The digital money platform known as Uphold announced today, January 25th, that they would be receiving an almost $60 million investment from the former Federal Reserve Senior analyst and Ripple chief risk officer Greg Kidd. After putting this investment into the company, Kidd has stated that he will join the board of directors for the company, to help further their research and development team. Kidd has also notably invested in other successful startups such as Coinbase, Square and Twitter.
The investor recently stated what the company will do in regard to the scalability of the coin and how it will remain compliant with customers. He stated that the company will hold around 20% in crypto holdings, which will protect the users from the potential of losses from volatility or other issues. He stated that “Because of the strength of Uphold’s compliance and controls, I’m willing to pledge a certain amount of my balance sheet, or the balance sheet of my venture company … as a reserve. That means that if there was some adverse effect at Uphold that might put it otherwise in a position of operating as a fractional reserve, this is like an insurance program that will make sure that user balances are protected.”
Don’t Forget to Join our FREE Text list! From Your Cell Phone Text the Phrase CRYPTO to 474747
A spokesperson for the company stated that the licensing revenue and development team will have access to 20% of the funding. This funding will be used to increase the amount of supported cryptocurrencies on the platform. 45% of the funding will go to equity for the company, and the other 35% will be put into the reserve balance sheet for the company. The hopes are high that this investment will help the company to help further legitimize an industry that has in the past, gotten a bad rap.