Key takeaways
- XRP is the currency of the XRP Ledger, an open blockchain that has run since 2012 and is designed for fast, cheap payments.
- All 100 billion XRP were created at the start. The company Ripple received 80 billion and has locked a large share of them in escrow.
- Transactions are confirmed in 3-5 seconds. The fee is a tiny fraction of one XRP, and it is destroyed.
- The US Securities and Exchange Commission's case against Ripple ended in August 2025, and a judgment for a USD 125 million penalty stands.
Contents
XRP is the currency of the XRP Ledger, an open BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. designed to move value quickly and cheaply, including across borders. A transaction is confirmed in 3-5 seconds and costs a tiny fraction of one XRP.
XRP is closely linked to the US company Ripple, which owns a lot of XRP and uses it in its payment services. But XRP and Ripple are not the same thing, as explained below.
Who created XRP?
The developers David Schwartz, Jed McCaleb and Arthur Britto built the XRP Ledger in 2011 and 2012. The network went live in June 2012, and 100 billion XRP were created at that point. No more will ever be created.
In September 2012, McCaleb and Britto founded a company with Chris Larsen, which is now called Ripple. The ledger's creators gave the company 80 billion XRP in exchange for it developing the XRP Ledger. The other 20 billion stayed with the creators.
The XRP Ledger is open-source softwareOpen sourceSoftware whose source code is open to everyone, so anyone may read it, use it, change it and share it., and the network has no central administrator. Ripple contributes a lot to its development, but anyone can run a NodeNodeA computer that runs a crypto network's software, keeps a copy of the blockchain and checks that new transactions and blocks follow the rules. and use the network.
What is XRP used for?
- Cross-border payments. Ripple sells businesses a payment service called Ripple Payments. The sender's currency is converted into a digital asset such as XRP, which crosses the XRP Ledger in seconds. At the other end, it is converted into the recipient's currency. According to Ripple, the service reaches more than 60 markets.
- The RLUSD stablecoin. In December 2024, Ripple began issuing RLUSD, a StablecoinStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency. that tracks the US dollar. It is issued by a trust company chartered by the New York State Department of Financial Services and runs on the XRP Ledger, Ethereum and other networks.
- Tokens and trading. Anyone can issue tokensTokenA digital asset created with a smart contract on another cryptocurrency's blockchain, rather than on a blockchain of its own. on the XRP Ledger. The ledger also has a built-in decentralised exchangeDecentralised exchange (DEX)An exchange run by smart contracts, where people swap crypto straight from their own wallets with no company in the middle. that uses both an order bookOrder bookA list of all open buy and sell orders for an asset, sorted by price. A trade happens when a buy order and a sell order meet. and an automated market makerAutomated market maker (AMM)A smart contract that prices tokens on a decentralised exchange with a fixed formula, based on how much of each token sits in the pool..
Every transaction on the XRP Ledger costs a fee in XRP, even when sending a token such as RLUSD. That makes XRP a kind of fuel for the network.
How does the XRP Ledger work?
Consensus without mining
The XRP Ledger uses neither proof of workProof of workA consensus method where the right to add the next block to a blockchain goes to whoever first solves a hard computing puzzle. nor proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake.. It has its own consensus mechanismConsensus mechanismThe rules that let thousands of computers agree on a single version of a blockchain without trusting any one party.: every few seconds, validatorsValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards. compare transactions and agree on the next version of the ledger. Nobody races to solve puzzles, and nobody puts up money as a deposit.
Each node chooses which validators it trusts. That list is called a UNL (Unique Node List). The network runs normally as long as fewer than 20% of trusted validators fail, and getting an invalid transaction approved would take more than 80% of them working together.
Speed and fees
The minimum fee for a standard transaction is 10 drops, or 0.00001 XRP, since one XRP divides into a million drops. The fee isn't paid to anyone; it is destroyed. It rises when the network is busy, which makes flooding the network with spam expensive.
A new XRP Ledger address must receive at least 1 XRP to be activated. That amount stays on the address as a reserve and can't be sent.
Supply
The network's rules don't allow new XRP to be created. Because fees are destroyed, the total supplyTotal supplyHow many units of a cryptocurrency already exist, whether in circulation or still locked, minus any that have been destroyed. shrinks slightly with every transaction.
In December 2017, Ripple placed 55 billion XRP in escrow on the XRP Ledger. One billion is released at the start of each month, and whatever Ripple doesn't use goes back into a new escrow. The aim was to make it predictable how much XRP enters circulation.
What are the risks?
In December 2020, the US Securities and Exchange Commission (SEC) sued Ripple and two of its executives. The SEC argued that Ripple's sales of XRP had been an unregistered securities offering.
In July 2023, a judge in New York reached a mixed ruling. Ripple's sales to institutional investors, worth about USD 728 million, were found to be unregistered securities offerings. Its automated sales on crypto exchanges were not, and the judge said XRP in itself was not an investment contract. In August 2024, Ripple was ordered to pay a USD 125 million penalty.
Both sides appealed. In 2025 they tried to agree a softer outcome, but the judge refused. In August 2025, the SEC and Ripple withdrew their appeals, so the judgment stands and the case is over.
Other things worth knowing:
- Ripple's influence. Ripple still owns a lot of XRP, mostly in escrow. Ripple and the XRP Ledger Foundation also publish the validator lists that nodes use by default. The XRP Ledger's own documentation notes that publishers of such lists have significant power.
- Price swings. The price of XRP swingsVolatilityHow much and how quickly the price of an asset moves up and down. a lot, as with other cryptocurrencies.
XRP at Myntkaup
At Myntkaup you can buy, sell and hold XRP. You can also deposit and withdraw it on-chain on the XRP Ledger, XRP's native network.
Always choose the XRP Ledger when you send XRP. If you choose another networkBlockchain networkThe blockchain a cryptocurrency or token is recorded and sent on, such as the Bitcoin network or the Ethereum network., the transfer can be lost. When you send XRP to a crypto exchange, you often also need to fill in a destination tag, a number that tells the exchange who the transfer is for. Read more in How to send crypto to another wallet.
You can see the price of XRP on the XRP price page.
Frequently asked questions
Is XRP the same as Ripple?
No. Ripple is a company, and XRP is the currency of the XRP Ledger. The network went live a few months before the company was founded. Ripple owns a lot of XRP and uses it in its services, but anyone can use the XRP Ledger and run a node.
Will more XRP ever be created?
No. All 100 billion XRP were created at the start, and the network's rules don't allow any more. Fees are destroyed, so the total slowly shrinks.
Closing thoughts
XRP is the currency of the XRP Ledger, one of the oldest blockchains in the world, built for fast and cheap payments. Many people value XRP for its speed, its low fees and the network's long track record, and Ripple uses it in a payment service that reaches more than 60 markets.
The case with the SEC is over, but the price still swings a lot. Learn about the risks before you buy.
