Ripple (XRP) is both a digital payment protocol and a cryptocurrency designed to enable fast, low-cost international money transfers for banks and financial institutions. Created by Ripple Labs in 2012, XRP operates on the XRP Ledger — a decentralised blockchain with consensus achieved through a network of trusted validators rather than mining or traditional Proof-of-Stake.
XRP transactions settle in 3–5 seconds with fees of fractions of a cent, making it one of the fastest and cheapest settlement networks available. Ripple’s core product, RippleNet, is used by banks and payment providers across 40+ countries to facilitate cross-border payments, replacing the slow and expensive SWIFT banking system. Major partners have included Santander, American Express, and MoneyGram.
XRP’s total supply is 100 billion tokens, pre-mined at launch — a significant difference from Bitcoin’s mined supply model. This centralised element has made XRP controversial. Ripple Labs controls a significant portion of the supply in escrow, releasing tokens monthly, which critics argue creates constant selling pressure.
XRP was also subject to a major SEC lawsuit (2020–2023) alleging it was an unregistered security — a case that significantly impacted its price but ultimately resulted in a partial victory for Ripple.
Example: A bank in Japan needs to send $1 million to a bank in Mexico. Using XRP as a bridge currency, the transaction settles in 4 seconds with $0.01 in fees — versus 2–5 business days and $50+ fees via SWIFT.
Learn more: Ripple.com — XRP Overview
