Ripple Labs is poised to raise $30 million in a funding round that would include investors such as Andreessen Horowitz, Google Ventures, IDG Capital Partners and other existing investors. Ripple Labs is known for developing a cryptocurrency based technology that enables international money transfer between individuals. The company’s primary offerings include the Ripple protocol and the Codius smart contract platform. With the new funding round coming up, this crypto upstart could reach a valuation of $100 million, as reported by The Wall Street Journal.
Ripple Labs had earlier raised $3.5 million from a number of investors including Bitcoin Opportunity Fund, Camp One Ventures, Core Innovation Capital, FF Angel, lightspeed Venture Partners, Vast Ventures and Venture51.
The company has successfully established a decentralized payments network that validates transactions using the digital currency technology. Ripple is further working towards reducing the costs and time periods involved in enabling cross border payments across multiple currencies. The company focuses on a B2B model instead of B2C and targets banks and remittance providers for offering its services.
Some banks that are part of the Ripple Network include US based Cross River Bank and CBW Bank as well as Germany based Fidor Bankin. The Ripple system is ideal for smaller banks as they can avoid the transaction fees being imposed by larger banks on which they depend for money transfer services. In terms of technology, Ripple Labs is leveraging distributed verification systems that also form the base infrastructure for digital currencies. These distributed systems will help the company in achieving its goal of reducing costs and time frames.
These verification systems can be considered as distributed ledger systems and are attracting investors who are looking for more practical and mainstream applications of such systems. The use of such ledger systems differentiates the Ripple protocol from others who usually rely on a block chain. These systems can also be used to transfer ‘IOUs’ between different parties who trust the same issuer or ‘gateway’. Many bankers are now considering adopting digital systems for real-time settlements and Ripple is working towards fulfilling this growing need.