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What is XRP? The ultimate guide to XRP

See how the Ripple blockchain platform aims to transform the global payments industry.

Andrew Munro

Updated Jul 3, 2021. What changed?

XRP is a cryptocurrency used by Ripple, which is a cross-border payments company looking to rival the likes of Visa, Western Union and overhaul international payments using blockchain technology. This guide will explain how XRP works, how Ripple uses XRP and show you how to buy, trade and store XRP coins.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Must read: SEC Lawsuit

On 12/22/2020, the US Securities and Exchanges Commission (SEC) filed a lawsuit against Ripple and two of its executives.

According to the SEC press release “The complaint alleges that Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide.”

Ripple filed a 93-page response to the lawsuit on 01/29/2021, stating that “XRP performs a number of functions that are distinct from the functions of “securities” as the law has understood that term for decades. For example, XRP functions as a medium of exchange — a virtual currency used today in international and domestic transactions — moving value between jurisdictions and facilitating transactions.”

What are Ripple and XRP?

Launched in 2012, XRP is now one of the world’s largest cryptocurrencies. It aims to offer fast, affordable and reliable cross-border payments. Both XRP and the XRP Ledger are used by US technology company Ripple, which develops a range of solutions designed to transform the global payment industry.

“The revolution of blockchain is not going to happen from outside the system; it’s going to happen from within the system.”
– Brad Garlinghouse, Ripple CEO

Ripple is a San Francisco-based technology company with more than 300 employees, focused on providing cross-border payment solutions.

Ripple’s main aim is to create a global settlement network that ensures more efficient transactions between the world’s financial institutions.

The platform is designed to allow users – primarily financial institutions – to transfer money from any currency to any other currency in a matter of seconds, anywhere in the world. This is an ambitious goal meant to eliminate the need for older systems like SWIFT.

Before going any further, we should point out that the term “Ripple” is often used interchangeably, and often incorrectly, to refer to a few different things.

XRP

XRP is the name of the digital currency that facilitates transactions on the Ripple network. It effectively acts as a bridge between the two currencies being transferred, and also serves as a source of liquidity when necessary. XRP is the native asset of the XRP Ledger, an open-source blockchain that runs on a network of peer-to-peer servers.

Ripple

This is the American technology company that develops the Ripple payment protocol and network. Originally known as OpenCoin, it later traded as Ripple Labs before rebranding to Ripple in 2015.

RippleNet

This is Ripple’s network of payment providers around the world. It connects the different payment networks of banks, payment providers, digital asset exchanges and corporate entities, and can accept both fiat and cryptocurrencies.

XRP vs Ripple: What’s the difference?

The term “Ripple” is often used to describe the XRP cryptocurrency, but this is in fact incorrect.

Ripple is a California-based tech company that aims to make it faster, easier and more affordable to send cross-border payments.

XRP (XRP) is the independent digital asset that facilitates transactions on the Ripple network, acting as a bridge between different fiat currencies and as a source of liquidity.

[INFOGRAPHIC] An in-depth comparison of XRP and Ripple.

Where to buy XRP

You might consider the following XRP brokers and XRP exchanges. All of the following let you buy, sell or trade XRP, although their value for money and convenience might vary.

