The San Francisco-based company announced Thursday $ 200 million in financing to increase the adoption of XRP.
Ripple intends to redefine cross-border payments by integrated banks, financial institutions and external payment operators. XRP, the company's native token will be fundamental in this regard.
At least that is the idea that the global investment firm Tetragon bought while helping Ripple raise $ 200 million in a Series C financing round.
XRP adoption is the main focus
Due to the parabolic rally of 2017, the XRP rose in price and ranked third in the cryptocurrency ranking. Although the Ripple token has lost much of its value in the last two years, XRP still marks an important focal point in the company's business.
That is why, in addition to other patented offers, Ripple has significantly promoted XRP, projecting the symbolic image as the de facto "bridge currency" for global money transfers.
According to CEO Brad Garlinghouse, in an interview with Fortune:
"XRP helps customers free up capital that they would otherwise have to park as reserves at local banks."
Ripple recently bought a stake in Moneygram, which CEO Garlinghouse claims to use XRP for "15% of his transfers to Mexico." He also mentioned that several Ripple clients use digital assets significantly for transfers of Australian dollars, Philippine pesos and Brazilian reals (to a lesser extent).
Garlinghouse has not commented on Ripple's earnings or earnings so far. However, it maintained the position that the accelerated adoption of XRP is the company's main focus.
Of course, the company earns money by selling its money transfer software, but it seems to be heavily invested in the idea of increasing the use of XRP, as this would improve the token price and allow Ripple to «Benefit from the sale of its reserves. «
Ripple mentioned in the US invoice
Ripple and XRP were mentioned as weekly developments in global payments in a remittance insurance invoice proposal. The document on remittance transfers under the Electronic Funds Transfer Act (Regulation E) is still being discussed until January 2021.
Ripple's payment network was seen as the next frontier for the remittance market, also mentioned as a system that could accurately predict the funds that will be received.
Despite the unbridled layoffs in the cryptocurrency industry, Ripple seems unperturbed and seems to be on the road to a «aggressive expansion«. This is quite evident from the latest statistics, which show that the company has expanded its staff to 534 people in offices around the world.
CEO Garlinghouse, speaking about the financing round, said "there really is no money." Although, it provides a good "balance flexibility."