On Wednesday, Ripple grew by over 9 percent, coming within 10 cents of its all-time high.
An online translation of a release revealed that the said gains followed news that SBI Holdings, a Tokyo-based financial services company, and SBI Ripple Asia, its subsidiary, revealed the establishment of a “consortium” with various Japanese credit card companies in order to utilise blockchain technology. Ripple and SBI Holdings established SBI Ripple Asia in January of last year. It was not clear what the extent of the involvement of Ripple would be in the new consortium.
According to CoinMarketCap, the digital currency grew 9.2 percent to $1.30, making it the third-largest cryptocurrency in terms of market capitalisation at $50 billion, behind bitcoin and Ethereum.
The website revealed that on Friday, Ripple gained a record high of $1.38.
On the other hand, on Monday, Bitcoin and Ethereum were down.
Ripple is officially the name of a start-up that is based in San Francisco that is utilising blockchain technology in order to develop a payments network for digital asset exchanges, banks, and other financial institutions. Network participants utilise a digital coin that is called XRP for transactions.
The start-up holds 61 percent of the 100 billion XRP that is in existence. At the prices on Wednesday, that gives Ripple around $79.3 billion worth of the digital currency.
On Wednesday, Brad Garlinghouse, the Ripple CEO, said on the ” Squawk Alley” of CNBC: “We are going to invest in the ecosystem to both help accelerate the adoption of Ripple’s technology.”
One of the selling points of Ripple, as laid out on the website of the company is the 4-second settlement speed of the XRP, versus the more than 2 minutes for the Ethereum and over one hour for Bitcoin.
Up by over 20,000 percent after ending last year at 0.64 cents, Ripple is considered to be one of the best performing in 2017. In comparison, Bitcoin has gained around 1,500 percent and ethereum is up by roughly 9,200 percent in 2017, according to CoinMarketCap.
“One of the things we all have to remember is the value of a token over the long term is really going to be driven by its utility,” said Garlinghouse. “There’s no question there’s a lot of hype in this system.”
According to Crunchbase, Ripple has raised $93.6 million from investors including Standard Chartered Bank, CME Ventures, Andreessen Horowitz and Alphabet’s GV, formerly Google Ventures.
Mike Arrington, the founder of TechCrunch, also revealed at the end of last month that he is launching a “cryptofund” amounting to $100 million that will be denominated in XRP.
The news of a consortium with Japanese credit card companies on Wednesday follows an announcement that was made earlier this month that various South Korean banks and Japanese banks are testing the systems of Ripple for cross-border payments.
According to the company, over 100 financial institutions use the blockchain network of Ripple. In November, Ripple said that Santander and American Express FX International Payments would make use of the network of Ripple for cross-border payments between the United States and the United Kingdom.