Ripple, which is providing the back-end for Santander’s new crypto payments app, is putting $25 million worth of its cryptocurrency into a venture fund boosting Blockchain projects.
The company, which controversially retains control of 60% of the complete circulation of the Ripple (XRP) currency it created – despite stressing its independence – has agreed to sink $25m dollars worth of it into start-up investments being made by Blockchain Capital.
The company, which recently airdropped a massive cache of XRP into US public school coffers is hoping to stimulate interest in the creation of applications that use its currency and blockchain, which has attracted a lot of interest as a back-end technology in the banking industry, but has only been adopted by one other Coin thus far – the somewhat mysterious Allvor.
In the payments sector, it is already in partnerships with MoneyGram, Western Union, as well as American Express and Santander – which will use it as the tech behind its All-in-One Payment app, which is due to go live imminently.
“We want smart people and smart entrepreneurs, who can solve a problem using XRP,” Cory Johnson, chief market strategist at Ripple, told CNBC. “There’s money sitting there to be used.”
XRP’s price has shot up by around 25% in the last 24hrs, according to Cryptocompare – leaving it at around the $0.65 mark. That still represents a big drop-off from it’s high around $2.75 on January 7th, and reflects an unusual spike in the market that took place around lunchtime yesterday (UK time).