{"id":37705,"date":"2022-08-16T18:28:00","date_gmt":"2022-08-16T15:28:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37705"},"modified":"2025-08-29T20:18:08","modified_gmt":"2025-08-29T17:18:08","slug":"what-are-ripple-and-the-cryptocurrency-xrp","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/what-are-ripple-and-the-cryptocurrency-xrp\/","title":{"rendered":"What are Ripple and the cryptocurrency XRP?"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Key points<\/h2>\n<ul class=\"wp-block-list\">\n<li>Ripple is a blockchain project launched in 2012 that runs on the XRP Ledger network. Transfers and settlements use its native cryptocurrency, XRP.<\/li>\n<li>Ripple aims primarily at financial institutions and aspires to be an alternative to existing interbank systems such as SWIFT.<\/li>\n<li>Ripple Labs, which stood at the project\u2019s origins, denies involvement in issuing XRP. For several years the company has faced lawsuits in the United States from investors alleging sales of unregistered securities.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Who created Ripple, and when?<\/h2>\n<p>Ripple was founded by American programmers Jed McCaleb and Arthur Britto, and cryptographer David Schwartz. The core concept belongs to Canadian programmer Ryan Fugger. After studying the Vancouver chapter of a <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%A2%D0%BE%D1%80%D0%B3%D0%BE%D0%B2%D0%B0%D1%8F_%D1%81%D0%B8%D1%81%D1%82%D0%B5%D0%BC%D0%B0_%D0%BC%D0%B5%D1%81%D1%82%D0%BD%D0%BE%D0%B3%D0%BE_%D0%BE%D0%B1%D0%BC%D0%B5%D0%BD%D0%B0\" target=\"_blank\" rel=\"noreferrer noopener\">local exchange trading system<\/a> in 2004, Fugger <a href=\"https:\/\/bitcoinmagazine.com\/articles\/introducing-ripple\" target=\"_blank\" rel=\"noreferrer noopener\">became interested<\/a> in building a decentralised payment system. In 2005 he launched the first iteration, RipplePay.com, which did not gain wide adoption.<\/p>\n<p>In 2011 Fugger handed one of the company\u2019s key management roles to Jed McCaleb. McCaleb brought in David Schwartz and hired Arthur Britto as business development manager.<\/p>\n<p>In 2012 McCaleb founded OpenCoin, appointing American entrepreneur Chris Larsen as CEO, while Fugger exited the project. In 2013 OpenCoin was renamed Ripple Labs. The company\u2019s current chief executive is Brad Garlinghouse, who succeeded Chris Larsen.<\/p>\n<p>McCaleb left Ripple Labs in 2014 and founded Stellar. Under an agreement with the team, he received 9 billion XRP\u201418.6% of total supply. The funds were paid out in tranches over the next eight years; his last sale occurred in July 2022.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How does the XRP Ledger work?<\/h2>\n<p>The Ripple ecosystem runs on the decentralised <a href=\"https:\/\/www.xrpl.org\" target=\"_blank\" rel=\"noreferrer noopener\">XRP Ledger<\/a> (XRPL). Its touted advantages include high speed (average block time of <a href=\"https:\/\/livenet.xrpl.org\" target=\"_blank\" rel=\"noreferrer noopener\">3\u20134 seconds<\/a>) and low transaction fees.\u00a0<\/p>\n<p>According to the official site, the XRP Ledger suits microtransactions in apps, NFTs and deploying DeFi protocols, as well as issuing stablecoins and CBDCs. XRPL also supports tokenising \u201ctraditional\u201d assets such as securities or fiat money.<\/p>\n<p>The primary developer of XRP Ledger is the non-profit <a href=\"https:\/\/foundation.xrpl.org\" target=\"_blank\" rel=\"noreferrer noopener\">XRPL Foundation<\/a>, founded in autumn 2020. Notable users of the blockchain include the processor BitPay, custodian BitGo and the platform for building blockchain games, Forte.<\/p>\n<p>The network uses its own consensus algorithm, the <a href=\"https:\/\/www.xrpl.org\/intro-to-consensus.html\" target=\"_blank\" rel=\"noreferrer noopener\">XRP Ledger Consensus Protocol<\/a>.<\/p>\n<p>XRP Ledger runs on nodes operated by validators. As of 16 August 2022, the network had more than 130 active validators, 35 of which were on the so\u2011called Unique Nodes List. This group is responsible for activating protocol <a href=\"https:\/\/xrpscan.com\/amendments\" target=\"_blank\" rel=\"noreferrer noopener\">amendments<\/a>. The current state of the network can be viewed on <a href=\"https:\/\/xrpscan.com\/validators\" target=\"_blank\" rel=\"noreferrer noopener\">XRPScan<\/a>.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What is the cryptocurrency XRP?