Getting into cryptocurrencies can feel overwhelming at first. With so many coins out there, how do you know where to start? One name that often comes up is XRP, and that’s because it plays a unique role in payments. Unlike Bitcoin, which was built to act like digital money, XRP was designed mainly to make sending money faster and cheaper.
At the center of XRP is something called the XRP Ledger (XRPL). This is an open-source blockchain that allows transactions to happen quickly and at very low cost. Many people first hear about XRP through Ripple, a company that creates payment solutions and sometimes uses XRP in its products.
Over the years, XRP has grown into one of the largest cryptocurrencies by market value. It also has a loyal global community, often called the XRP Army, who support the project and its goal of reshaping finance.
So what exactly makes XRP different, and why does it matter in the crypto space? That’s what this guide is here to explain. You’ll learn what XRP is, how it works, and its link to Ripple. We’ll also look at the XRP Ledger, its history, and the ongoing legal issues it has faced with regulators.
By the time you’re done reading, you’ll have a clear picture of XRP’s role in the crypto world. Whether you’re thinking about buying some XRP or just curious about the technology behind it, this guide will walk you through everything in simple, beginner-friendly language.
What is XRP?
XRP is a type of digital money created to make payments faster and cheaper across the globe. It runs on the XRP Ledger (XRPL), a decentralized blockchain that processes transactions quickly and securely. Unlike Bitcoin, XRP isn’t mined. All of its tokens were created at the start, which makes it work a little differently from many other cryptocurrencies.
The main purpose of XRP is to act as a bridge currency. Imagine needing to send dollars to someone who wants euros—wouldn’t it be easier if it happened instantly without high costs? That’s exactly what XRP helps with. The network processes transactions in about three to five seconds and charges only a tiny fee.
As of August 2025, there are about 59 billion XRP in circulation, out of a maximum supply of 100 billion. This fixed supply is important because it separates XRP from coins that can be created without limit.
Like many cryptocurrencies, XRP’s price has gone through big ups and downs. It started trading under a penny, surged above $3 in 2018 during a crypto boom, and has since faced challenges, especially from regulators. Even so, it remains one of the top ten cryptocurrencies by market value.
People often see XRP in two ways: as a tool for payments and as something they can hold hoping its value will rise. Its future will depend on how widely it gets adopted, how the technology improves, and how regulators treat it. Despite all the uncertainty, one thing is clear—XRP continues to be one of the most talked-about names in the crypto world.
History of XRP
The story of XRP started back in 2011 when three developers, David Schwartz, Jed McCaleb, and Arthur Britto, began looking for a better version of blockchain. They wanted something that could process payments faster and use less energy than Bitcoin. Their idea became a reality in 2012 with the launch of the XRP Ledger.
That same year, McCaleb and Chris Larsen set up a company first called OpenCoin. Later, it changed its name to Ripple Labs, and today it is simply known as Ripple. While the company focuses on building payment solutions, XRP serves as the native currency of the XRP Ledger.
Unlike Bitcoin, which creates new coins through mining, all 100 billion XRP tokens were created at the very beginning. A large share went to the founders and Ripple Labs. This decision caused debate in the crypto community, but it also meant there was enough liquidity to use XRP in real payment systems right away.
XRP soon stood out for being fast and cheap to use. During the 2017 and 2018 crypto boom, it became so popular that it briefly reached the position of the second-largest cryptocurrency after Bitcoin.
The journey has not been without challenges. Concerns about centralization and later a major legal battle with U.S. regulators slowed its progress and affected its reputation. Even so, XRP has managed to stay among the top cryptocurrencies for more than ten years.
What is XRP Ledger (XRPL)?
The XRP Ledger, often called XRPL, is a blockchain that has been around since 2012. It was built to make payments fast, secure, and very cheap. Unlike Bitcoin, which requires energy-heavy mining to process transactions, XRPL uses a different system called a consensus protocol. This makes it quicker and much more efficient.
How fast is it? Transactions on the XRP Ledger usually finish in just three to five seconds. The cost is tiny too, often less than a cent. That’s why both individuals and financial institutions see it as a practical option. On top of that, the network can handle up to 1,500 transactions every second, which is far more than Bitcoin or Ethereum.
But is it only about payments? Not at all. Developers can use the XRPL to create decentralized apps (dApps) and even launch their own tokens. It also comes with built-in features like a decentralized exchange and escrow services, making it much more than just a payment system.
