Ripple is the fourth most valuable Fintech company in the world

• According to a new investment report, Ripple is the fourth most valuable Fintech company in the world, ahead of Coinbase and Robinhood.
• The Coronavirus has boosted e-commerce and with it the use of payment solutions, such as Ripple’s On-Demand Liquidity.

Ripple provides payment solutions for businesses to quickly deliver low-cost cross-border transactions. The firm not only focuses on big financial giants, but has recently changed its focus to support SMEs in micro transactions. According to a new report, Ripple’s services and focus make it one of the most valuable Finnish tech companies in the world.

Ripple ranks 4th among the most valuable Fintechs in the world

According to a new report from CBInsights, Ripple ranks fourth on a list of Fintech companies, each worth over $ 1 billion. Ripple received a $ 10 billion business valuation, behind Paytm One97 ($ 36 billion), Stripe ($ 39.4 billion), and Lufax ($ 16 billion). The table below shows in detail all the companies evaluated and their location.

Source: https://www.cbinsights.com/reports/CB-Insights_Fintech-Report-Q2-2020.pdf

Other well-known heavyweights in the industry are Coinbase ($ 8 billion), Robinhood ($ 7.6 billion), Toast ($ 4.9 billion), and Circle ($ 3.5 billion). Ripple raised more than $ 200 million in a funding round last year to further expand and adapt its services.

Additionally, Ripple has invested more than $ 50 million in remittance giant MoneyGram, purchasing a total of more than 10% of all common stock. MoneyGram uses, among other things, RippleNet, so that Ripple is driving the further adaptation and use of XRP through this partner. Additionally, Ripple has grown to over 500 employees worldwide and has more than 300 partners on RippleNet.

Due to unfavorable location conditions in the United States of America, Ripple is currently considering moving its headquarters to London, where XRP is clearly classified as a commodity rather than a stock. More recently, Ripple opened a branch in Dubai, as the regulatory environment is well suited to accelerate its continued presence in this area and in Asia.

The company generates a large portion of its revenues through XRP sales to institutional investors. Ripple pledged to freeze 55 billion XRPs in an escrow account in 2017 and release one billion XRP per month for sale. According to the third quarterly report, both XRP sales and ODL transaction volumes have increased by more than 100% globally.

In an interview with the Financial Times, CEO Brad Garlinghouse said that XRP is part of the company’s cash flow, but that there are several other revenue streams:

Well, XRP is a source. I don’t know how to answer you because if you take away the revenue from the software, it will make us less profitable. If you’ve taken all of our XRP away from us, that makes us less profitable. So I don’t think of it as a thing …

We would not be profitable or positive cash flow [without selling XRP], I think I said that. Now we have it.

Coronavirus drives adaptation

The report goes on to state that the crown pandemic was a decisive factor in the adjustment of the e-commerce market and therefore also in the acceptance and diffusion of new technologies such as blockchain. John Collison, co-founder of Stripe, describes that there has been a huge shift from the offline to the online economy. The following diagram shows this development in detail.

Source: https://www.cbinsights.com/reports/CB-Insights_Fintech-Report-Q2-2020.pdf