Digital currency payments processing company Ripple Labs Inc. has raised $28 million in Series A funding. We had reported in February that the company was about to raise $30 million in funding. Ripple closed the deal with a slightly lower amount than stated. The investors involved in the round were IDG Capital Partners, CME Group, Seagate Technology and a few new investors including AME Cloud Ventures, ChinaRock Capital Management, China Growth Capital and Wicklow Capital.
The funding supports Ripple to work on its vision to enable an Internet of Value (IoV) by powering the real time, secure settlement of funds for banks and multinational companies worldwide.
Ripple Labs’ CEO and Co-founder, Chris Larsen states, “Financial institutions, market makers and corporations are laying the foundation for this Internet of Value, contributing and providing liquidity for global payments. With investors like CME Group and Seagate joining the fold, we’re well positioned to accelerate adoption amongst these key customers.”
Ripple is a distributed payments technology that connects the world’s divergent financial networks to securely transfer funds in any currency, that too in real time. Banks, money transmitters and clearinghouses can use Ripple as an alternative to correspondent banking to facilitate straight-through processing with no need for reserve funding.
Ripple focuses on working with international banks to transform the international money transfer business through the fast and frictionless trading of its digital currency tokens in exchange for fiduciary currency. Chris Larsen states, “Our mission is to modernize decades-old payments infrastructure with IP-based technology so value moves around the world as freely, easily, securely and transparently as information on the web today.”
The funding will further help Ripple Labs continue to grow its presence internationally. Cross River Bank and CBW Bank of the US, Fidor Bank of Germany and cross-border payments service provider Earthport have already announced the integration of Ripple. Key Chinese investors in the investment round will help Ripple Labs drive Ripple adoption in Asia. Li Feng, partner at IDG Capital Partners (early investors in Baidu, Tencent, Xiaomi and CreditEase), will also join Ripple Labs’ Board of Directors.
About Ripple Labs:
Ripple Labs is a global leader in distributed payments technology. The team supports the adoption of Ripple, a technology that powers free and instant exchange of anything of value, and the creation of an Internet of Value (IoV).
Named as one of 2014’s 50 Smartest Companies by MIT Technology Review, Ripple Labs’ team of 100 is comprised of deeply experienced cryptographers, security experts, distributed network developers, Silicon Valley and Wall Street veterans. They contribute code to the open-source software, as well as develop tools for and recruit financial institutions and payment networks to use Ripple.