XRP is the native cryptocurrency of the XRP Ledger (XRPL), one of the oldest public blockchains still in operation. The network was built for fast, low-cost cross-border payments: transactions settle in a few seconds and the fee is a fraction of a cent. XRP has also been one of the most debated assets in crypto, because of its close ties to the company Ripple, a multi-year lawsuit brought by the U.S. Securities and Exchange Commission, and the way its supply was created.
This XRP review explains how XRP differs from Ripple, how the network reaches consensus without mining or staking, why you need a Destination Tag when sending XRP to an exchange, why every wallet keeps a reserve, and how the SEC v. Ripple case ended. It is written both for beginners and for people who already hold XRP and want to understand the technical details.
You will learn the history of the project, how the XRP Ledger works, how the supply and Ripple’s escrow are structured, which features the network offers (a built-in exchange, AMM, tokens and the RLUSD stablecoin), its strengths and weaknesses, who XRP suits and how to buy and store it safely. This article is not investment advice and contains no price predictions.
- What XRP and the XRP Ledger are
- XRP history and the role of Ripple
- How XRP Ledger consensus works
- XRP supply and Ripple’s escrow
- XRP key specs: comparison table
- Fees, reserve and Destination Tag
- Network features: DEX, AMM, tokens and RLUSD
- SEC v. Ripple and XRP ETFs
- XRP pros, cons and risks
- Who XRP is for
- How to buy and store XRP
- FAQ
- Conclusion
- Sources
What XRP and the XRP Ledger are
The XRP Ledger is a decentralized, open-source public blockchain optimized for payments and asset exchange. XRP is its native coin. It is used to pay transaction fees, to cover the mandatory reserve on every account, and as a bridge asset that makes it possible to convert one currency into another quickly, even when there is no direct market between them.
The network’s defining traits are speed and predictability. A new version of the ledger closes every few seconds, and a transaction is either validated or rejected in that round. There is no need to wait for several block confirmations the way you do with Bitcoin. The XRPL has no mining and no classic staking: its security comes from its own consensus protocol, described below.
The smallest unit of XRP is called a drop: 1 XRP = 1,000,000 drops. Fees and reserves are expressed in drops in the network’s technical interfaces and APIs, so it is worth knowing the term if you ever look at raw transaction data in an explorer.
XRP history and the role of Ripple
The XRP Ledger was launched in 2012 by developers David Schwartz, Jed McCaleb and Arthur Britto. Chris Larsen joined them soon after, and together they founded the company known today as Ripple. All 100 billion XRP were created at launch, and the founders transferred a large share of them to the company to fund the development of the ecosystem.
It is important to keep three terms apart. Ripple is a private company that builds payment products for financial institutions, issues the RLUSD stablecoin and holds a large XRP treasury. The XRP Ledger is an open network run by independent validators around the world and developed by many contributors, including Ripple and the wider developer community. XRP is the coin of that network. Ripple cannot change the XRPL rules on its own, but it remains the most influential participant in the ecosystem.
Over the years the network has gained new functionality. The built-in decentralized exchange has existed since the very beginning; NFTs arrived in 2022; an automated market maker (AMM) and the RLUSD stablecoin followed in 2024; and in 2025 an EVM-compatible sidechain was launched for developers used to Ethereum tooling. If you are new to the underlying technology, our guide what is a blockchain covers the basics.
How XRP Ledger consensus works
The XRPL uses its own XRP Ledger Consensus Protocol. Instead of miners or stakers, the participants are validators: servers that propose a set of transactions for the next ledger version and vote on it. Each node chooses the list of validators it trusts, called its UNL (Unique Node List). When a sufficient supermajority of trusted validators agrees on the same set of transactions, the new ledger version closes and becomes final.
This design lets the ledger close every 3–5 seconds while using very little energy. Critics point out that in practice most nodes use recommended validator lists published by a few organizations, which raises questions about how decentralized the network really is. Supporters reply that any operator can build its own list and that Ripple itself runs only a small fraction of the validators.
Protocol changes are introduced through amendments. An amendment is activated only after it has the support of at least 80% of trusted validators for two consecutive weeks. For example, in 2026 validators have been voting on amendments that would add a native lending protocol to the network, and at the time of writing these have not yet reached the required support. This process makes upgrades slow but deliberate.
