Last updated: October 2026
XRP is a digital asset that runs on the XRP Ledger, a fast, low-cost blockchain built for moving value, especially cross-border payments. XRP is designed to settle transactions in seconds for tiny fees, and it is often used as a “bridge” currency between different national currencies. The XRP Ledger was launched in 2012 by the founders of the company now known as Ripple. XRP is closely associated with Ripple but is a distinct, independent asset, a distinction that became central to a high-profile legal battle with the U.S. Securities and Exchange Commission (SEC).
Key takeaways
- XRP is the native token of the XRP Ledger, optimized for fast, cheap value transfer and cross-border payments.
- The XRP Ledger launched in 2012, built by Jed McCaleb, Arthur Britto and David Schwartz, with Chris Larsen co-founding the company behind it.
- The associated company is Ripple, which builds payment products that can use XRP.
- XRP uses a consensus protocol with validators rather than energy-intensive mining or traditional staking.
- The SEC lawsuit that began in 2020 ended in August 2025, leaving in place a 2023 ruling that XRP sales on public exchanges were not securities offerings. US spot XRP ETFs followed in November 2025.
What is XRP?
XRP is a cryptocurrency built for one job above all: moving value quickly and cheaply. Transactions on the XRP Ledger typically settle in a few seconds and cost a tiny fraction of a cent, which makes XRP well suited to payments and remittances rather than, say, complex smart-contract apps. A common use case is acting as a “bridge” asset: instead of holding many currency pairs, an institution can convert one currency into XRP, send it across the ledger in seconds, and convert it into another currency on the other side.
It is important to separate two things. XRP is the open, decentralized digital asset. Ripple is a private company that builds enterprise payment software and is a major holder and promoter of XRP, but the XRP Ledger itself is open-source and runs independently of any single company. If the basics here are new to you, our explainer on what cryptocurrency is sets the stage.
History & origin story
The XRP Ledger was created in 2012 by Jed McCaleb, Arthur Britto, and David Schwartz, who wanted a faster, more energy-efficient alternative to Bitcoin’s mining-based design. Around the same time, Chris Larsen joined as a co-founder of the company that would commercialize the technology. That company has gone by several names over the years, including OpenCoin and Ripple Labs, and is known today simply as Ripple.
When the ledger launched, a fixed total of 100 billion XRP was created at once, rather than being mined gradually over time. A large portion of that supply was given to the company to fund development and adoption, with the founders also receiving allocations. This founder-and-company allocation is a defining and frequently debated feature of XRP’s history: supporters see it as a way to fund real-world payment partnerships, while critics have argued it concentrates supply and influence. To address concerns about the company selling into the market, Ripple later placed a large amount of XRP into a cryptographically enforced escrow that releases tokens on a scheduled basis, with unused amounts typically returned to escrow.
Jed McCaleb eventually left Ripple and went on to co-found a separate project, Stellar. Ripple, meanwhile, focused on building payment and settlement products aimed at banks and financial institutions, positioning XRP as a bridge currency for international transfers.
The most consequential chapter in XRP’s history is its legal battle with U.S. regulators. In December 2020, the SEC sued Ripple and two of its executives, alleging that XRP was an unregistered securities offering and that Ripple had raised funds by selling it without proper registration. The lawsuit cast a long shadow: several U.S. exchanges delisted or suspended XRP trading while the case proceeded, and the price suffered. In July 2023, a federal judge issued a closely watched ruling that drew a distinction between different types of sales: programmatic sales of XRP on public exchanges to ordinary buyers were found not to constitute securities offerings, while certain direct institutional sales were treated differently. The decision was widely seen as a significant, if partial, win for Ripple, and many exchanges relisted XRP afterward. Both sides appealed, but in August 2025 the SEC and Ripple jointly dropped their appeals, and the Second Circuit closed the case on August 22. Ripple’s $125 million civil penalty for its direct institutional sales stood after the judge refused to reduce it.
