Ripple Jumps on Investment in Blockchain Fund

Ripple backs a blockchain-focused venture with USD 25 million of XRP.

by Kalina Tekelieva
12 April • 2 min
In News

California-based cryptocurrency startup Ripple has invested USD 25 million worth of its XRP coin into blockchain venture fund Blockchain Capital, a move that sent the XRP price into the green.

The investment will be used to fund startups in the blockchain ecosystem and will also help determine new use cases for the open-source platforms XRP Ledger and Interledger Protocol.

The USD 150-million fund exclusively dedicated to the blockchain and crypto space is the first fund that accepts capital injections in digital assets, Ripple’s press release, published on Wednesday, points out.

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XRP prices on the rise

Shortly after yesterday’s announcement, the price of XRP marked an increase and was traded at USD 0.55 at the time of writing, up nearly 12% from the previous day. XRP, currently the third largest coin by market cap, registered a record high of USD 3.84 in January, but soon after its price plunged to under USD 0.50.

Where is Ripple heading to?

So far, the XRP coin has been used mainly to enhance cross-border payments. However, Ripple started looking for ways to broaden its scope and expand the use of XRP, CEO Brad Garlinghouse revealed to TechCrunch in March. The investment in the US blockchain fund represents namely a step in that direction.

“[Blockchain Capital] 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,” Patrick Griffin, Ripple’s senior vice president of strategic growth, said in the company’s statement.

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Another company official, chief market strategist Cory Johnson, said in an interview for CNBC that XRP has a potential to be used in various fields. “There’s money sitting there to be used,” he is convinced.

Speaking about future opportunities, the market strategist claimed it will be great for Ripple if, for example, “somebody starts the next Uber, or Instagram or Salesforce using XRP”.