<\/h2>\n<p>XRP is Ripple\u2019s native coin. One XRP is divisible into one million units called drops. The supply is 100 billion, all of which were issued at network launch: Ripple Labs received 65% of all XRP in an escrow account, and 35% entered circulation.<\/p>\n<p>XRP can be bought on most exchanges and trading platforms. Transfers require, in addition to a recipient address, a destination tag generated in the wallet. Most popular multi-asset wallets support storing and transacting XRP.<\/p>\n<p>XRP is used by large clients among financial institutions for transfers via payment bridges and is the unit of account in Ripple\u2019s interbank messaging system, RippleNet. <a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">Staking<\/a> for XRP is not provided.<\/p>\n<p>The price of XRP for individual investors is set on exchanges through open trading. The current rate can be checked on aggregators such as CoinGecko or CoinMarketCap.<\/p>\n<p>Ripple Labs, which holds substantial reserves, sells large volumes of XRP to corporate clients. According to a report <a href=\"https:\/\/ripple.com\/insights\/q1-2022-xrp-markets-report\/?utm_campaign=&#038;utm_medium=organic_social&#038;utm_source=linkedin\" target=\"_blank\" rel=\"noreferrer noopener\">published in May 2022<\/a>, total coin sales for Q1 2022 and Q4 2021 were nearly $1bn. At the same time, Ripple Labs bought $1.4bn of XRP.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What is RippleNet?<\/h2>\n<p>Ripple Labs\u2019 flagship product is RippleNet, a global network for cross-border financial operations used by banks, payment services and other financial organisations. RippleNet provides messaging, clearing and settlement of financial transactions in real time.<\/p>\n<p>RippleNet launched in 2019, combining three of the company\u2019s core products:\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li>xCurrent is a cross-border payment processing solution integrated into banking infrastructure. It improves the efficiency of traditional payment-messaging formats while matching security standards and regulatory requirements.<\/li>\n<li>On-Demand Liquidity (ODL) is a service that provides liquidity for fiat transactions. For international transfers, banks typically hold various local currencies. ODL lets them free up this capital by converting fiat into XRP\u2014the cryptocurrency acts as a \u201cbridge\u201d for the payment. First, a bank\u2019s base currency is exchanged for XRP; after the transaction is processed, the receiving bank converts XRP into its local currency. This product was previously called xRapid.<\/li>\n<li>xVia is an API designed to make it easy to use components of the RippleNet ecosystem. It requires no installation, functioning as a browser extension, and can be integrated into existing software.<\/li>\n<\/ul>\n<p>ODL, in particular, can increase demand for XRP from financial institutions. In 2021, annual payment volume via ODL rose almost eightfold from the previous year to $15bn. The Asia-Pacific region leads in ODL usage.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How is the Ripple ecosystem developing?<\/h2>\n<p>According to <a href=\"https:\/\/ripple.com\/company\/\">Ripple.com<\/a>, Ripple Labs provides commercial services to hundreds of companies in more than 50 countries. Notable clients include Australia\u2019s National Australia Bank (NAB), Canada\u2019s Canadian Imperial Bank of Commerce (CIBC), Japan\u2019s SBI Holdings and Egypt\u2019s National Bank (NBE). As of October 2021, more than 300 financial organisations <a href=\"https:\/\/www.nasdaq.com\/articles\/2-facts-about-xrp-that-you-should-know-2021-10-16\" target=\"_blank\" rel=\"noreferrer noopener\">belonged<\/a> to RippleNet.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/Ripple-min-1024x819.png\" alt=\"\u0427\u0442\u043e \u0442\u0430\u043a\u043e\u0435 Ripple \u0438 \u043a\u0440\u0438\u043f\u0442\u043e\u0432\u0430\u043b\u044e\u0442\u0430 XRP?\" class=\"wp-image-107379\" width=\"768\" height=\"614\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/Ripple-min-1024x819.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/Ripple-min-300x240.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/Ripple-min-768x614.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/Ripple-min.png 1200w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<p>Ripple Labs is not limited to cross-border payments. In early 2022 the company announced Ripple Liquidity Hub, a crypto service for institutional clients designed for trading and custody of Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash and Ethereum Classic.