What is XRP?

XRP is the native cryptocurrency of the XRP Ledger (XRPL), an open-source blockchain developed by Ripple Labs. Launched in 2012, XRP was designed to facilitate fast, low-cost international money transfers. Unlike Bitcoin, which relies on proof-of-work, XRP uses a unique consensus protocol where independent validators confirm transactions, making it faster and more energy-efficient.

XRP's primary use case is to act as a bridge currency in cross-border payments, enabling financial institutions to transfer funds quickly and cheaply without relying on traditional banking systems. Transactions on the XRP Ledger settle in 3–5 seconds, with fees as low as a fraction of a cent.

Ripple has partnered with several banks and payment providers worldwide, promoting XRP as a solution to improve liquidity and streamline global money transfers. Despite facing legal challenges from the U.S. Securities and Exchange Commission (SEC) over its $XRP

classification as a security, XRP remains a top cryptocurrency by market capitalization.

Investors view XRP as a promising asset for the future of digital finance, especially as Ripple continues to push for innovation in cross-border payments and decentralized finance (DeFi). However, like all cryptocurrencies, XRP’s price remains volatile, so thorough research is essential before investing.