Origin of the XRP Ledger
The XRP Ledger was created by three developers: David Schwartz, Jed McCaleb, and Arthur Britto. Their main idea was simple: improve on Bitcoin by building a system that could handle more transactions, more quickly, and with less energy use. In 2012, they introduced the XRP Ledger along with its native digital currency, XRP. The launch also became the starting point for Ripple Labs, the company that began creating financial tools around the technology.
Today, the XRPL is looked after by a global community of developers and validators. Ripple still plays a role in its development, but the ledger itself runs independently from the company. This setup keeps the XRPL open-source and decentralized, meaning anyone can use it and contribute to it.
Who Is the XRP Army?
The term “XRP Army” refers to the passionate global community of people who support XRP and the XRP Ledger. You’ll often find them active on platforms like X, Telegram, and YouTube, where they share updates and defend XRP’s reputation. They also spread news about Ripple and its technology.
The group became especially noticeable during the long legal battle between Ripple and U.S. regulators. Many members spoke out strongly in favor of XRP, insisting it should be seen as a legitimate cryptocurrency. Their voices created a united front against doubts about XRP’s status.
But the XRP Army isn’t just about legal debates. They also work to promote XRP’s use in payments, decentralized finance, and other areas of blockchain. For them, XRP represents more than just a token—it’s part of a bigger vision for faster and cheaper global money transfers. Thanks to their energy and commitment, XRP continues to be one of the most talked about projects in the crypto space.
Who is Ripple?
Ripple is a technology company that builds tools to make moving money across borders faster and easier. It first started in 2012 as OpenCoin, later became Ripple Labs, and today is simply known as Ripple. The company’s big goal is simple: sending money anywhere in the world should be as quick and easy as sending an email.
Ripple creates software that connects banks, payment providers, and businesses. Its main product, now called Ripple Payments (previously RippleNet), helps organizations move money across countries in seconds. Some of these services use XRP, but Ripple has made it clear that its technology can also work without the token.
The company was co-founded by Chris Larsen and Jed McCaleb, one of the XRPL founders. Years later, Larsen brought in David Schwartz, who eventually became CTO after McCaleb’s exit. Over the years, Ripple has partnered with banks, remittance firms, and even governments to improve cross-border payments.
Ripple is headquartered in San Francisco, but it has a global presence. Unlike many crypto companies that focus on everyday users, Ripple mainly works with large institutions. This focus has made Ripple a key player in blockchain-based payments.
Relationship Between Ripple and XRP
The link between Ripple and XRP can be confusing at first. Many people think Ripple created XRP, but is that really the case? Not exactly. XRP and the XRP Ledger were launched in 2012 by independent developers. Ripple, the company, came later and focused on building financial products that use this technology.
When XRP was first launched, 100 billion tokens were created. About 80 billion of those were given to Ripple Labs to support development and fund operations. The rest went to the project’s founders and early contributors. This setup, often called a “pre-mine,” has sparked ongoing debates about how centralized XRP really is.
Ripple uses XRP in some of its tools, especially for cross-border payments and liquidity services. For example, with Ripple Payments, banks and payment providers can instantly move money between currencies. Here, XRP works as a bridge currency, making transfers quicker and cheaper than traditional systems.
But does XRP only work if Ripple is involved? The answer is no. XRP exists on its own, and anyone can use the XRP Ledger without Ripple. Developers, exchanges, and businesses all over the world continue to build on XRPL independently.
In short, Ripple supports and promotes XRP’s use, but it doesn’t fully control it. The token and its blockchain remain open-source, maintained by a wide network of validators and developers worldwide.
SEC vs. Ripple Legal Battle
One of the biggest challenges Ripple and XRP have faced is a long-running legal fight with U.S. regulators. Back in December 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple Labs. The regulator claimed Ripple had raised billions of dollars by selling XRP as an unregistered security.
Ripple pushed back, saying XRP is a digital asset, not a security. The company compared it to Bitcoin and Ethereum—two cryptocurrencies regulators had not labeled as securities. This quickly turned into one of the most closely watched legal cases in crypto history.
The lawsuit had a big effect, especially in the U.S. Several exchanges removed XRP from their platforms, and its price dropped compared to other major coins. Still, XRP has maintained strong support worldwide, thanks in large part to its passionate community known as the XRP Army.
In July 2023, Ripple scored a partial victory in court. The judge ruled that XRP sold on public exchanges was not a security, although some institutional sales could be treated differently. Many saw this as an important win for Ripple and the wider crypto industry.
Finally, in August 2025, the case came to an end. Ripple and the SEC both decided to drop their appeals, a move confirmed by the Second Circuit Appeals Court. The decision officially closed the nearly five-year legal battle that had shaped how people view XRP and affected its market performance.
