Ripple named second-largest US fintech firm by Forbes
By: Daniel Webber
Prestigious list from Forbes places Ripple high in terms of valuations
In 2019 the firm sold $500 million of XRP, using proceeds to expand and invest $50 million in MoneyGram, which now uses XRP in 10% of its cross-border transactions to Mexico”, said Forbes
And the list also explored other issues and firms, such as rising valuations and digital banking
US cross border payments service Ripple has been named the country’s second largest fintech firm.
The company, which is known for using blockchain to provide liquidity to banks and other financial services institutions, was given a value of $10 billion US dollars by the firm.
This represented a “stunning rise in value”, according to Forbes.
The entry on the list, which was titled “The 10 Biggest Fintech Companies In America 2020”, namechecked the firm’s well-known CEO, Brad Garlinghouse.
And it also pointed out three co-founder names associated with the online money transfer firm, although these are less well-known.
These included executive chairman Chris Larsen, as well as Jed McCaleb and Arthur Britto.
In the entry for Ripple, Forbes went on to outline some of the biggest achievements of the firm – which are numerous.
It “facilitates international payments, including with a cryptocurrency created by its founders, XRP, for 300 institutional clients, including Standard Chartered and Santander,” it said.
“In 2019, sold $500 million of XRP, using proceeds to expand and invest $50 million in MoneyGram, which now uses XRP in 10% of its cross-border transactions to Mexico,” it added.
Ripple has had a highly successful year or two, and has established itself as a key part of the online money transfer ecosystem around the world.
One of its main offerings is on-demand liquidity, or ODL, which can improve the speed of money transfer.
It can also offer liquidity using its cryptocurrency, called XRP.
According to the Ripple website, the firm has over 300 financial institutions as partners. Major international money transfer names such as MoneyGram use the service, while banks like Santander and the Siam Commercial Bank are also associated with it.
The firm was set up in 2013.
The list also explored the changing nature of fintech valuations, and explained that Ripple’s rise was in some ways part of a larger trend.
“The biggest fintechs got bigger,” it said.
“Among the companies on this year’s list of the ten most valuable, the average valuation is $9 billion. Last year it was $6 billion.”
And in further good news for the online money transfer sector, it was revealed that Chime – a digital bank – had gone up in value too.
“One of the largest surprises was digital bank Chime, whose valuation increased from $1.3 billion to $5.8 billion in nine months,” Forbes explained at the start of the piece.
Ripple is just one of many exciting developments on the cryptocurrency scene. To learn more about it, head over to our news pages to stay up to date.
Source: FX Compared