Overview
Blockchain payment solutions provider Ripple has successfully closed a $200 million Series C funding round**, elevating its valuation to **$10 billion. The investment was led by Tetragon with participation from SBI Holdings and Route 66 Ventures, as reported by Fortune magazine.
Ripple’s Evolution and Unique Approach
Founded in 2012 as OpenCoin, Ripple took a distinctive path in an industry dominated by Bitcoin-centric startups. Unlike Bitcoin, Ripple’s consensus ledger requires identity verification, making it appealing to financial institutions wary of anonymous transactions. Notably, Ripple’s distributed ledger products operate independently of its native token, XRP (Ripple Coin).
Early Challenges and Breakthroughs
- First Client Acquisition: Spent nearly a year securing Germany’s Fidor Bank.
- U.S. Expansion: Signed two American banks within four months, followed by a dozen more in six months.
Global Expansion and Strategic Milestones
Entry into Asian Markets
In September 2018, Ripple entered China’s blockchain payments sector, backed by a network of 55 global financial institutions, including Japan’s MUFG, Spain’s BBVA, and Sweden’s SEB.
Previous Funding Success
- 2018 Series B: Raised $55 million with lead investors like Standard Chartered Bank and Accenture Ventures.
XRP and RippleNet: Transforming Cross-Border Payments
Ripple leverages XRP, the third-largest cryptocurrency by market cap (after Bitcoin and Ethereum), to streamline cross-border transactions. Key advantages over traditional forex include:
- Speed: Near-instant settlements.
- Cost Efficiency: Lower fees compared to legacy systems.
👉 Discover how XRP enhances global payments
RippleNet Growth
By 2019, RippleNet expanded to 300+ institutional users worldwide, reinforcing its role as a backend solution for international payments.
Future Vision and Funding Utilization
The new capital will accelerate:
- Talent Acquisition: Scaling teams to meet rising demand.
- Product Development: Enhancing RippleNet’s capabilities.
- Market Expansion: Advancing Ripple’s vision of an "Internet of Value" for seamless global transactions.
FAQs
1. How does Ripple differ from Bitcoin?
Ripple uses a permissioned ledger requiring identity verification, unlike Bitcoin’s anonymous network.
2. What is XRP’s role in Ripple’s ecosystem?
XRP facilitates low-cost, fast cross-border payments but isn’t mandatory for Ripple’s ledger services.
3. Which major banks partner with Ripple?
MUFG, BBVA, SEB, and Santander are among its 300+ institutional clients.
4. How will the $200 million funding be used?
Primarily for hiring, product innovation, and global market penetration.
👉 Learn more about Ripple’s technology