Blockchain solutions provider Ripple has invested $25 million of its own cryptocurrency, XRP, in Blockchain Capital's Parallel IV venture fund. Ripple made the investment in form of its native XRP tokens, as part of a $150 million blockchain fund managed by Blockchain Capital.
Now, this isn't an option at most venture capital firms, which are making investments in crypto-related projects but don't typically accept fundraising contributions in the actual cryptocurrencies.
XRP is also optimistic as Blockchain Capital's investment will provide an opportunity to identify new use cases for Ripple's own technology - the XRP Ledger and Interledger Protocol.
The crypto-exclusive venture firm underlined that it would invest in innovative projects that employ blockchain technology in areas beyond payments.
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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. Ripple has already partnered with three of the world's top five money-transfer companies (MoneyGram and Western Union being the largest), to provide XRP-based transfers from anywhere in the world.
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Ripple has struck several partnerships deals with banks and financial institutions.
Blockchain Capital is already a major investor in Ripple and is now looking to strategically pour its new stockpile of XRP tokens into healthcare and identity management companies.
Bart Stephens, co-founder and managing partner of Blockchain Capital, said that as pioneers in the blockchain sector, they have been on the frontlines and in the trenches with their portfolio companies, like Ripple, building a new crypto ecosystem.
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.
The reason behind this investment, according to Ripple is that the firm believes in supporting the XRP Ledger and Interledger Protocol, at the same time, the cryptocurrency firm is ready to continue to seek opportunities and support entrepreneurs, companies and funds that share this vision.
Ripple has previously shown its interest in investing in other companies and in contributing charitable donations.