US-based provider of global financial settlement technology Ripple has received a $4 million investment from Santander in its recent Series A funding round. Overall, Ripple has raised $32 million.

Mariano Belinky, moved to Santander InnoVentures from McKinsey to spearhead the fintech investment

Mariano Belinky moved to Santander InnoVentures from McKinsey to spearhead the fintech investment

The investment was made by Santander’s fintech venture capital fund, Santander InnoVentures, set up last year with a remit to spend $100 million on companies specialising in payments, marketplace lending, e-investment advisory, client and risk analytics, and digital delivery of financial services.

Ripple’s CEO and co-founder Chris Larsen says that InnoVentures is a ‘natural fit’ as it has ‘demonstrated support for real-time international payments’.

Mariano Belinky, managing partner of InnoVentures, explains the decision to pledge money to Ripple: ‘We believe that distributed ledger technology is one that will significantly disrupt a number of processes within banking. While we’ve identified a dozen and a half or so applicable use cases for the technology, we decided to focus on the considerable applications across the international payments space primarily, as this was where we saw it delivering most value to Santander customers in the near-term. From a regulatory and maturity perspective, we saw Ripple as the best partner to move ahead with in this.

‘Part of Santander InnoVentures’ mission is to invest in technologies that can bring a broader benefit to the group and our 100 million customers around the world. So you can be sure that we are already looking hard at all the potential use cases for Ripple technology inside the bank.’

By Tanya Andreasyan

Santander’s fintech investment fund is profiled in detail in the June 2015 edition of the IBS Journal.

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by IBS Intelligence