After witnessing a tremendous year in 2019, Ripple blockchain firm is now the second largest fintech company in the United States in terms of valuation, while Coinbase is also taking the third place.
2018 did not really bode well for all industries in the United State due to the 9% drop in the total VC funding, however, it was a boom time for Fintech industry in the country as financial technology startups rolled on with an upsurge of $5 billion venture capital funding compared to 2018, a report by Forbes has said.
In 2019, private U.S. fintech companies recorded $18 billion capital funding while 2018 presented $13 billion. Rather than the $6 billion average valuation used in 2018 to shortlist the ten most valuable FinTech company, $9 billion was the average for 2019’s valuation.
Ripple among a number of companies saw tremendous growth in 2019. After raising $200 million in an investment round, the value of the Silicon Valley company surged to $10 billion. Another company with a huge surprise is the San Francisco-based startup Chime, a digital bank whose value surged from $1.3 billion to $5.8 billion within nine months.
Stripe, an online payment processing company with $22.5 billion valuation, was ranked the most valuable company. Last year September, after Stripe announced the release of a lending arm christened Stripe Capital, CNBC published a report, revealing that Stripe is the world’s most valuable company.
Stripe allows customers from Amazon, Facebook and some other website, make online payments easily.
Ripple Takes the Lead
Ripple is the second most valuable FinTech company according to the latest release. The company is making effort to champion the remittance industry with its high-end technology, especially with the just-released On-Demand Liquidity, which is now a household name in different remittance corridors.
After getting a 10% stake in MoneyGram in a two years deal with $50 million, MoneyGram stated it is using XRP to execute 10% of its cross-border transactions between US and Mexico. Ripple’s XRP liquidity along the Mexican, Philippine and Australian corridor has so far witnessed a tremendous rise in recent times.
Coinbase, a US-based cryptocurrency exchange that boasts of being safe and regulatory-compliant, also did well last year, taking the position of the 3rd most valuable FinTech company in US. Coinbase is worth $8.1 billion dollars.
About 33% of the latest top ten most valuable list was made of crypto-related firms. Robinhood made the list as the 4th most treasured company with $7.6 billion worth.