Name	Deposit methods	Fiat Currencies	Cryptocurrencies
Binance Cryptocurrency Exchange	Bank transfer (ACH)	USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more	315 cryptocurrencies	Promo: New users earn up to USD 100 in bonus rewards on qualified deposits and trades. Valid till 31 December 2021. T&Cs apply. Finder Exclusive: Get 10% discount on your fees when signing up through Finder. Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support. US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US. UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.	Go to site View details	Compare	loading Fetching your data...
Crypto.com App	Credit card, Cryptocurrency, PayPal, TransferWise, SEPA	USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY, ZAR & 9+ more	153 cryptocurrencies	Buy 100+ cryptocurrencies, earn up to 14.5% p.a. on holdings, pay with your crypto for cashback at stores, get loans and more with this complete crypto-finance platform.	Go to site View details	Compare	loading Fetching your data...
KuCoin Cryptocurrency Exchange	Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA	USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more	434 cryptocurrencies	Finder exclusive: Sign up and use code 1xf56 for one month of VIP 1 benefits. Deposit/transfer more than 0.1 BTC to KuCoin within 7 days of registration for 1 month of VIP 2 benefits. T&Cs apply. Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.	Go to site View details	Compare	loading Fetching your data...
FTX Cryptocurrency Exchange	Credit card, Wire transfer, Silvergate Exchange Network (SEN), Signature SIGNET	USD,EUR,GBP,AUD,HKD,SGD,TRY,ZAR,CAD,CHF,BRL	69 cryptocurrencies	FTX is an exchange built by traders for traders, with a range of derivatives markets such as options and futures with deep leverage, in addition to standard spot markets. Note: Not available for US customers.	Go to site View details	Compare	loading Fetching your data...
eToro Cryptocurrency Trading	Bank transfer, Credit card, Debit card, Neteller, PayPal, Online banking, Skrill	EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK & 5+ more	27 cryptocurrencies	Disclaimer: Volatile investment product. You should consider whether you can afford to take the high risk of losing your money. Copy the trades of leading cryptocurrency investors on this unique social investment platform. $200 minimum deposit.	Go to site View details	Compare	loading Fetching your data...
Coinmama Cryptocurrency Marketplace	Bank transfer, Credit card, Cryptocurrency, Debit card	USD, EUR, AUD, CAD, GBP, JPY	10 cryptocurrencies	Founded in 2013, CoinMama lets you buy and sell popular cryptos with a range of payment options and quick delivery.	Go to site View details	Compare	loading Fetching your data...
Bittrex Global	Bank transfer, Credit card, Cryptocurrency, Debit card	USD	281 cryptocurrencies	Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.	Go to site View details	Compare	loading Fetching your data...
Gate.io Cryptocurrency Exchange	Cryptocurrency	USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN	820 cryptocurrencies	Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in GateTokens if trade volume exceeds $100 in their first week. T&Cs apply. A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.	Go to site View details	Compare	loading Fetching your data...
Paybis Cryptocurrency Exchange	Bank transfer, Credit card, Cryptocurrency, Neteller, Skrill, Apple Pay	EUR, GBP, USD, AUD, CAD, PHP, SGD, CHF, HKD, JPY & 30+ more	32 cryptocurrencies	Buy Bitcoin and other popular cryptocurrencies with credit card or debit card on this digital cryptocurrency exchange. US residents: Restricted in the following states - NY, CT, NM, WA, HI, AL, VT, FL, AK, NV.	Go to site View details	Compare	loading Fetching your data...
Bitfinex Professional Trading Exchange	Credit card, Cryptocurrency, Bank Wire	USD, EUR, GBP, JPY	168 cryptocurrencies	Cryptocurrencies are a highly volatile investment product. Your capital is at risk. Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.	Go to site View details	Compare	loading Fetching your data...
AAX Cryptocurrency Exchange	Alipay, Bank transfer, Cash, Neteller, PayPal, Qiwi, SWIFT, WeChat, Western Union, UPI, IMPS, Paytm, Faster Payments (FPS), PayNow, Swish, Payme	AUD, CAD, CNH, CHF, EUR, GBP, HKD, NZD, SGD, USD	110 cryptocurrencies	Make fast transactions including spot, futures and P2P trading with this cryptocurrency exchange.	Go to site View details	Compare	loading Fetching your data...
OKEx Cryptocurrency Exchange	Bank transfer, Cryptocurrency, iDEAL, PayPal, POLi, SEPA, Faster Payments (FPS)	USD, CNY, EUR, ARS, AUD, BGN, BRL, CAD, CHF, COP & 20+ more	270 cryptocurrencies	Promo: Earn US$10 in BTC when you refer a friend and they purchase $100 of cryptocurrency. T&Cs apply. Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.	Go to site View details	Compare	loading Fetching your data...
Coinbase Digital Currency Exchange	Bank transfer (ACH), Credit card, Debit card, PayPal, Bank transfer (SEPA)	USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 10+ more	73 cryptocurrencies	Buy and sell major cryptocurrencies on one of the world's most renowned cryptocurrency exchanges.	Go to site View details	Compare	loading Fetching your data...
CEX.IO Cryptocurrency Exchange	Bank transfer, Credit card, Cryptocurrency, SWIFT, SEPA, Faster Payments (FPS)	USD, EUR, GBP, RUB	22 cryptocurrencies	Disclaimer: Highly volatile investment product. Your capital is at risk. Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.	Go to site View details	Compare	loading Fetching your data...
StormGain Cryptocurrency Exchange	Cryptocurrency	USD, EUR, AUD, CHF, CZK, DKK, GBP, HUF & 5+ more	23 cryptocurrencies	Stormgain aims to make cryptocurrency trading easy, and also lets you buy crypto with fiat via Simplex. UK residents: In addition to normal crypto trading, Stormgain offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service.	Go to site View details	Compare	loading Fetching your data...
Liquid Cryptocurrency Exchange & Margin Trading	Bank transfer, SEPA	USD, JPY, EUR, SGD, AUD, HKD	127 cryptocurrencies	Promo: Get 10% off your trading fees. T&Cs apply. Disclaimer: Highly volatile investment product. Your capital is at risk. Liquid is a unified, globally-sourced trading platform that bridges the worlds of fiat and crypto.	Go to site View details	Compare	loading Fetching your data...
Huobi Cryptocurrency Exchange	AdvCash, Cryptocurrency, SWIFT, Wire transfer	GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more	228 cryptocurrencies	Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.	View details	Compare	loading Fetching your data...
Bithumb Cryptocurrency Exchange	Cryptocurrency	KRW	192 cryptocurrencies	A global platform where users can make KRW and cryptocurrency deposits to purchase up to 15 popular cryptocurrencies.	View details	Compare	loading Fetching your data...
Bitstamp Cryptocurrency Exchange	Bank transfer, Cryptocurrency, Credit or Debit Card, SEPA, Faster Payments (FPS)	USD, EUR, GBP	35 cryptocurrencies	A global cryptocurrency exchange that facilitates crypto to fiat transactions, where you can use EUR or USD to buy bitcoin and popular altcoins.	View details	Compare	loading Fetching your data...
ShapeShift Cryptocurrency Exchange	Credit card, Cryptocurrency, Debit card, Banxa		50 cryptocurrencies	Quickly swap between more than 40 cryptocurrency assets or use your credit card to instantly buy bitcoin.	View details	Compare	loading Fetching your data...

