Ripple (XRP) is both a digital payment network and a cryptocurrency. XRP is the native token of the XRP Ledger (XRPL), a decentralized, open-source blockchain designed for fast, low-cost value transfers. Its primary use case is facilitating cross-border payments for financial institutions, making it a cryptocurrency focused on real-world utility rather than speculation alone.
History of Ripple: The Ripple concept originated in 2004 when Ryan Fugger developed the first version called RipplePay. In 2012, David Schwartz, Jed McCaleb, and Arthur Britto launched the XRP Ledger with XRP as a faster, more energy-efficient alternative to Bitcoin. That same year, along with Chris Larsen, they founded the company now known as Ripple Labs. In 2013, the company rebranded from OpenCoin to Ripple Labs, and again to simply Ripple in 2016.
XRP-enabled cross-border payments were up to 60% cheaper than SWIFT-based transfers, with settlement times falling to under four seconds.
XRP Tokyo 2026 Pilot – Japanese Bank Data
How XRP Works: Unlike Bitcoin's Proof-of-Work or Ethereum's Proof-of-Stake, the XRP Ledger uses a unique Federated Consensus mechanism. Designated validators agree on transaction order and outcome, allowing settlements to complete in 3–5 seconds. Each transaction burns a tiny amount of XRP (the base fee) to prevent spam attacks. The XRP Ledger also features a built-in decentralized exchange (DEX) for trading tokenized assets.
XRP Supply: Unlike most cryptocurrencies, XRP is pre-mined. The ledger created 100 billion XRP at launch and releases them periodically. The current circulating supply is approximately 61.4 billion XRP — 61% of the maximum supply of 100 billion. Ripple holds a large reserve in escrow, releasing up to 1 billion XRP per month under a structured schedule.
Ripple vs. XRP: It's important to distinguish between Ripple the company and XRP the token. Ripple uses XRP in its products, particularly RippleNet and On-Demand Liquidity (ODL), but XRP itself operates independently on the permissionless XRP Ledger. Over 300 financial institutions worldwide, including BBVA, BNP Paribas, and Citigroup, use Ripple's infrastructure for international payments.
