Ripple wants to Invest in the Development of New Use Cases for its Technology
This week, Ripple announced that it is looking to invest in startups that are able to develop more use cases for its XRP cryptocurrency. The company is planning to make a series of investments to attract development teams and technology startups, and use their expertise in developing apps that can bring value to XRP. According to coinmarketcap, Ripple is currently the third largest digital currency platform in terms of volume, right behind Bitcoin and Ethereum.
In an interview with Techcrunch, Ripple CEO Brad Garlinghouse stressed that the company is looking to develop various institutional use cases. Currently, the technology is still in an early phase and needs a lot more working use cases to be able to show its true potential. Notably, Ripple has been accused of being marketed as a tool for banks, but the only customers the company has been able to attract are cross-border payment services.
In order to extend its potential usability and its market integration, the company believes that a lot of new capabilities need to be developed.
Garlinghouse told Techcrunch:
“We would certainly partner with companies that are looking to use XRP in lots of different ways.”
Between December and January, Ripple saw its price going sky-high in sequence with Bitcoin’s price pump, which also led a lot of other cryptocurrencies reaching record-high prices. Moreover, the Ripple platform’s market cap reached its all-time high of over $128 billion. This did not last very long though, and right after the crypto-market crash in January, the volume dropped significantly to reach a new floor base of around $30 billion.
Given these extreme levels of volatility, it seems that Ripple’s architects are looking for ways to begin laying a solid and more stable foundation for their company. One sign of this is Garlinghouse revealing that the payment service invested in a San Francisco-based startup called Omni, which trades storage and rental services for goods. With both companies working together, they were able to attract a $25 million investment to the company in January. Along with the funding amount, the company also agreed to start using XRP within its service.
Ripple wants to attract banks
Garlinghouse told Techcrunch that Ripple is also focusing on having banks using its financial software solutions. The company has been trying to understand the reason why banks aren’t adopting its products. Up until now, the team hasn’t been able to come up with the answer, but Garlinghouse is positive that it won’t take long for them to start seeing banks adopting its technology.
Ripple believes this could happen because many of their solutions don’t even use the XRP Token. In any case, the payment service provider is completely open to new use alternatives for its technology. It also believes that a round of investment in the right projects might be the best way to bring the technology closer and make it more attractive for potential customers.
Ripple isn’t the only organization getting ready to utilize a highly-valued crypto token to propel its business. ICOs are also propelling the development of a lot of innovation in the sector. This, in turn, is driving Ripple to design a new strategy in which the business can thrive.
A few other projects are also on the move and using ICOs to raise capital to start its own developments. According to Techcrunch, last month, a group of blockchain groups joined forces and were able to gather $100 million which will be used to fund optimization development.
When asked about volatility, Ripple CEO told Techcrunch wasn’t worried about that and even considered it to be false information as the price asset is minimally stable.
Furthermore, Ripple acknowledged that it needs to start developing different use cases for its technology to make its platform and financial services more attractive to the banking sector. The company hopes to find the right partners to undergo this new phase of its development and expand its capabilities to alternative uses for XRP.