XRP supply and Ripple’s escrow
All 100 billion XRP were created when the network launched, and no new coins are ever issued. The supply can only shrink over time, because every transaction fee is burned. However, the amounts burned are small, so the total number of XRP remains close to the original figure.
Most questions concern Ripple’s holdings. In December 2017 the company locked 55 billion XRP in escrow, a native XRPL feature that releases coins on a fixed schedule. Up to 1 billion XRP is unlocked each month; the unused portion is usually placed back into a new escrow by Ripple. This makes the flow of coins to the market more predictable, but the possibility of sales by the company is still a factor the market takes into account.
You can check up-to-date data on holdings and escrow in XRPL explorers and in Ripple’s regular market reports. The figures change constantly, so avoid relying on outdated numbers from forums and social media.
XRP key specs: comparison table
| Parameter | XRP Ledger (XRP) | For comparison: Bitcoin (BTC) |
|---|---|---|
| Network launch | 2012 | 2009 |
| Consensus | XRP Ledger Consensus Protocol (validators and UNL) | Proof of Work |
| Ledger/block close time | About 3–5 seconds | About 10 minutes |
| Supply | 100 billion XRP created at launch, no new issuance | Up to 21 million BTC, issued through mining |
| Fee | From 10 drops, burned | Depends on transaction size and network load |
| Account reserve | 1 XRP base + 0.2 XRP per object | None |
| Address format | Starts with r, plus a Destination Tag for exchanges | 1…, 3…, bc1… |
| Smallest unit | 1 drop = 0.000001 XRP | 1 satoshi = 0.00000001 BTC |
| Built-in features | DEX, AMM, token issuance, escrow, NFTs | Basic scripting |
Fees, reserve and Destination Tag
The standard XRPL fee is tiny: 10 drops, or 0.00001 XRP. This amount is not paid to anyone; it is permanently burned, which protects the network against spam. Under heavy load the minimum fee rises temporarily, but it usually stays very low.
Every account must hold a reserve. Currently the base reserve is 1 XRP, and each object the account owns (a trust line to a token, an open offer on the DEX, an escrow and so on) adds 0.2 XRP. Reserved coins cannot be sent, so a new address has to be “activated” by receiving at least the base reserve. Reserve values are set by validator voting and may change.
Exchanges and many services use a single shared address for all customers and tell deposits apart by the Destination Tag, a numeric identifier. If you send XRP to an exchange without the tag, the coins reach the shared address but are not credited to your account automatically. We cover this in detail in Memo, tag and Destination Tag. For a personal non-custodial wallet, a tag is usually not required.
Network features: DEX, AMM, tokens and RLUSD
Since launch, the XRP Ledger has included a decentralized exchange with an order book: users can trade XRP and tokens issued on the network without external smart contracts. In 2024 an automated market maker (AMM) was added: liquidity pools that work alongside the order book. We compare these models with centralized platforms in DEX vs CEX.
The network lets anyone issue their own tokens through trust lines, mint NFTs and use escrow, payment channels, checks and multi-signing. In December 2024 Ripple launched the U.S. dollar stablecoin RLUSD, which runs on the XRPL and Ethereum. To understand how stablecoins work and how they differ, read what is a stablecoin.
For developers who need Ethereum-style smart contracts, the XRPL EVM sidechain launched in 2025 and is connected to the main network by a bridge. It widens what the ecosystem can do, but keep in mind that cross-chain bridges carry their own risks.
SEC v. Ripple and XRP ETFs
In December 2020 the SEC sued Ripple and two of its executives, alleging that sales of XRP were an unregistered securities offering. In response, several U.S. platforms suspended XRP trading.
In July 2023 the U.S. District Court for the Southern District of New York ruled that programmatic sales of XRP on exchanges were not offers of securities, while direct sales to institutional investors should have been registered. In August 2024 the court ordered Ripple to pay a penalty of about $125 million. In August 2025 both sides dropped their appeals and the case was closed, leaving the district court’s rulings in place.
New products followed: in November 2025 the first spot XRP exchange-traded fund began trading in the United States. We explain how such funds work and how they affect the market using Bitcoin as an example in Bitcoin ETF. Remember that regulatory decisions differ from country to country and can change.
XRP pros, cons and risks
Advantages
- Fast settlement. The ledger closes in a few seconds.
- Very low fees, which are also burned.
