$XRP is the native cryptocurrency of Ripple, a cryptocurrency payments system created by Ripple Labs Inc. XRP is a “digital asset built for global payments,” implying that Ripple plans to rival traditional bank transfers. XRP will allow users to send money at very low fees, potentially appealing to retail customers and banks. Ripple’s main value proposition is its very small transaction fees while offering transaction finality of under five seconds.

The company was founded in 2012 by Chris Larsen and Jed McCaleb and is based on the work of Ryan Fugger, who created the XRP Ledger in 2012. The XRP Ledger is an open-source cryptographic ledger powered by a peer-to-peer network of nodes. McCaleb eventually left Ripple and founded Stellar, another payments-oriented cryptocurrency.

After the company rebranded from its original name OpenCoin to Ripple, it pursued high-profile partnerships with Bank of America, Santander, and Standard Chartered. However, Ripple soon ran into legal trouble with US regulators for failing to comply with the Bank Secrecy Act, and was subsequently labeled an unregistered security. The lawsuit remains unresolved as of early 2022. Furthermore, the company has been accused of misleading advertising in its early stages.