<\/p>\n<p>In March 2022 Ripple Labs announced 1 billion XRP in grants for developers, and a $250m fund for digital artists and creators in the non-fungible token (NFT) space.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">SEC versus Ripple Labs<\/h2>\n<p>Several years into operations, Ripple Labs began to distance itself from XRP. In July 2018 the project\u2019s website <a href=\"https:\/\/ripple.com\/insights\/difference-ripple-xrp\/\" target=\"_blank\" rel=\"noreferrer noopener\">published<\/a> a post presenting the coin as a \u201cdigital asset independent of Ripple\u201d. At the same time, the XRP distributed-ledger community <a href=\"https:\/\/xrpsymbol.github.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">rebranded<\/a> the logo and succeeded in changing the trading ticker from Ripple (XRP) to XRP (XRP) on crypto exchanges and services.\u00a0\u00a0<\/p>\n<p>The company\u2019s leadership embraced the initiative. Chief technology officer David Schwartz <a href=\"https:\/\/twitter.com\/joelkatz\/status\/1014196436374716416\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a> that the company was building a payment system and had nothing to do with creating the XRP cryptocurrency, having received it from the project\u2019s founders.\u00a0<\/p>\n<p>According to <a href=\"https:\/\/cryptobriefing.com\/mid-level-ripple-executive-hint-xrp-soars\/\" target=\"_blank\" rel=\"noreferrer noopener\">reporting<\/a> by Cryptobriefing, Ripple Labs sought thereby to avoid prosecution for trading unregistered securities\u2014a category that could have encompassed XRP.<\/p>\n<p>Despite these efforts, by August 2018 the company was <a href=\"https:\/\/twitter.com\/jchervinsky\/status\/1029385968430841856\" target=\"_blank\" rel=\"noreferrer noopener\">defending itself<\/a> in court against four class actions from investors over alleged sales of unregistered securities.<\/p>\n<p>In the <a href=\"https:\/\/twitter.com\/jchervinsky\/status\/1029385984230793216\" target=\"_blank\" rel=\"noreferrer noopener\">view<\/a> of Jake Chervinsky, a lawyer and head of policy at Blockchain Association, waiting for those cases to play out was why America\u2019s Securities and Exchange Commission (SEC) did not step in immediately.<\/p>\n<p>In December 2020, however, the SEC <a href=\"https:\/\/forklog.com\/en\/news\/sec-files-suit-against-ripple\">filed<\/a> a lawsuit against Ripple Labs, alleging that over seven years the California blockchain company sold unregistered securities in the form of XRP to retail investors. Ripple CEO Brad Garlinghouse and co-founder Chris Larsen were also named as defendants. As of mid-August 2022, the SEC\u2019s case against Ripple Labs remained unresolved.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Further reading<\/h2>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/bitfinex-history-features-and-leadership\">Bitfinex exchange: history, features, team<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-merkle-tree\">What is a Merkle tree?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-web3\">What is Web3?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-grayscale-investments\">What is Grayscale Investments?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-polygon-matic\">What is Polygon (MATIC)?<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>How did Ripple emerge, what does its ecosystem include, and why does Ripple Labs deny issuing XRP? Answers in cards.<\/p>\n","protected":false},"author":1,"featured_media":37706,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"1","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[2113],"tags":[2117,112],"class_list":["post-37705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptorium","tag-101-altcoins","tag-ripple"],"aioseo_notices":[],"amp_enabled":true,"views":"188","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=37705"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37705\/revisions"}],"predecessor-version":[{"id":37707,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37705\/revisions\/37707"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/37706"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=37705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=37705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=37705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}