What Is XRP?

One of the largest cryptocurrencies by market capitalisation, XRP is used by financial institutions, corporations, and end users across the globe for fast payments. Learn more about this altcoin.

A Brief History of XRP

From its inception, XRP was designed to address inefficiencies in global payments, prioritising transaction speed, cost-efficiency, and scalability. The conceptual groundwork for XRP began in 2004 with Ryan Fugger’s RipplePay project, and the XRP Ledger (XRPL) itself was developed in 2011 by engineers David Schwartz, Jed McCaleb, and Arthur Britto, officially launching in 2012. Ripple (originally OpenCoin, later Ripple Labs) was founded shortly thereafter to develop financial solutions that utilise the XRP Ledger.

Ripple vs XRP: Understanding the Distinction

It’s a common misconception to use ‘Ripple’ and ‘XRP’ interchangeably. Ripple is a fintech company that builds enterprise blockchain solutions. XRP is the digital currency used within some of Ripple’s products, but it can also be used independently on the XRPL.

Ripple contributes to XRPL’s development and operates a handful of validators, but it does not own or control the ledger.

What Is the XRP Token?

XRP is the native digital asset of the XRP Ledger, a decentralised, open-source blockchain designed specifically for fast, low-cost cross-border payments. Unlike cryptocurrencies like Bitcoin, which are primarily used as stores of value or mediums of exchange in peer-to-peer environments, XRP was created to complement existing financial infrastructure, serving as a bridge currency in global payment systems.

Ripple, the company behind enterprise solutions that utilise the XRPL, leverages XRP in several products to improve liquidity and settlement efficiency. However, XRP and Ripple are distinct: Ripple does not own the XRP Ledger, and XRP can be used independently of Ripple’s technologies.

How Does XRP Work?

The XRP Ledger uses a consensus protocol known as the XRP Ledger Consensus Protocol, based on a Federated Byzantine Agreement (FBA) model. Unlike Bitcoin’s Proof of Work or Ethereum’s Proof of Stake, XRPL does not require mining or staking. Instead, a network of independent validators reaches consensus every three to five seconds.

The primary objective of the XRP Ledger Consensus Protocol is to reach a consensus on a specific set of transactions to be added to the subsequent version of the XRP Ledger. These transactions are then applied in a clearly defined sequence, and the results are verified to ensure that all parties have arrived at the same outcome. Once this occurs without issue, the ledger version is considered to be validated and final. According to XRPL, the network can work with over 80% of trusted validators.

Each validator node on the XRPL maintains its own Unique Node List (UNL), a list of trusted nodes to validate transactions. UNL is a critical component of XRPL’s security model, and it helps ensure that the XRP Ledger remains as tamper-proof and resistant to attacks as possible.

While Ripple publishes a default UNL, each validator node can choose their own UNL, usually based on a default set provided by a trusted publisher. Over 150 validators globally — including universities, exchanges, and individuals — currently participate in securing the ledger.

What Is XRP Used For?

XRP is used as a digital currency on the Ripple network to facilitate cross-border payments and remittances. When someone wants to send money over the network, they can use XRP to facilitate the transaction.

Below are a few of the main use cases for XRP.

On-Demand Liquidity (ODL)

ODL is Ripple’s flagship solution for cross-border payments, using XRP to bridge currencies in real time. For example, a financial institution converts fiat currency into XRP, transfers it through the XRPL, which converts it into the destination currency in seconds.

This eliminates the need for pre-funded accounts (nostro/vostro), and reduces costs and settlement times for financial institutions.

Remittances

XRP is widely used in remittance corridors, particularly in Asia-Pacific, Latin America, and the Middle East, where traditional services often involve high fees and long delays. Through XRP and Ripple’s payment infrastructure, remittance providers can facilitate near-instant, low-cost cross-border transfers, even to underbanked regions. 

An example is how SBI Remit uses XRP as a bridge currency to facilitate fast and cost-effective remittances.

CBDC Development

Ripple has developed a central bank digital currency (CBDC) platform, a private version of the XRP Ledger specifically tailored for sovereign digital currency issuance. This platform supports high throughput and secure deployment of CBDCs, enabling governments to issue and manage digital fiat in compliance with regulatory and monetary frameworks. As of 2025, countries in Asia-Pacific and Latin America are actively engaged in pilots or proof-of-concept initiatives using Ripple’s CBDC technology.

Timeline of the Ripple vs SEC Legal Battle

At the heart of the legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC), which ran for more than four years, was whether XRP constituted an unregistered security. It was one of the most closely watched regulatory cases in crypto history. 

The outcome had a significant impact on Ripple’s future, and also set a precedent for how digital assets are regulated in the United States.

The settlement removes a major regulatory overhang and reopens XRP access to US platforms.

Ripple USD (RLUSD): Ripple’s Stablecoin

Launched in December 2024, RLUSD is a fully regulated, US dollar-backed stablecoin issued by Ripple. It operates on both the XRP Ledger and Ethereum.

• Approved by the New York Department of Financial Services (NYDFS).
• Fully backed by USD deposits, US Treasuries, and cash equivalents.
• Designed for use in enterprise payments, decentralised finance (DeFi) protocols, and asset tokenisation.
• An advisory board of former central bankers and financial regulators supports RLUSD’s governance.

XRP Tokenomics and Market Position

XRP has a fixed maximum supply of 100 billion tokens, all of which were pre-mined at the network’s launch, with approximately 58.55 billion XRP in circulation at the time of writing. This ranks XRP as one of the largest cryptocurrencies by market cap, with valuations ranging from $149 billion to $257 billion depending on methodology.

Its all-time high (ATH) was $3.84, recorded on 4 January 2018.

How to Buy XRP on Crypto.com

Purchasing XRP is straightforward with the Crypto.com App, which supports more than 400 cryptocurrencies, including Bitcoin, Ethereum, meme coins, established altcoins, and stablecoins.

1. Download the Crypto.com App, available on the Apple App Store and Google Play. 
2. Follow the on-screen instructions to complete the sign-up and identity verification process. 
3. Fund the account via bank transfer (this may take one to three days to clear) or through instant methods like debit/credit card or Apple Pay. The Crypto.com App supports more than 20 fiat currencies, including USD, EUR, and GBP.
4. Once the account is funded, users can purchase XRP and other cryptocurrencies directly through the App.

Conclusion

XRP is one of the most established digital assets in the crypto space, with proven utility in cross-border payments, regulatory clarity in the US, and an expanding ecosystem through RLUSD and CBDC initiatives. As Ripple strengthens its institutional presence and the XRP Ledger continues to evolve, XRP is positioned as a core asset for the future of global finance.

Due Diligence and Do Your Own Research

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Although the term ‘stablecoin’ is commonly used, there is no guarantee that the asset will maintain a stable value in relation to the value of the reference asset when traded on secondary markets or that the reserve of assets, if there is one, will be adequate to satisfy all redemptions.

Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.