- Long track record. The network has been running since 2012.
- Built-in features such as a DEX, AMM, token issuance and escrow, with no third-party smart contracts.
- Legal clarity in the U.S. after the SEC case ended.
Disadvantages
- Supply concentration. Ripple holds a large amount of XRP, including coins in escrow.
- Decentralization concerns linked to recommended validator lists.
- Account reserve locks part of your funds and is unfamiliar to beginners.
- Destination Tag is easy to forget when sending to an exchange.
- Limited smart contracts on the main network compared with Ethereum.
Risks
XRP remains a volatile asset, and news about Ripple, regulation and exchange-traded products can move its price sharply. XRP is also a frequent target of scams: fake giveaways in the name of Ripple executives, counterfeit wallets and bogus “activation” websites. Nobody gives away XRP in exchange for a transfer from you, and no legitimate service will ever ask for your seed phrase or secret key.
Who XRP is for
XRP may suit people who want fast, inexpensive transfers between wallets and exchanges; those interested in payment infrastructure and asset tokenization; and those who see XRP as one of the large, liquid assets on the market and are prepared for volatility.
XRP may not suit people looking for a maximally decentralized network without a large corporate holder; those who want staking income (the XRPL has no classic staking); and developers who need a full smart contract environment on the main network.
How to buy and store XRP
You can buy XRP on a centralized exchange, through P2P trading, through exchange-traded funds where they are available, or by swapping another cryptocurrency for it. If you already hold USDT or BTC, an instant exchanger is a convenient option: on RubyCash you can exchange USDT to XRP without registration. To choose a wallet and understand the difference between custodial and non-custodial options, see what is a crypto wallet.
- Choose a wallet that supports the XRP Ledger: mobile, desktop or hardware.
- Store your seed phrase or secret key offline.
- Activate the address by receiving at least the base reserve.
- Check whether a Destination Tag is required. When sending to an exchange, the tag is mandatory if the platform provides one.
- Verify the full address: it starts with the letter r.
- Send a small test transaction first.
- Do not add trust lines to unknown tokens: this is a common scam technique.
Exchange USDT to XRP
FAQ
No. Ripple is a private company that builds payment products and holds a large XRP treasury. XRP is the native coin of the open XRP Ledger network, which is run by independent validators. Ripple cannot change the network’s rules on its own.
No. All 100 billion XRP were created when the network launched, so there is no mining. The XRP Ledger has no classic staking either: consensus is maintained by validators, who do not receive XRP rewards.
A Destination Tag is a numeric identifier that tells an exchange or service which customer to credit when XRP arrives at a shared address. If you omit the tag when sending to an exchange, the funds will not be credited automatically and you will have to contact support.
The reserve protects the ledger from being cluttered with empty accounts and objects. Currently the base reserve is 1 XRP, plus 0.2 XRP for each object such as a trust line or an open offer. These coins cannot be sent while the account owns those objects.
In 2023 the court ruled that programmatic sales of XRP on exchanges were not securities offerings, and in 2024 it ordered Ripple to pay a penalty of about $125 million over institutional sales. In August 2025 both sides withdrew their appeals and the case was closed.
A new ledger version closes roughly every 3–5 seconds, so a transfer is usually confirmed within seconds. Crediting on an exchange can take longer because of the platform’s internal procedures.
Yes. The fee for every transaction is permanently destroyed, so the total XRP supply slowly decreases. However, fees are very small, and the amount burned is tiny compared with the total number of coins.
RLUSD is a U.S. dollar stablecoin issued by Ripple and launched in December 2024. It runs on the XRP Ledger and Ethereum and is designed mainly for payments and settlement. Before buying, make sure you are using the official token from the correct issuer.
Conclusion
XRP and the XRP Ledger form a mature payment network with fast settlement, minimal fees and built-in tools for trading and issuing tokens. The end of the SEC case and the arrival of exchange-traded funds have added legal certainty and new ways to access the asset.
At the same time, XRP has specifics you need to understand: Ripple’s large holdings, the ongoing debate about decentralization, the account reserve and the mandatory Destination Tag for exchange deposits. Knowing these details helps you avoid the most common mistakes.
If you decide to use XRP, choose a reliable wallet, keep your keys offline, check the tag and address before every transfer and ignore “giveaways” in the name of well-known people. That way you can benefit from the network without taking unnecessary risks.