Ripple, the digital currency based financial technology services company has raised an additional $4 million in the current funding round. With the recent funding, the company’s total Series A fundraising currently stands at $32 million.
Ripple offers digital currency based financial technology solutions to banking and finance industry. Ripple’s main offering is the global financial settlement solution that enables cross border funds transfer in short time and a fraction of cost, which the banks otherwise incur over traditional channels. Ripple uses digital currency or tokens for fund transfer, over a proprietary blockchain.
Ripple’s new round of funding comes at the time when banks are exploring the potential use of blockchain technology in their everyday operations. Many multinational banks have already invested in research teams, working on analysing the feasibility of such solutions and identifying its advantages and disadvantages.
Ripple, with its bases in San Francisco, New York and Sydney is already working with Royal Bank of Scotland (RBS) and Commonwealth Bank of Australia to set up a test platform for international funds transfer operations. Both the banks are also part of a larger group of over 30 international banks working on another alternative blockchain based financial network for fund transfer between partner banks.
READ MORE: Commonwealth Bank of Australia Partners with Other Global Banks over Blockchain Technology
Ripple had earlier raised $28 million in Series A funding round. Those invested in Ripple includes CME Group and Seagate Technology. The additional $4 million is being invested by Santander Group through Santander Innoventures. Santander Innoventures fund is a $100 million dollar fund which has already invested in multiple companies like iZettle, Cyanogen and MyCheck. Santander Innoventures is used as an investment vehicle by Santander Bank to invest in companies that the bank wishes to partner with and explore new technologies. Ripple is the first digital currency/blockchain based technology company to receive funding from Santander Innoventures.
Santander had earlier mentioned in a report that the banks can potentially save close to $20 billion over a period of time by adopting blockchain technology. Being a secure and transparent system, blockchain will help banks save money on infrastructure and compliance costs.
READ MORE: The Fintech Paper 2.0 Discusses About Blockchain Technology in Banking Sector
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