Compare up to 4 providers

How XRP works: The technology behind Ripple

Current methods of sending money internationally are outdated and slow. This is best summed up in this excerpt from Ripple’s cost model paper:

“Today’s global payments infrastructure moves money from one payment system to another through a series of internal book transfers across financial institutions. Because these book transfers occur across different systems with a low level of coordination, funds settlement is slow (often 3-5 days, trapping liquidity), error-prone (error rates run upwards of 12.7%), and costly (US$1.6 trillion in system-wide costs for global cross-border transactions).”

Despite the fact that the global remittances industry is huge, there’s currently no streamlined and well-organized international network to handle cross-border payments. This is the problem Ripple aims to solve. However, rather than going toe-to-toe in competition with the banking Goliaths that currently control this sector, Ripple’s plan is to partner with major financials around the world to offer a blockchain-based solution.

By joining Ripple’s global network, Ripple says that financial institutions can process their customers’ payments anywhere in the world instantly, reliably and cost-effectively.

How long do XRP payments take to settle?

Let’s say Bank A in Australia wants to send AU$5 million to Bank B in Bangladesh. Rather than converting Australian dollars to Bangladeshi taka, battling exchange rate margins, paying processing fees and facing slow transaction times along the way, Bank A can transfer AU$5 million worth of XRP to Bank B’s Ripple wallet, which can then be converted to the local currency.

Payments using XRP settle in four seconds, and the current minimum transaction cost required by the network for a standard transaction is 0.00001 XRP. The network is also currently capable of consistently handling 1,500 transactions per second.

XRP settlement Image: Finder

Payment settlement times of XRP vs other platforms Source: Ripple

xCurrent vs xRapid vs xVia: What’s the difference?

Ripple offers three products to banks and payment providers around the world:

- This Ripple software is designed to allow banks to instantly settle cross-border payments with end-to-end tracking. It enables real-time messaging between banks so that payment details can be confirmed before a transaction is initiated, and to verify delivery once the transaction has been settled.
- xCurrent is built around the Interledger Protocol (ILP), which enables interoperation between different ledgers and networks and is designed to satisfy all the risk, privacy and compliance requirements of each bank. It’s currently in use by several financial institutions, most notably as part of a much-publicized partnership with American Express and Santander.
- However, it’s worth pointing out that xCurrent doesn’t actually involve the use of XRP at all. An important detail for those who wish to speculate on the value of the cryptocurrency.
How xCurrent works Source: Ripple
- xRapid is designed to provide banks and payment providers with access to on-demand liquidity. It uses XRP to reduce costs and enable real-time payments for financial institutions targeting emerging markets.
- xRapid has been tested by a number of payment providers including Western Union, MoneyGram and Cuallix.
How xRapid works Source: Ripple
- Designed for corporates, payment providers and banks, xVia is a payment interface designed to make it easier to use xCurrent and xRapid. It allows users to track payments and generate invoices for their transactions.
How xVia works Source: Ripple

XRP supply and tokenomics

The maximum supply of 100 billion XRP has already been created. However, as of December 2018, the circulating supply sits at about 41 billion.

