Ripple, the fintech startup behind the XRP coin, made a $25 million investment in the form of its own cryptocurrency into a dedicated sidecar vehicle alongside Blockchain Capital’s fourth venture fund.
Blockchain Capital, the oldest venture capital firm dedicated to blockchain technology, announced last month that it raised $150 million to invest in equity and cryptocurrency assets.
Now, Blockchain Capital says it accepted XRP, reportedly making it one of the first venture firms to accept capital calls in digital assets. The fundraise carved out the XRP funds into a separate special purpose vehicle called Blockchain Capital Parallel IV, which only accepts contributions in cryptocurrencies.
“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,” said a spokesperson for Blockchain Capital.
Ripple, the third-largest cryptocurrency by market cap after Bitcoin and Ethereum, is the name for both a digital currency and an open payment network. Users are able to efficiently send money globally using the blockchain. Blockchain Capital is looking to deploy the XRP into companies focused on healthcare or identity management, which are industries that “could benefit from blockchain or distributed ledger technology.” Blockchain Capital is also an investor in Ripple, the company.“Whether it’s using XRP, bitcoin, or just the underlying blockchain 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,” said Blockchain Capital managing partner Bart Stephens.