Ripple is doubling down on its commitment to support blockchain start ups with a $25 million investment in Blockchain Capital. Last month, the venture capital firm focussed solely on the blockchain technology announced it has received $25 million to its Parallel IV Fund although it did not specify the source.
The April 11 announcement by Ripple confirms that the cryptocurrency is indeed XRP. Ripple, which serves as both a payment network and a cryptocurrency has committed to supporting companies that develop Ripple use cases.
The move was seen as a departure to its initial focus on institutional use cases. Ripple was developed with financial institutions in mind. Several banks have tested the technology and the network announced a partnership with MoneyGram in January.
“Blockchain Capital is the premier fund for any project looking to get off the ground in the blockchain space,” Ripple Senior Vice President in charge of strategic growth said in a statement.
Blockchain Capital has “a proven track record for finding and funding the projects that matter,” Griffin added.
In March, Blockchain said it had received $150 million in its fourth funding round.
Develop Use Cases
The funds will go into funding blockchain start ups as well as supporting new use cases for the XRP Ledger and Interledger Protocol. XRP Ledger allows users to make transactions globally in different currencies. XRP Ledger, on the other hand, is an open protocol for payment networks.
“As open source platforms, the XRP Ledger and Interledger Protocol provide an avenue for developers to work directly with the technology and build on it. While Ripple’s primary focus has been to remove friction from cross-border payments, the investment in Blockchain Capital’s fund provides an opportunity to support and develop additional use cases beyond payments,” Ripple said.
The fund will also go into the “development of the Blockchain space,” the statement said. Blockchain Capital is said to be eyeing the healthcare and identity management sectors as some of the areas that can benefit from the 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,” Bart Stephens Blockchain Capital’s managing partner and co-founder said.
“Whether it’s using XRP, bitcoin or just the underlying 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,” Bart Stephens said in a statement.
Blockchain Capital is the first to accept capital calls in cryptocurrencies.