Ripple (XRP) is one of the most talked-about cryptocurrencies in the financial world. Despite mixed opinions within the crypto community, this token boasts significant trading volume. Discover everything you need to know about Ripple, its operations, utility, and investment potential in 2025.
Ripple Labs is a US-based financial technology company founded in 2012, which aims to improve cross-border payment systems and interbank payments, making them faster, cheaper, and more secure through XRP.
The company seeks to penetrate banking markets and money transfer companies by offering solutions based on its blockchain technology.
The Ripple protocol allows two interested parties to do business and contact a third party or agent to facilitate transactions. It queries the entire Ripple network and attempts to create a chain of trust that will be used for each transaction.
The history of Ripple begins well before the creation of Ripple Labs in 2012. The initial concept dates back to 2004 with RipplePay, a peer-to-peer payment system created by Ryan Fugger, a Canadian developer. His goal was to create a decentralized financial network allowing individuals to create their own currency.
In 2011, Jed McCaleb, who had previously founded Mt. Gox (one of the first Bitcoin exchange platforms), began developing a new digital consensus system to improve Bitcoin by eliminating its dependence on energy-intensive mining. He recruited Chris Larsen, and together, they approached Ryan Fugger to reorient his project.
In 2012, Fugger handed over control of RipplePay, and OpenCoin was founded. The company quickly attracted venture capital investments from Andreessen Horowitz, Google Ventures, and others. In 2013, the company was renamed Ripple Labs, and the Ripple protocol was officially launched.
Later in 2015, the company was fined $700,000 by FinCEN for violating banking regulations, which led to restructuring and strengthened compliance measures. Since then, Ripple has continued to develop its technology and establish partnerships with financial institutions worldwide.
While the original idea for the Ripple system is attributed to Ryan Fugger, the true architects of the modern version of Ripple and XRP are Chris Larsen and Jed McCaleb.
Chris Larsen, often considered the face of Ripple, is a serial entrepreneur who had previously founded E-Loan and Prosper Marketplace. As co-founder and executive chairman of Ripple, he played a crucial role in establishing strategic partnerships with financial institutions and defining the company’s vision.
Jed McCaleb, known for founding Mt. Gox, brought his technical expertise and vision for a more efficient payment system. However, he left Ripple in 2014 following disagreements with management and subsequently founded Stellar, a direct competitor to Ripple.
Brad Garlinghouse, although not an original founder, became CEO of Ripple in 2017 and has played a decisive role in the company’s growth and strategic direction, particularly during the lengthy lawsuit with the SEC.
The United States Securities and Exchange Commission (SEC) and Ripple Labs have been in legal conflict for several years over the classification of XRP, Ripple’s native cryptocurrency.
The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company had conducted an illegal unregistered securities offering worth $1.3 billion by selling XRP.
To provide a comprehensive view of the lawsuit, here are the most notable events since its beginning :
This lawsuit was closely monitored by the entire industry, as its outcome has major implications for other cryptocurrency projects and their regulation in the United States. The favorable resolution for Ripple has strengthened XRP’s legitimacy and paved the way for wider adoption.
Ripple offers 3 main services designed to meet the specific needs of financial institutions :
A solution that uses the XRP token as a transfer medium to reduce fees for cross-border payments and make them faster. Renamed On-Demand Liquidity (ODL), this technology allows financial institutions to use XRP as a bridge between two fiat currencies, eliminating the need for pre-funding in the destination country.
This solution enables financial institutions to process international transactions at low cost and in just seconds, compared to several days with traditional systems like SWIFT.
An all-in-one banking solution that allows banks to create a standardized international payment network without necessarily using XRP.
Its Interledger Protocol (ILP) connects different payment networks and ledgers, facilitating payment exchanges between banks that also use xCurrent. This solution offers real-time bidirectional messaging, allowing banks to confirm payment details before initiating the transaction and to confirm delivery once completed.
A complete interface that offers connections to various payment networks. It allows banks to easily outsource existing processes to the blockchain and connect to RippleNet.
xVia integrates easily with existing systems as an API, enabling smooth communication between banking partners’ payment networks. This solution is particularly useful for businesses, payment providers, and banks that want to send payments across different networks using a standardized interface.