XRP vs. Bitcoin
XRP and Bitcoin are both cryptocurrencies, but they were built with very different goals in mind. Bitcoin, created in 2009 by the mysterious Satoshi Nakamoto, was designed as a decentralized alternative to traditional money. It relies on a process called proof-of-work (PoW) mining, which takes a lot of energy and time to confirm transactions.
XRP, launched in 2012, was built for a different purpose—making cross-border payments faster and cheaper. Instead of mining, it uses a consensus protocol, which allows transactions to settle in about three to five seconds. Fees are tiny too, often less than a cent. Wouldn’t it be nice if sending money internationally worked that quickly?
Bitcoin is often seen as “digital gold” or a store of value. Many people buy it and hold it long-term, hoping it protects them from inflation. XRP, by contrast, is mainly used as a bridge currency, helping money move between different currencies almost instantly.
There’s also a big difference in supply. Bitcoin is limited to 21 million coins, while XRP has a cap of 100 billion tokens. This difference in scarcity plays a major role in how people value each one.
In short, both Bitcoin and XRP are important, but they serve very different purposes. Bitcoin is about decentralization and long-term value, while XRP is all about speed, efficiency, and practical payments.
Is XRP a Good Investment?
Whether XRP is a good investment really depends on how you look at its strengths and risks. Supporters often point to its speed, low fees, and growing use by financial institutions as reasons it stands out. Because it works as a bridge currency, XRP has a clear purpose that many other cryptocurrencies don’t.
Another strength is the XRP Ledger’s efficiency. Unlike Bitcoin, which relies on energy-heavy mining, XRPL uses a consensus system that confirms transactions in just seconds. This makes XRP appealing for real-world payments and partnerships with banks.
That said, XRP also comes with challenges. Its long-running legal battle with U.S. regulators has created uncertainty about its future in American markets. Even though Ripple scored a partial win in 2023, there are still open questions about how XRP will be legally classified.
XRP’s price history also shows how volatile it can be. It climbed above $3 in 2018, but later fell and traded below $1 during 2019, 2020, 2022, and 2023. More recently, it reached a new all-time high of $3.65 in July 2025 as per CoinGecko data. Like most cryptocurrencies, XRP’s price is influenced by regulation, adoption, and overall market trends.
For some people, XRP is a chance to be part of blockchain technology designed for global finance. For others, concerns about regulation and centralization make it less attractive. If you’re considering XRP, it’s important to do your research and weigh both its potential and its risks.
How Can I Buy XRP?
Buying XRP is fairly straightforward, though the exact process can depend on where you live. The first step is to pick a cryptocurrency exchange that offers XRP. Popular global platforms like Binance, KuCoin, and Bitstamp list it. In the United States, availability has been limited because of regulations, but some exchanges have started relisting XRP.
Once you’ve chosen an exchange, you’ll need to set up an account. This usually means sharing some personal details and verifying your identity with official documents. After your account is verified, you can add funds using bank transfers, debit cards, or other supported payment options.
With money in your account, you’re ready to buy XRP. Most exchanges let you purchase the token with your local currency, stablecoins, or even Bitcoin.
After buying, you can either leave your XRP on the exchange or transfer it to your own wallet. Many people prefer using a non-custodial wallet, which gives them full control of their tokens. The XRP Ledger works with different wallet types, including hardware wallets and mobile apps.
Finally, don’t forget about security. Always use a trusted exchange and turn on safety features like two-factor authentication. This extra step helps protect your account from unauthorized access.
FAQ
What Exactly Does XRP Do?
XRP was built to make sending money quicker and cheaper. It works as a bridge between different currencies. For example, a bank could use XRP to turn U.S. dollars into euros almost instantly instead of waiting days.
What Makes XRP Unique?
Unlike Bitcoin or Ethereum, XRP uses a special algorithm. It uses a system called a consensus protocol. This allows transactions to be confirmed in just seconds while using very little energy.
How Much Will 1 XRP Be Worth in 2030?
No one knows for sure, but some platforms like Changelly suggest XRP might trade between $16.37 and $28.04 by 2030. These are only predictions, not guarantees. The real price will depend on things like adoption, regulations, and how the overall market performs.
What is XRP Backed By?
XRP isn’t tied to gold, the U.S. dollar, or any other physical asset. Instead, its strength comes from the XRP Ledger technology and the global network that helps run it. Its value is shaped by supply and demand, how widely it’s used in payments, and its role in Ripple’s products.
Evans Kelvin
