Digital currency startup Ripple Labs announced today that it has closed a new $28m Series A funding round.
The company drew support from a mixture of new and existing investors, including the venture arms of US futures and options exchange CME Group and data storage firm Seagate Technology.
The company said that it planned to use the funds to fuel international expansion efforts, most notably in Asia. In a statement, Ripple Labs CEO Chris Larsen said the new support would also facilitate access to liquidity in the Ripple system, thereby enabling new customers to come onboard, adding:
The funding disclosure comes weeks after Ripple Labs was fined by the Financial Crimes Enforcement Network (FinCEN) for violations of the US Bank Secrecy Act.
In its announcement, the company highlighted its intention to focus on growth in Asian markets. Notably, Li Feng of IDG Capital Partners will be joining Ripple Labs' board of directors.
“Growing their influence in key regions like Asia will help activate new markets, further accelerating the use of Ripple as a real-time settlement protocol by the world’s leading financial institutions," Feng said in a statement.
Commenting on the deal, Seagate senior vice president of finance and treasury Dave Morton took a more global stance, noting that his company sees the opportunity in supporting global transfer mechanisms that can help reduce friction between parties.
"Banking and corporate applications are just the tip of the iceberg for a technology like Ripple, and we're excited to support the team's pursuit of those opportunities," he noted.
Group of business people image via Shutterstock
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