Ripple Seeks to Broaden the XRP Ecosystem with ‘Xpring’ Initiative
Ripple is looking to expand the use of XRP beyond its payment and finance focus with the launch of a new venture capital fund, Xpring.
Xpring is a venture capital fund which aims to provide financial backing to companies that develop products and services for XRP. While Ripple’s XRP is currently the third-largest cryptocurrency by market capitalization, its use has been largely confined to financial institutions making cross-border payments.
With the Xpring program, Ripple seeks to expand its reach, bringing new business sectors into the ecosystem through a series of investments, grants and incubation.
“As a major contributor to the XRP Ledger codebase and large holder of XRP, we often hear from entrepreneurs and developers that they’d like support in one form or another to help them with their XRP-related projects,” the company said in a statement.
“As one of the few blockchain companies with traction for a non-speculative use case, we feel we’re uniquely positioned to support entrepreneurs in a meaningful way.”
Ripple has hired Ethan Beard, former director of Facebook Developer Network, to lead Xpring and Ripple’s developer program. The division won’t use ICO or token investments, nor host ICOs on its blockchain, to grow.
Ripple has announced a few projects it has already funded including Blockchain Capital and Omni.
While the new project will bolster the adoption and increase the liquidity of XRP tokens, it raises some questions as Ripple has long maintained it doesn’t own or control XRP, even though it holds more than 60 percent of the total XRP tokens in an escrow account.
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