San Francisco-based fintech company Ripple continues to pump XRP into a growing ecosystem of adjacent startups – despite an ongoing legal complaint alleging that XRP is an unregistered security.
Announced Thursday, Ripple’s investment arm, Xpring, participated in the $4 million seed round for the in-browser payment processing startup Coil, spearheaded by former Ripple CTO Stefan Thomas. (Thomas and Ripple were the sole participants in the round.)
Xpring also announced Thursday that it gave a 1 billion XRP grant (worth roughly $265 million at today’s price) to Coil for help building a community of “creators, consumers and strategic partners,” according to a press release. The XRP granted to Coil came directly from “Ripple’s balance sheet of XRP,” according to Xpring Vice President Ethan Beard.
The funding has catalyzed an ambitious growth plan for Coil, including a $20 million investment in storied photo-sharing platform Imgur and an undisclosed amount in the video streaming startup Cinnamon.
The Coil platform allows subscribers to pay $5 a month so that when users consume content from a Coil-compatible website, the content creators – like musician Riley Q and the XRP-enthusiast blogger known as Hodor – automatically receive XRP payments or fiat bank transfers via dollars. Riley Q told CoinDesk she’s earned $3,400 worth of XRP so far.
“Some of our top creators are earning thousands of dollars a month already,” Thomas told CoinDesk, declining to specify how many users there are or the value of transactions facilitated.
Coil relies on the Interledger protocol, which Thomas told CoinDesk in May will eventually support cash-out options for other cryptocurrencies.