XRP is Ripple’s native cryptocurrency, designed to serve several essential functions within the Ripple ecosystem and beyond.
Its main function is to serve as a bridge currency (or settlement currency) in cross-border transactions. When a bank or financial institution wants to send money internationally, it can convert its local currency to XRP, quickly transfer the XRP across the Ripple network, and then convert it back to the destination currency.
XRP also plays a crucial role in spam prevention on the Ripple network. Each transaction on the Ripple network requires the destruction of a small amount of XRP (currently 0.00001 XRP), which discourages denial of service attacks and other malicious activities. This feature contributes to the security and stability of the network.
As a digital asset, XRP can be used as a store of value and medium of exchange, similar to other cryptocurrencies. Individuals and institutions can buy, sell, and hold XRP as an investment or to facilitate transactions.
Finally, XRP serves as a source of liquidity for financial institutions using Ripple’s services, particularly the On-Demand Liquidity solution (formerly xRapid). This liquidity enables near-instantaneous fund transfers without requiring capital previously locked in nostro/vostro accounts, thus freeing up billions of dollars currently immobilized in the global financial system.
The Ripple network operates on a unique architecture that distinguishes it from traditional blockchains like Bitcoin or Ethereum. Understanding its operation requires examining its fundamental structure and consensus mechanism.
At the heart of the Ripple network is the XRP Ledger (XRPL), a distributed ledger that records all transactions and account balances. Unlike blockchains based on proof of work (PoW) or proof of stake (PoS), the XRP Ledger uses a unique consensus algorithm called the Ripple Protocol Consensus Algorithm (RPCA).
The RPCA works through a network of validator servers that maintain a copy of the ledger and participate in the consensus process. These validators can be managed by various entities, including Ripple Labs, financial institutions, universities, and individuals. Each validator maintains a Unique Node List (UNL) of validators it trusts.
The consensus process takes place in several stages :
This approach allows the Ripple network to achieve consensus without mining, resulting in fast transactions (settlement in 3-5 seconds) and extremely low transaction fees (about 0.00001 XRP per transaction).
Like any financial technology, Ripple and its XRP cryptocurrency present advantages and disadvantages that are important to understand before investing or using the network.
Transaction Speed : The Ripple network can process approximately 1,500 transactions per second and confirm a transaction in just 3 to 5 seconds. This is considerably faster than Bitcoin (7 TPS, 10-60 minutes) or even Ethereum (15-30 TPS, 15 seconds to a few minutes).
Low Transaction Costs : Transaction fees on the Ripple network are extremely low, approximately 0.00001 XRP (a fraction of a cent), making XRP particularly suitable for international transfers and micropayments.
Energy Efficiency : Unlike proof-of-work based cryptocurrencies like Bitcoin, XRP is not mined and its consensus doesn’t require intensive computing power, making it a more environmentally friendly option.
Institutional Adoption : Ripple has established partnerships with more than 300 financial institutions worldwide, including major banks like Santander, Standard Chartered, and SBI Holdings, demonstrating real adoption in the traditional financial sector.
Clear Use Case : Unlike some cryptocurrencies whose utility remains theoretical, Ripple has a well-defined use case in cross-border payments, a multi-trillion dollar market.
Relative Centralization : Although the network is technically decentralized, Ripple Labs holds significant influence over the XRP ecosystem. The company still controls a large portion of the XRP supply (about 55 billion tokens), raising concerns about centralization.
Regulatory Risks : Despite the favorable resolution of the SEC lawsuit, XRP remains exposed to regulatory risks in different jurisdictions, as legal frameworks regarding cryptocurrencies continue to evolve.
Growing Competition : Ripple faces increased competition from other blockchain payment solutions like Stellar (founded by former Ripple co-founder Jed McCaleb), as well as central bank digital currency (CBDC) initiatives developed by governments.
Dependence on Institutional Partnerships : The long-term value and adoption of XRP heavily depend on Ripple’s ability to maintain and expand its partnerships with financial institutions, which introduces business risk.
Uneven Distribution : The initial distribution of XRP, with a large portion held by the founders and Ripple Labs, has been criticized as being less equitable than mined cryptocurrencies like Bitcoin.