Escrow release

This is because Ripple, the company behind the cryptocurrency, owns some 60% of the total supply of XRP. As of May 2018, most of Ripple’s holdings (around 55 billion XRP) were locked in an escrow account, with up to 1 billion XRP to be released every month for a period of 55 months.

Of the 1 billion XRP released each month, any unused amounts are put back into escrow and will be re-released in the first month that there are no other XRP releases. Essentially, the unused amounts are sent to the back of the queue.

Deflation

XRP is also deflationary. While the total XRP supply started off at 100 billion (100,000,000,000), by the end of 2018 it was down to only 99.99 billion (99,991,757,426 according to CoinMarketCap).

That’s because XRP is a deflationary currency, with every transaction incurring a small fee (to prevent spam attacks) which is destroyed during the transaction.

The minimum fee for each XRP transaction is 0.00001 XRP (also known as 10 drops, or a fraction of a cent), although certain movements such as multi-signature transactions, or escrow transactions, will incur higher fees.

So, in about 6 years of its life, around 8 million XRP has been destroyed by deflation. Even with generous predictions of XRP uptake it’s estimated that it would take thousands of years for circulating numbers to get low enough to start being a concern. Plus, XRP can be divided into individual drops (0.000001 XRP) if needed.

The fees and therefore the burn rate can also be modified by consensus at a later date.

In the immediate future, the real circulating supply of XRP will actually be increasing much more quickly than it’s decreasing as Ripple releases XRP from its escrow account.

Is XRP centralized or decentralized?

Picture not describedQuestions you might have
The XRP blockchain works differently to Bitcoin, Ethereum and most others, and has often been criticized as being not truly decentralized.

The point of decentralization in this context is primarily to ensure that it’s impossible to interfere with the network by blocking or reversing transactions, sending money you don’t have and similar.

If one entity manages to take control of a large enough part of the network, or if a sufficient number of participants collude to attack the network, they might be able to interfere with the network in these kinds of ways.

Public ledgers like Bitcoin: Theoretically anyone can participate in the mining process, and be rewarded with cryptocurrency for processing transactions and maintaining the ledger. Network security depends on having a diverse range of independent miners, it assumes that miners are motivated by profits and it aims to ensure that attacking the network is less profitable than doing the right thing.
XRP Ledger: There are no direct rewards for node operators. Rather, running a node is its own reward because it helps maintain the XRP Ledger which should be providing a valuable service. There are two kinds of nodes, but only the “trusted” ones will actually have a say in whether transactions are processed. The untrusted ones are mostly just along for the ride.

One of the reasons XRP Ledger is so fast compared to Bitcoin and other public blockchains is essentially because it depends on that tighter and faster set of “trusted nodes” to do the heavy lifting. These nodes can be found on Ripple’s Unique Node List. Getting a spot on that list means publicly identifying and verifying oneself to the world.

It’s mostly businesses and other well-known entities that operate validating nodes. At various points, Microsoft, MIT and other institutions have operated trusted nodes. Currently (December 2018) there are 115 total nodes. Of these, 26 are trusted nodes.

The reason this system has drawn so much criticism is because one of the big points of a blockchain is that you don’t have to trust anyone, and can instead just trust the system.

So, the main question to ask if you’re wondering whether XRP Ledger is sufficiently decentralized to be safe, might be:

Can trusted nodes be trusted?

Yes and no. You naturally can’t trust any individual node, but you don’t have to.

In this case, “trusted” doesn’t mean that every single node needs to be honest. Rather, it just means that they can be trusted not to collude with each other for the purpose of interfering with the XRP Ledger.

The collusion threshold needed to attack the ledger depends on what they want to accomplish. This is because a supermajority of nodes (80%) need to approve a transaction before it can go through.

