The executive chairman and co-founder of Ripple, named Chris Larsen, on Thursday, has announced to the attendees at the San Francisco State University celebration that he, his wife Lyna Lam, and the non-profit foundation Rippleworks, would donate $25 million in XRP crypto to the university.
The largest crypto donation made to a university in the U.S.
The university made the announcement about this news on Friday, saying that the Rippleworks bequest was the largest crypto donation which was ever made to a university in the United States.
As it has been reported, Ripple or XRP was up almost 13% ahead of the open of European markets on Friday. The Rippleworks donation to the SFSU was a continuation of the University Blockchain Research Initiative of Ripple, announced in June of last year. The UBRI actually committed $50 million in resources which included funding, subject matter expertise, as well as technical resources to 17 institutions all over the world.
The funding is going to be allocated to the College of Business of the university, to support students in becoming change-makers of local, as well as global entrepreneurial and fintech ecosystems.
Leslie E. Wong, who is the president of the San Francisco State University, said that the groundbreaking gift is going to position the College of Business as an evolving distinctly diverse, as well as the industry-relevant epicenter of business entrepreneurship and innovation.
Changing the name in honor of the donation
The donation is also going to fund two new permanent faculty chairs, the Rippleworks Endowed Chair for Innovation and Entrepreneurship, as well as the Lam-Larsen Endowed Chair in Financial Technology, according to the separate statement which was released on Friday by the College of Business. The chairs are going to help focus the college on entrepreneurship, financial technologies, commercial incubation, and digital currencies too.
In honor of this donation, the university also plans to change the college name to the Lam Family College of Business, and just waiting the approval from the California State University Board of Trustees.
The university even raised funds through its “BOLD Thinking” funding campaign, which reached more than $136 million of its target of $150 million. The pace of the campaign also exceeded the people’s expectations, but not its reach, according to a campaign chair named John Gumas.
In the year 2014, Larsen committed to donating 7 billion XRP to an unnamed charitable cause amid controversy over some large sums of XRP which were awarded to the founders of Ripple.
XRP, which is the third-largest crypto in the world by market cap, is right now trading at almost $0.36, mostly unchanged on the day.
The dangers ahead of the donation
In this age of cryptocurrency giving, charities should proceed with caution before accepting a crypto donation. According to one report, some steps organizations may take ahead of acceptance are:
Review and update the gift acceptance policy of the organization;
Step up systems, policies, accounts, as well as procedures to accept, and secure the class of asset;
Adopt accounting policies, as well as adjust the chart of accounts as necessary to properly account for this class of asset if it can’t be readily converted to cash;
Understand, as well as implement systems for gathering information needed to comply with all of the reporting requirements connected with accepting the class of asset.
The former head of CME Ventures, named Rumi Morales, cautioned against charities rushing to accept cryptocurrency donations. Morales said that if people only want to jump in because they have heard the buzz about it, she is going to caution anyone against accepting buzz over real money. She added that Bitcoin, together with digital currencies, may be taken at some type of value, but as we saw, it can be very volatile.
Regardless of the short-term effects of the Ripple donation, the end game envisioned by the University Blockchain Research Initiative is hopefully going to move toward a broader understanding of the blockchain and crypto and even realize the promise of the technology.