Ripple, which is also behind the Ripple coin, is changing tact. It now plans to invest in startups leveraging on XRP and their blockchain technology to settle payments.
The blockchain company is one of the largest cryptocurrency platforms in the world and in use by many global banks.
According to CoinMarketCap, XRP has a market capitalization of $29.8B making it the 3rd most liquid coin in the world after Bitcoin and Ethereum. At the peak of the cryptocurrency boom in late 2017, its market cap stood at $128B. However, since the beginning of the year, its value has been sliding lower.
The company is strategically placing itself as a main cog in cross-border payment services and is now looking to expand. In an interview with TechCrunch at the Money2020 summit in Singapore, Ripple CEO, Brad Garlinghouse said:
“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”.
Ripple Changes Tact and Invests in Omni
In realization of those intentions, Ripple and two of its executives took the lead with a $25M investment in Omni. This is a San Francisco startup that provides storage as well as rental services for goods. Omni is going to introduce XRP within its service and The CEO indicated that more similar investments are in line. He believes that Banks are going to ultimately adopt the payment services of Ripple.
This new strategy, which is placing investments in small scale payment and marketplace companies which could utilize the XRP in their operations or the Ripple platform to facilitate their payments, is a departure from its core value proposition. RippleNet and XRP to be specific was custom made for global banks and big financial institutions.
Ripple Adoption is Slow?
However, Garlinghouse remains optimistic despite the lack of adoption by banks. This may take time but he believes that change will ultimately come.
He cited the fact that another company he founded, Dial Pad, which has now been acquired by Yahoo was initially dismissed and the current AT&T chairman Randall Stephenson even said it would not make it big.
Ripple criticism of failing to attract banks has been unending. Its customer base comprises of cross-border remittance services. While making remarks before the conference audience, Garlinghouse dismissed concerns about XRP stability as a payment service saying they were “fake news”. Usually, transaction settlement within the Ripple networks takes a few seconds and fees are negligible.