram. Ripple currently owns 60% of the outstanding XRP and increasing the price through partnerships will create a tremendous source of wealth for the company.
Recently, Ripple donated $29 million dollars’ worth of XRP to the non-profit DonorsChoose and funded all 35,000 classroom projects listed on the crowdfunding platform.
At the time this article was written, Ripple’s XRP was trading at approximately $0.50.