Ripple Labs Inc. will invest in and partner with blockchain startups that use its native cryptocurrency, XRP. Ripple has received criticism lately for its slow adoption by banks and plans to address this by investing in startups that use XRP in a bid to accelerate its market adoption. The announcement was made by Ripple CEO, Brad Garlinghouse during the Money2020 financial services and fintech meetup in Singapore.
Speaking to TechCrunch on the sidelines of the event, Garlinghouse said that Ripple is fully committed to working with banks and financial institutions to provide a better more efficient and cost-effective way to make funds transfers. However, the San Francisco-based startup would seek to invest in startups that use XRP to provide alternative uses of XRP. This would accelerate the growth and market adoption of XRP which have dropped from their January record high price in the wake of the overall cryptocurrency market downhill trend.
Garlinghouse demonstrated Ripple’s commitment to working with startups by referring to Omni, a storage startup based in the Bay Area, California. Omni offers a storage option for those with limited space at home and allows them to rent out the items they have in storage to others. The funding round for Omni was led by Ripple’s executives, Chris Larsen and Stefan Thomas.
“We, Ripple, will stay focused on solving that institutional use case, but we would certainly partner with companies that are looking to use XRP in lots of different ways,” said Garlinghouse.
Ripple’s shift of focus from just working with financial institutions may be just what the company needs as it will increase the avenues in which their users can utilize the XRP tokens. Finding the right partners is key for the growth of XRP and Ripple in general and would give it the justification for the market price of its XRP token.
The banking front is still a key market for Ripple, however. Just recently, Thailand’s third-largest bank by assets, Siam Commercial Bank (SCB) announced that it would add two more currencies to its blockchain money remittance platform that’s supported by Ripple. The platform which is part of Ripple’s broader pilot program with Japanese and South Korean banks will now support the Euro and the British Pound in addition to the Japanese Yen which it has been supporting.
The continued growth in the money remittance platform is a testament of the banking industry’s continued confidence and support for Ripple which is crucial to Ripple’s growth.