What this means is:

If over 20% of nodes collude, they can start blocking transactions by refusing to validate them.
If over 80% of nodes collude, they can start faking their own transactions by validating whatever they want.

At the same time, any trusted nodes which want to abuse that trust will likely have to do so publicly and under their own name.

As recently as May 2018, Ripple controlled 100% of all trusted nodes making it an almost entirely centralized system. But even more recently, as of November and December 2018, Ripple controlled only 27% of the network’s trusted nodes.

Ripple vs Non Ripple Image: Supplied

Firstly, this might indicate that Ripple is serious about not wanting to give anyone – even itself – too much power over the XRP Ledger, and that it’s been taking consistent steps to that end.

And secondly, that particular balance means that even if literally every other trusted validator tried to attack the network, they wouldn’t be able to get the supermajority needed to falsify transactions. The only thing they’d be able to do is block the network temporarily, ruining their own reputations for no clear gain.

Conversely, Ripple doesn’t have enough node control to unilaterally do anything either, except refuse transactions.

Plus, the Unique Node List is just a set of recommendations put forward by Ripple to keep everyone on the same page and make things easier. Even if Ripple itself were to go rogue and block the XRP Ledger, the other node operators could theoretically keep things flowing by each cutting those misbehaving nodes out of their own personal trusted node lists.

“If Ripple as a company went away, XRP would continue to trade. To me, that’s the definition of decentralisation.” – Ripple CEO Brad Garlinghouse

So, although it may not be decentralized in the same way Bitcoin or other cryptocurrencies are, XRP Ledger might be sufficiently decentralized for its intended applications.

It’s worth noting that Ripple’s 27% majority node control, with an 80% supermajority required for takeover, and failsafes in the event of a takeover attempt, means that XRP is functionally much more decentralized than Bitcoin. Bitcoin only has a 51% threshold for takeover, already has individual mining firms controlling way more than 27% of the network, and has no failsafes in the event of a takeover attempt.

Storing your XRP safely

Vector of cryptocurrency wallet

While you can store your XRP on an exchange if you wish, for security reasons it’s recommended that you store them in a private wallet.

There are many popular wallets that support XRP, including the Ledger Nano S hardware wallet and Toast Wallet for desktop.

Learn about cryptocurrency wallets

Best ways to store XRP

Best XRP wallets Best hardware wallets

Ripple team

Ripple, the San Francisco-based fintech company behind XRP, was founded in 2012. Though the project has roots dating back to 2004, it wasn’t until Jed McCaleb and Chris Larsen joined forces in August 2012 that the Ripple we know today truly began to take shape.

Today, Ripple is led by CEO Brad Garlinghouse and notable team members like chief cryptographer David Schwartz and CTO Stefan Thomas.

Notable partnerships

The list of financial institutions and organizations that have partnered with Ripple is an impressive one and stretches to more than 100 customers. Some of the highlights of 2018 include:

December 2018: Coinone Transfer launches Cross, South Korea’s first blockchain remittance service, powered by Ripple.
November 2018: CIMB Group, ASEAN’s fifth largest bank, entered into a strategic collaboration with Ripple to enable instant cross-border payments across its markets.
October 2018: Ripple announced that xRapid (which uses the XRP token) was commercially available, and was already moving into production with customers including MercuryFX and Cuallix.
September 2018: PNC Financial Services, a top ten bank in the United States, joined RippleNet as a user to offer customers real-time cross-border payments.
August 2018: Ripple brings on Bittrex, Bitso and Coins.ph as its preferred digital asset exchange partners.
May 2018: Ripple announced that RationalFX (UK), FairFX (UK), Exchange4Free (UK), MoneyMatch (Malaysia) and UniPAY (Georgia) were joining xVia.
April 2018: Santander launched a blockchain-based foreign exchange service, called Santander One Pay FX, using Ripple’s technology.
February 2018: Two banks, Itaú Unibanco (Brazil) and IndusInd (India), and three remittance providers – InstaReM (Singapore), Beetech (Brazil) and Zip Remit (Canada) – announced that they were joining RippleNet.
February 2018: It was announced that Western Union was trialing transactions using Ripple technology.
January 2018: MoneyGram announced that it would pilot the use of XRP in its payment flows through xRapid.
June 2019: Ripple announced the purchase of MoneyGram stock, agreeing to purchase a ~10% stake in the company for US$50 million. MoneyGram agreed to use Ripple products for cross-border settlements.
March 2020: The National Bank of Fujairah PJSC (NBF), a partially state-owned bank in the UAE partners with Ripple and announces it will use RippleNet for remittances to India.
September 2020: Ripple acquired Logos and it’s team of Engineers who will work on Ripple’s Xpring product as well as create a DeFi ecosystem that operates on the XRP blockchain. A week later Ripple purchases Icelandic crypto trading firm Algrim in order to strengthen its European footprint, in particular, it’s On-Demand Liquidity service.

