What Is Ripple XRP
Ripple (XRP) is a digital asset and blockchain-based payment protocol designed for fast, low-cost global money transfers. XRP is the native cryptocurrency of the XRP Ledger (XRPL), an open-source blockchain launched in June 2012 by David Schwartz, Jed McCaleb, and Arthur Britto.
Ripple vs XRP: The Difference
It's important to distinguish between Ripple the company and XRP the cryptocurrency. Ripple Labs is the San Francisco-based company that developed the XRP Ledger and builds enterprise payment products. XRP is the independent digital asset that powers those payments. XRP can be held, traded, and used independently of Ripple Labs.
In 2012, David Schwartz, Jed McCaleb and Arthur Britto launched the XRP Ledger with its native currency XRP as a faster, more energy-efficient alternative to the Bitcoin blockchain. CoinMarketCap
How the XRP Ledger Works
The XRPL uses a Federated Consensus mechanism — not proof-of-work or proof-of-stake. Independent validators (150+ worldwide, operated by universities, exchanges, and businesses) agree on transaction order and validity. Transactions settle in 3–5 seconds with ~1,500 transactions per second capacity. Each transaction costs a fraction of a cent, and fees are burned, gradually reducing total XRP supply over time.
XRP Use Cases
XRP's primary use case is as a bridge currency in Ripple's On-Demand Liquidity (ODL) model, enabling institutions to move value between currencies without maintaining large pre-funded accounts in multiple countries. Beyond payments, the XRPL supports a built-in decentralized exchange, automated market maker (AMM), NFTs, and tokenized real-world assets. In June 2025, an EVM-compatible sidechain launched, enabling Solidity smart contracts with XRP as gas.