The years after the lawsuit changed XRP’s position quickly. Ripple launched a dollar stablecoin, RLUSD, in December 2024, which runs on the XRP Ledger and Ethereum. XRP set a new all-time high of about $3.65 in July 2025, finally beating its January 2018 peak. US spot XRP ETFs launched in November 2025, starting with Canary Capital’s XRPC, and by January 2026 the group had drawn about $1.2 billion in net inflows. In December 2025 Ripple received conditional approval from the Office of the Comptroller of the Currency to form a national trust bank, focused on custody. In March 2026, a joint SEC–CFTC interpretation named XRP among 16 crypto assets treated as digital commodities. For broader context on how regulation shapes the market, see our overview of altcoins.
How XRP works
The XRP Ledger does not use Bitcoin-style mining (proof of work) or the proof-of-stake systems used by networks like Solana and Cardano. Instead it uses a distinctive consensus protocol.
The consensus protocol and validators
Transactions are validated by a network of independent validators that repeatedly agree on which transactions to include in the next ledger version. A validator follows a “Unique Node List” of other validators it trusts, and the network reaches agreement when a strong supermajority concurs. Because there is no mining race, the process is fast and energy-light, finalizing new ledger versions roughly every few seconds. Anyone can run a validator, and the validator set is not controlled by Ripple alone, though decentralization of the validator network has been a topic of ongoing discussion.
Built for payments
The ledger has payment-focused features built in, including a native decentralized exchange and support for issuing tokens. Every transaction destroys a tiny amount of XRP as a fee (this prevents spam and slowly reduces total supply over time). The design favors speed, low cost, and simplicity for value transfer over the general-purpose programmability of smart-contract platforms. To see how payment-and-transfer use cases compare with decentralized finance, our guide to what DeFi is is a helpful contrast.
Tokenomics & supply
XRP’s supply model is unusual. The entire supply of 100 billion XRP was created at launch, with no new XRP minted afterward. In fact, total supply slowly decreases over time because a small amount of XRP is burned as a fee on every transaction. Ripple holds a large portion of the supply, much of it in scheduled escrow releases, while the rest circulates in the market.
| Property | Detail |
|---|---|
| Token | XRP |
| Consensus | XRP Ledger consensus protocol (validators) |
| Total supply | 100 billion created at launch (slowly deflationary via fee burns) |
| Primary uses | Fast value transfer, cross-border bridge currency, fees |
| Ledger launch | 2012 |
Because Ripple’s escrow releases and market conditions affect how much XRP is actively circulating, it is best to consult a live data source for the current circulating figure. The structural takeaways are that the maximum was fixed at the start, no new XRP is created, and the supply gently shrinks as transaction fees are burned. For scale: roughly 62.7 billion XRP circulated in mid-2026, and Ripple’s escrow still held tens of billions more, with up to 1 billion XRP unlocked each month and unused amounts typically re-locked.
How to buy XRP
Following the resolution of the SEC case, XRP is once again widely listed on major exchanges. The process mirrors buying any large cryptocurrency: choose a reputable exchange, verify your account, deposit funds, and place an order for XRP. You can then keep it on the exchange or withdraw it to a self-custody wallet that supports the XRP Ledger. For a complete walkthrough including exchange options and storage, see our how to buy XRP guide.
You don’t need anyone to buy XRP on your behalf, and you should be wary of anyone offering to. Two do-it-yourself routes cover almost everyone: a regulated exchange app, or a spot XRP ETF bought through an ordinary brokerage or retirement account, which needs no wallet at all. If someone asks for remote access to your computer, your password or your recovery phrase “to help you buy”, it is a scam. Two XRP Ledger details also trip people up:
- Destination tags: exchanges use one shared XRP address and identify your account with a numeric tag. Always include it when depositing to an exchange, or the funds may need a lengthy manual recovery.
- Reserve requirement: a self-custody XRP address must hold a small minimum balance (the base reserve, lowered to 1 XRP in late 2024), plus a little more for each token or offer it holds. That amount can’t be spent while the account exists.
