Ripple Joins $40 Million Fund for Web3 Infrastructure as Key Investor

Updated: 25 May 2023

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Dispersion Capital, an early-stage venture firm, has announced the establishment of a $40 million fund dedicated to the growing field of web3 infrastructure, with Ripple as one of the key investors.

Dispersion Capital’s aim is to invest in decentralization, a fundamental aspect of the Web3 concept. So far, the firm has funded Circle Ventures, another participant in the fund, and has recognized Patrick Chang, the founder and managing partner of Dispersion Capital, for his extensive expertise in the web3 sphere, gained through his leadership of Samsung Next’s blockchain investments. Circle Ventures commended Chang’s ability to identify talented and ambitious individuals within the Web3 space.

Dispersion Capital Aims to Drive Development of Functional and Scalable Web3 Applications

Dispersion Capital is positioning itself as a catalyst for advancing functional, scalable, and easily accessible decentralized applications. While the level of maturity in web3 infrastructure and the successful deployment of next-generation applications remain uncertain, Circle Ventures has recently issued a statement commending Dispersion Capital’s endeavors.

1/ Congratulations to our #CVPortfolio company @DispersionVC on their $40M fundraise! As investors, we’re excited about their vision for advancing cutting-edge infrastructure in a multichain, multi-currency, and multi-platform world. https://t.co/8YpmyIKPWc https://t.co/DOPHYgGf8L

— Circle Ventures (@circle_ventures) May 23, 2023

The firm expressed excitement about witnessing the impact Dispersion Capital will have on the Web3 ecosystem. Circle Ventures highlighted Dispersion Capital’s focus on addressing infrastructure gaps and its strong support for developers. Besides Circle Ventures, the new $40 million fund has garnered support from Faction, Lightspeed, Wemade, Alchemy Ventures, Hashkey, Forte, and other notable entities.

Pantera Capital Sells Stake in Bitstamp to Ripple

Pantera Capital, a hedge fund known for its early investments in Ripple and Bitstamp, recently made headlines by selling a minority stake in Bitstamp to Ripple. Bitstamp, one of the oldest cryptocurrency exchanges, has been a crucial gateway for Ripple, facilitating its entry into RippleNet.

The XRP community found this acquisition intriguing because of the connections between Pantera Capital, Ripple, and Bitstamp. XRP accounts for 30% of the trading volume on Bitstamp, and the XRP/Euro pair is prominent. Bitstamp is also the second-largest market for XRP, trailing only behind Binance. They revealed the details of this transaction in Galaxy Digital’s first-quarter report, which was released in early May.

?‍?Didn’t get much coverage, but;
In Q1 2023, #Ripple purchased Pantera’s share of Bitstamp, seen here in the advising companies earnings call (Galaxy). Not much mention in the press.
1/6https://t.co/m9wIErEa2B pic.twitter.com/ycJjVx8H1q

— WrathofKahneman (@WKahneman) May 23, 2023

Galaxy Digital, a prominent crypto investment management firm, advised Pantera Capital, the cryptocurrency-focused hedge fund, on selling its Bitstamp stake to Ripple Labs during the first quarter. Over the past year, Galaxy Digital’s investment banking team has achieved remarkable success, solidifying its position as a leading investment bank in the digital asset space.

Both Ripple and Bitstamp have issued no official statements regarding the matter. Although it appears logical for Ripple to acquire a stake in the Luxembourg-based exchange, the reasons behind their investment remain uncertain. Some conjecture suggests that Ripple’s strategic move may be linked to its services, such as Liquidity Hub or ODL. However, further information regarding the acquisition’s specifics and consequences will likely be disclosed.

At the Dubai Fintech Summit, Brad Garlinghouse, CEO of Ripple, made an exciting announcement marking the beginning of the week. During his speech, Garlinghouse emphasized Ripple’s ambitious plans to expand its offerings beyond liquidity provision and payment services. This significant shift in direction aims to drive the company’s growth and open up new avenues for development.