What to watch out for

The biggest obstacle to Ripple’s quest for global domination is the adoption (or lack thereof) of XRP by banks and financial institutions around the world, and that’s where the focus of the people behind Ripple might be.

If more banks join the network, this could encourage demand for XRP and entice other banks to join the platform, but Ripple may also face stiff competition from Stellar.

And that’s before we even get to the established players in this space. Ripple needs to not only outperform other blockchain payment solutions, but also needs to be an improvement on the in-house blockchain creations being trialed by financial institutions around the world.

SWIFT currently connects more than 11,000 of the world’s financial institutions through its own network, and has been working on its own trials of blockchain technology. Credit card giant Visa is exploring its own blockchain-based cross-border payment options, so Ripple won’t be able to just waltz in and take a big chunk of market share without a fight.

Another key challenge that could hamper the price growth of XRP is its inability to gain listings on popular US exchanges like Coinbase and Gemini. The Coinbase listing was heavily rumored in early 2018 but never eventuated, and reports from April 2018 suggest that XRP is unlikely to feature on either of these platforms any time soon.

There are also ongoing questions about the role of XRP within the Ripple ecosystem. Usage and network effects might drive price actions to a large extent, but this may not translate into higher prices as directly as one might expect. Trillions of dollars are crossing borders each year, but it’s still not clear how much market cap XRP needs to adequately service the industry.

The XRP Ledger’s construction and design choices have also attracted some criticism.

Bottom line

With partnerships galore and strong financial backing, Ripple is a major player in the crypto world. It’s designed with a focus on bridging the gap between the traditional banking industry and the new age of digital currencies, and as anyone who’s ever been gouged while sending an international money transfer will agree, it’s targeting a market sector that’s crying out for disruption.

But whether or not Ripple has the product to challenge the old guard of the world’s financial industry remains to be seen, so research the project thoroughly before deciding whether or not you should buy any XRP.

Frequently asked questions about Ripple

Ripple’s key competitor, at least in the crypto sphere, is widely considered to be Stellar. Stellar offers a distributed payments network to provide fast and affordable cross-border transactions, and also relies on its own native currency, Lumens (XLM).
There are plenty of similarities between the projects – Stellar was actually created by Ripple co-founder Jed McCaleb – but some key differences as well. Perhaps the biggest difference is a philosophical one, as while Ripple is focusing on banks and the corporate end of town, Stellar’s goal is to provide low-cost financial services to people in the world’s developing countries, and to facilitate direct peer-to-peer transfers rather than to facilitate the transferring of people’s money by remittance companies and banks.
Compare XRP and Stellar side by side in our comprehensive guide.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Thank you for your feedback!

Andrew Munro

Andrew Munro was the global cryptocurrency editor at Finder, covering all aspects of cryptocurrency and the blockchain. Andrew has a Bachelor of Arts from the University of New South Wales.

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What is XRP? The ultimate guide to XRP

See how the Ripple blockchain platform aims to transform the global payments industry.

In this guide

Cryptocurrency

How To Buy

Buy, Sell & Exchange

Coins

Wallets

Must read: SEC Lawsuit

What are Ripple and XRP?

XRP

Ripple

RippleNet

XRP vs Ripple: What’s the difference?

Where to buy XRP

Compare up to 4 providers

How XRP works: The technology behind Ripple

How long do XRP payments take to settle?

xCurrent vs xRapid vs xVia: What’s the difference?

xCurrent

xRapid

xVia

XRP supply and tokenomics

Escrow release

Deflation

Is XRP centralized or decentralized?

Storing your XRP safely

Best ways to store XRP

Ripple team

Notable partnerships

What to watch out for

Bottom line

Frequently asked questions about Ripple

Can I mine XRP?

Is there an official XRP wallet?

Ripple vs Stellar: What's the difference and how do they compare?

Andrew Munro

More guides on Finder

Ask an Expert

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