Ripple (XRP)
A fast, low-cost digital asset built for cross-border payments and liquidity.
Overview
XRP is the native digital asset of the XRP Ledger, designed for fast and inexpensive cross-border value transfer. It is closely associated with Ripple Labs, which uses the XRP Ledger to power payment and liquidity solutions for financial institutions.
Key Features
- Speed: 3-5 seconds per transaction
- Fees: Extremely low — typically a fraction of a cent per transaction
- Security: High — secured by a decentralized set of validators using a unique consensus protocol
- Consensus type: Federated Consensus (XRP Ledger Consensus Protocol)
- Smart contracts: Limited — supports simple smart contract-like features via Hooks and sidechains
- Ecosystem size: Moderate — focused on payments and liquidity rather than general dApps
History & Background
Ripple launched in 2012, created by Arthur Britto, David Schwartz, and Ryan Fugger. To enable fast, low-cost cross-border payments and liquidity for banks and payment providers
- 2012: The XRP Ledger launches and XRP is created
- 2013: Ripple Labs (formerly OpenCoin) is founded to commercialize the technology
- 2020: The US SEC files a lawsuit against Ripple alleging XRP is an unregistered security
- 2023: A US court rules that XRP sales on public exchanges did not constitute securities offerings
How It Works
The XRP Ledger uses a unique consensus protocol where a trusted set of validators agree on transaction order without energy-intensive mining. XRP serves as a bridge currency, enabling fast conversion between different fiat currencies with minimal slippage.
Consensus Mechanism
The XRP Ledger uses the Federated Consensus Protocol, where a network of independent validators — many run by banks, exchanges, and universities — vote to confirm transactions, reaching agreement in seconds without mining.
Tokenomics
- Total supply: 100 billion XRP (fixed maximum supply, no new issuance)
- Circulating supply: Approximately 58 billion XRP
- Issuance schedule: No new issuance — all XRP was created at launch; supply decreases slightly as transaction fees are burned
- How new coins are created: All 100 billion XRP were created at the XRP Ledger's genesis in 2012
- Utility: Bridge currency for cross-border payments, liquidity provision, transaction fees on the XRP Ledger
Use Cases
Cross-Border Payments
Used by payment providers to settle international transfers quickly and cheaply
Liquidity Bridging
Acts as an intermediary currency to convert between fiat pairs without holding both
Remittances
Enables low-cost money transfers for individuals across borders
Tokenization
The XRP Ledger supports issuing and trading other tokens and assets natively
Strengths
- Very fast transaction settlement (3-5 seconds)
- Extremely low transaction fees
- Energy-efficient consensus mechanism compared to mining-based chains
Limitations
- History of regulatory uncertainty, including a multi-year SEC lawsuit
- Validator set, while decentralized, includes many entities linked to Ripple Labs
- Smart contract functionality is limited compared to platforms like Ethereum
Supported Networks
- XRP Ledger: The native, purpose-built ledger for XRP and tokenized assets
- XRPL Sidechains: Emerging sidechains adding smart contract (EVM) compatibility
How to Store It
XRP can be stored in ledger-native wallets (e.g. Xumm), hardware wallets, or held on regulated exchanges. Learn more on our wallets guide.
Top Exchanges to Buy, Trade & Sell Ripple
Platforms that support XRP, ranked by rating and featured status.
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