Ripple, a blockchain-focused remittance company, has officially reached the number two spot on the list of the most valuable businesses in fintech. The San Francisco-based company was valued at $10 billion, after raising more than $200 million in a funding round in December 2019. So, Ripple is officially the 2nd largest fintech company in the US – what does that mean for them?
What is Ripple?
According to eToro, “Simply put, Ripple is the company behind XRP. RippleNet and the XRP Ledger were created by RippleLabs, which uses open-source technology to beat Bitcoin in speed, and banks and other financial institutions in fees. Having launched in 2012, Ripple soon exploded onto the crypto scene… While Ripple has its own currency (XRP – but more on that later), it also allows its users to create their own tokens via the XRP Ledger.”
The 10 largest fintech companies in America, according to Forbes, has payment processing giant Stripe sitting in first place with a value of $35 billion. Ripple is just behind at $10 billion, and Coinbase, the famous cryptocurrency exchange, is in third place at $8.1 billion.
Robinhood, Chime, Plaid, SoFi, Credit Karma, Opendoor, and Root make up the remainder of the top 10.
Ripple’s valuation is partly due to its ownership of more than half of the total supply of its native coin, XRP – which is the third largest digital asset by market cap.
In 2019, Ripple sold around $500 million worth of the coin, and used the profits to invest in blockchain and crypto startups. In July last year, Ripple announced that it had reached half a billion dollars in total investments, thanks to its fundraising portion, Xpring.
Ripple’s sales in 2019:
Xpring has invested in many different crypto startups, including Dharma Protocol, Robot Ventures, Send Friend, and Kava Labs.
What does this mean for Ripple?
Ripple is officially the 2nd largest fintech company in the US – but what does that mean for the company? This places Ripple as the only truly blockchain-focused company on the list, and that’s huge. It goes without saying that Ripple is revolutionizing the fintech industry. Its suite of products and services is set to cater to both traditional and non-traditional financial institutions, and already it’s bringing those products to more than 300 banks worldwide.
Ripple has also thoroughly infiltrated the remittance market – targeting remittance in Latin America and the Asia-Pacific region.
Ripple is officially the 2nd largest fintech company in the US – with services already being harnessed by more than 300 banks around the world. Ripple underwent a fundraising event in December 2019, which has certainly further contributed to this milestone, but it’s also due to the fact that the company owns more than half of the total supply of XRP. Ripple is the only truly blockchain-focused company on the list, and it really shows how Ripple has expanded outside of the crypto world and into the mainstream. Ripple is bringing solutions to the entire financial world, and it just may take that number 1 spot in the next few years.
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