Of the 100 billion XRP tokens available, Ripple holds 60 billion. Out of this 60 billion it has decided to invest $25 million in Blockchain Capital, the oldest crypto investment venture fund, that provides investment funds for startups in the cryptocurrency industry.
According to Ripple’s SVP, strategic growth, Patrick Griffin, “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.”
But although the XRP token is being adversely affected by price volatility, Ripple has struck deals with major financial institutions who have agreed to use their blockchain technology to provide both domestic and cross-border money transfers.
Ripple’s blockchain boast of higher transaction speeds than of visa’s, providing a faster way for the banks and financial institution to transfer money. Financial institutions which are already using Ripple’s blockchain include, MoneyGram, Standard chartered, Santander, Westernunion, among others.
The $25M XRP forms part of the $150M raised by the oldest crypto investment venture fund. The fund will be used in helping startups that believe in the blockchain technology and are providing real world solutions using the blockchain technology. Blockchain capital looks at investing the venture fund in startups providing blockchained solutions in healthcare and identity management fields.
According to Bart Stephens, a managing partner at Blockchain Capital, it does not matter whether they use the Bitcoin, the XRP, or the blockchain technology, all they want is to raise funds and invest it in the most promising projects that will provide sustained advantages to consumers.
The investment by Ripple to the oldest crypto investment venture fund was done through Blockchain Capital Parallel IV- a dedicated channel created by BC to handle investment calls made using cryptos. Confirming this, a spokesperson from Blockchain Capital, told Fortune;
“We created the parallel fund to separate our other LPs from the risk of any change in valuation associated with accepting Ripple’s investment in XRP”
Kraken, Coinbase, and Ripple are among companies that Blockchain Capital has invested more than $250 million in assets.
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