Blockchain Capital will invest the XRP cryptocurrency in blockchain-focused projects. This article originally ran in Term Sheet, Fortune’s newsletter ripple story index deals and dealmakers. 25 million investment in the form of its own cryptocurrency into a dedicated sidecar vehicle alongside Blockchain Capital’s fourth venture fund.
150 million to invest in equity and cryptocurrency assets. Now, Blockchain Capital says it accepted XRP, reportedly making it one of the first venture firms to accept capital calls in digital assets. The fundraise carved out the XRP funds into a separate special purpose vehicle called Blockchain Capital Parallel IV, which only accepts contributions in cryptocurrencies. XRP, the third-largest cryptocurrency by market cap after Bitcoin and Ethereum, is the name for both a digital currency and an open payment network. Users are able to efficiently send money globally using the blockchain. Blockchain Capital managing partner Bart Stephens.
If you’re scratching your head as to why a company would choose to accept capital in the form of a cryptocurrency, let’s remember what happened with storage startup Omni. 25 million in Series B funding, opting to accept the majority of the investment in XRP. 90 cents, meaning that the principal investment amount no longer held the same value. I followed up with him yesterday to see how he has navigated Ripple’s price fluctuations over the last few months, and he noted that he hedged against some of the volatility by converting a portion of the investment to USD. So to founders working on cryptocurrency-related projects, it makes sense. What safeguards will need to exist to prevent overexposure to cryptocurrency price volatility?
As for Ripple, keep an eye out for more deals like this one. This is the first fund that we’ve contributed to, and it won’t be the last. Sign Up for Our Newsletters Sign up now to receive FORTUNE’s best content, special offers, and much more. Fortune may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.