Compare XRP with other large coins in our crypto coin directory.
Staking & earning
It is worth being clear here: the XRP Ledger does not use proof of stake, so there is no native XRP staking in the way you can stake SOL or ADA. Any product advertising “XRP staking” is typically a third-party lending or yield arrangement, not protocol-level staking, and those carry counterparty and platform risk. Be especially cautious of platforms promising fixed, high “staking” returns on XRP, as these claims are a common feature of scams.
We compare those yield routes, including XRP Ledger AMM liquidity, exchange earn programs and FXRP on Flare, in our guide to earning yield on XRP without native staking.
That said, XRP holders can still earn through legitimate means such as lending it on reputable platforms, but these are fundamentally different from on-chain staking and come with their own risks. If you want to understand how custodial yield platforms work and what to scrutinize, our guide to the best crypto lending platforms covers the trade-offs. On-chain, the XRP Ledger’s built-in automated market maker lets you deposit XRP and another asset into a liquidity pool and earn trading fees, with the usual risk of impermanent loss.
Risks & is XRP a good investment?
XRP’s strengths are genuine speed, very low fees, a long operating history, and a clear real-world niche in payments. The July 2023 ruling also removed a major cloud over its U.S. legal status. But the risks are specific and important.
- Regulatory reversibility: The lawsuit is over and regulators now treat XRP as a commodity, but that treatment rests on agency interpretation and pending legislation, which future administrations could revisit.
- Supply concentration: Ripple’s large holdings and scheduled escrow releases mean a single entity has significant influence over potential market supply.
- Use-case dependence: Much of XRP’s investment thesis rests on adoption of XRP-powered payment rails; if institutions favor other settlement methods, demand may lag.
- Volatility: XRP is a highly volatile asset whose price has swung sharply around legal news and broader market cycles.
Whether XRP is a “good investment” depends on your own risk tolerance and your view of the payments thesis versus the bear case of supply overhang and regulatory uncertainty. Sizing any single altcoin position modestly within a diversified plan is a sensible default. Consider how XRP fits a broader crypto portfolio strategy, and compare it with its closest payments rival in XRP vs Stellar.
Price outlook: XRP scenarios
On 26 October 2026 XRP changed hands at about $1.28 (market cap about $81.2 billion). The full scenario analysis, covering what would have to happen for each range and which metrics to watch, now lives in our XRP price prediction.
FAQ
Is XRP the same as Ripple?
No. XRP is the open, independent digital asset that runs on the XRP Ledger, an open-source blockchain. Ripple is a private company that builds enterprise payment software and is a major holder and promoter of XRP, but it does not control the ledger by itself. The distinction is important and was central to the legal arguments in the SEC case against Ripple.
What happened with the XRP SEC lawsuit?
In December 2020, the SEC sued Ripple, alleging XRP was an unregistered securities offering, and several US exchanges suspended XRP. In July 2023, a federal judge ruled that programmatic sales on public exchanges were not securities offerings, while direct institutional sales violated securities law. Ripple was ordered to pay a $125 million penalty. Both sides dropped their appeals in August 2025, ending the case, and exchanges and ETF issuers have since listed XRP freely.
Can you stake XRP?
Not at the protocol level. The XRP Ledger uses a validator-based consensus protocol, not proof of stake, so there is no native XRP staking. Products marketing “XRP staking” are usually third-party lending or yield arrangements with counterparty risk, not on-chain staking. Be very cautious of platforms promising fixed, high “staking” returns on XRP, as such offers are a frequent feature of scams.
Why was XRP created?
The XRP Ledger was created in 2012 by Jed McCaleb, Arthur Britto, and David Schwartz, with Chris Larsen co-founding the company that commercialized it, to provide a faster, more energy-efficient alternative to Bitcoin’s mining model. XRP was designed for quick, low-cost value transfer and to serve as a bridge currency for cross-border payments, settling transactions in seconds for negligible fees.
Crypto is volatile and risky; this is education, not financial advice. Do your own research.
