Ripple's investment is apart of a 150 million United States dollars fund being managed by Blockchain Capital, with the objective of investing entirely in the development, growth and utilization of blockchain principles.
The fintech startup - known for its a real-time gross settlement system, currency exchange, and remittance network - has invested $25 million of its own digital currency (XRP) into "a dedicated sidecar vehicle alongside Blockchain Capital's fourth venture fund", as reported by Fortune. More to that it will also support many startups and also focus on the development of the Blockchain field. "There are entire verticals - like healthcare or identity management - that could benefit from blockchain or distributed ledger technology". It has invested in 72 companies, protocols, and tokens, including Coinbase, Ripple, Circle, Ethereum, 0x and Kraken.
Case in point: Venrock, the venture-capital arm of the Rockefeller family (estimated net worth: $1 trillion) has teamed up with the crypto investor group, CoinFund, to help entrepreneurs launch blockchain-based businesses.
Blockchain Capital managing partner Bart Stephens stated, "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". By investing in start-ups, Ripple hopes to stimulates the market for crypto-based development using the concept of blockchain. Not only that, the investment is expected to provide an opportunity to identify new use cases for the XRP Ledger and Interledger Protocol, Ripple has said.
Even if XRP fails to materialize as a major victor from Ripple's new investment, it shows tenacity on behalf of the company to grow the brand of their cryptocurrency.
"We want smart people and smart entrepreneurs, who can solve a problem using Ripple".
"This is the first fund that we've contributed to, and it won't be the last", Patrick Griffin, senior vice-president of strategic growth at Ripple, said in a statement Wednesday. "We plan to be major players in shaping the future generation of blockchain or crypto companies". Share your views in the comments section.