XRP is a cryptocurrency created by Ripple to enable fast, low-cost international money transfers between financial institutions. Here's a comprehensive overview:
What is XRP?
XRP is the native token of the XRP Ledger, a blockchain developed by Ripple. The token and chain were launched in 2012, with XRP being fully pre-mined. XRP's primary purpose is to facilitate cross-border payments, acting as a bridge between different currencies.
Key Features
- Fast Transactions: XRP Ledger's consensus mechanism allows for fast transaction times, averaging 3-5 seconds.
- Low Fees: Transaction fees on the XRP Ledger are minimal, with a minimum standard fee of 0.00001 XRP.
- Decentralized Exchange: XRP Ledger has a decentralized exchange (DEX) where users can trade various assets, with XRP serving as the auto-bridging asset.
How Does XRP Work?
- Total Supply: The total supply of XRP is capped at 100 billion, with approximately 58.4 billion tokens in circulation.
- Escrow: A significant portion of XRP is held in escrow by Ripple, with a portion released each month.
- Consensus Mechanism: XRP Ledger uses a unique consensus algorithm, relying on a network of trusted validators to agree on transactions.
Use Cases
- Cross-Border Payments: XRP facilitates fast and low-cost international money transfers, making it an attractive solution for financial institutions.
- Decentralized Finance (DeFi): XRP Ledger's capabilities extend beyond payments, with potential use cases in DeFi, real-world asset tokenization, gaming, and NFTs.
- Stablecoin: Ripple has issued its own USD stablecoin, RLUSD, on the XRP Ledger.
SEC Lawsuit
- Settlement: Ripple settled its lawsuit with the SEC in March 2025, with the SEC dropping its appeal and Ripple agreeing to pay a $125 million fine.
- Impact: The settlement has brought more clarity to XRP's regulatory status, paving the way for potential integration into traditional financial products.
Where to Buy and Store XRP
- Exchanges: XRP is listed on major exchanges like Binance, Coinbase, OKX, and Bybit.
- Wallets: XRP can be stored in hot wallets like Trust Wallet, Exodus, and GateHub, or cold wallets like Ledger, Trezor, and Tangem.
Risks and Considerations
- Price Volatility: XRP's price can fluctuate rapidly, and market volatility should be expected.
- Supply Concentration: Ripple's significant XRP holdings could impact the market if sold in large quantities Ā¹.