Ripple and XRP are separate; XRP runs on a decentralized ledger not owned by Ripple.
XRP Ledger processes 1,500+ TPS with $0.0002 fees and 3–5 second settlement times.
Wrapped XRP launched on Coinbase’s Base Network, expanding XRP’s blockchain presence.
A recent post by Reece Merrick on X has sparked interest in the crypto world. Merrick, a senior executive at Ripple, addressed this common misunderstanding about Ripple and XRP. According to the Ripple Executive, many think Ripple and XRP are the same thing. That’s not true, and Merrick explained the difference in simple terms.
XRP and Ripple Are Not the Same
Merrick highlighted how Ripple and XRP serve separate functions within the blockchain ecosystem. Ripple operates as a private company which creates blockchain applications for institutional use emphasizing payment systems and custody solutions. The company makes use of XRP and XRPL for stopping wire transfers, but it does not have direct authority over their ownership.
The XRP Ledger operates as a decentralized, open-source blockchain network. No single entity owns or manages it. This separation is significant, as it ensures that anyone can utilize or develop the ledger. XRP itself is a digital currency that runs natively on this network.
Though Ripple incorporates XRP into some tools, the token remains independent from the company. This clear distinction helps investors and users better understand the ecosystem.
XRP Ledger Offers Fast and Affordable Transactions
XRP Ledger continues to gain recognition for its performance. It can settle transactions in three to five seconds. Transaction costs remain minimal, averaging about $0.0002 per transaction. The network can also process more than 1,500 transactions per second. This level of efficiency positions it as a competitive choice for global payment systems.
The fact that Ripple’s services work on the XRPL makes many people mix what the technology does with the company it was developed. According to Merrick, Ripple develops applications, while XRP and the ledger work on a separate basis. With this information, people in the digital asset market have greater clarity.
Clear Definitions Help Investors and Newcomers
Merrick noted that many new entrants into crypto believe Ripple and XRP are interchangeable. This misunderstanding could affect investment decisions. Clarifying these definitions allows for informed participation in the space. When you buy XRP, you only own the digital token and not any part of the Ripple company.
Because bigger financial players are now tapping into crypto, such as JPMorgan offering Bitcoin ETF loans, learning about the roles of every part of the crypto industry matters more than before. Merrick’s post encourages deeper research into the technical strengths of the XRP Ledger and the practical business role Ripple plays.
More and more people are showing an interest in XRP. Wrapped XRP just launched on Coinbase’s Base Network, showing how the token is becoming present on blockchain networks. As more people use cryptocurrency, it will still be necessary to distinguish between the coin, the ledger, and the company.