In 2024-2025, XRP experienced significant volatility, marked by bullish movements following Ripple’s partial victory against the SEC in July 2023, then the complete resolution of the lawsuit in May 2025.
The price reached a peak around $3.38 in January 2025, driven by renewed investor interest. An increase in its market capitalization, which stabilized around $130 billion, positioned XRP in 3rd place among global cryptocurrencies ahead of BNB and Solana.
This performance was supported by anticipations of more favorable regulations under the government of president-elect Donald Trump. Notably with the appointment of Paul Atkins, favorable to digital assets, as head of the SEC.
In parallel, several asset managers, such as Bitwise, 21Shares, and WisdomTree, filed applications with the SEC to launch XRP-based ETFs. This initiative aims to offer investors direct exposure to XRP through regulated financial products.
Analysts identify several key levels for XRP in 2025 :
Price forecasts for XRP in 2025 vary according to experts :
These predictions should be taken with a grain of salt and do not replace a complete analysis. As always, we encourage you to do your own research.
The history of XRP is marked by significant events that have shaped its development and adoption. Here are the key moments that have marked the evolution of this cryptocurrency :
2012 – Creation of XRP : When Ripple (then OpenCoin) was founded, 100 billion XRP were created at once. Unlike Bitcoin, XRP is not gradually mined but was pre-mined in its entirety from the start.
2013 – First Banking Partnerships : Ripple began attracting attention from financial institutions, with its first banking partnerships marking the beginning of its institutional adoption.
2014 – Jed McCaleb’s Departure : Co-founder Jed McCaleb left Ripple following disagreements with management and founded Stellar, a direct competitor. He began gradually selling his significant XRP reserves, affecting the market for several years.
2015 – FinCEN Fine : Ripple was fined $700,000 by the Financial Crimes Enforcement Network (FinCEN) for violating US banking laws, leading to a restructuring of the company and strengthened regulatory compliance.
2017 – Crypto Market Boom : In the wake of the cryptocurrency market explosion, XRP experienced a spectacular rise, going from less than $0.01 at the beginning of the year to nearly $3.84 in December, an increase of more than 38,000%.
2018 – MoneyGram Partnership : Ripple announced a strategic partnership with MoneyGram, one of the largest money transfer services in the world, to use XRP in international payments.
2020 – SEC Lawsuit : In December, the SEC filed a lawsuit against Ripple, alleging that XRP sales constituted an unregistered securities offering, causing a sharp drop in price and XRP’s removal from many US exchange platforms.
2023 – Partial Victory Against the SEC : In July, Judge Analisa Torres ruled that XRP sales on exchange platforms do not constitute securities sales, marking a significant victory for Ripple.
2024 – Return to US Platforms : Following favorable developments in the SEC case, several major US exchange platforms reintroduced XRP, significantly expanding its liquidity and accessibility.
2025 – Final Resolution of the SEC Lawsuit : The SEC abandoned its appeal and reached a final agreement with Ripple, bringing complete legal clarity to XRP and paving the way for accelerated institutional adoption.
2025 – XRP ETF Filings : Several major asset managers filed applications for XRP-based ETFs, signaling potential integration into traditional finance.
Acquiring XRP tokens is an essential step for those who wish to invest in the project, participate in its governance, or use applications in its ecosystem. Due to its growing market capitalization and popularity, the XRP token is available on the majority of centralized exchange platforms (CEX).
These platforms allow you to buy XRP directly with euros or dollars via different payment methods (bank card, wire transfer). Here is our ranking of the best platforms in 2025 :
It’s important to distinguish between specialized exchange platforms (like those mentioned above) where you actually buy and hold cryptocurrencies, and brokers that sometimes offer derivative products like CFDs (Contracts For Difference) on cryptocurrencies. For direct ownership and full control of your assets, it’s preferable to use a specialized exchange platform.
Here’s how to buy XRP in 5 steps on the best platform in our ranking.
Choose a platform that meets your needs in terms of fees, security, ease of use, and regulatory compliance in your jurisdiction.
Once you’ve acquired XRP tokens, the question of their secure storage becomes paramount. Leaving your cryptocurrencies on an exchange platform (CEX) involves significant risks : you don’t directly control your private keys, and your funds could be lost in case of platform hacking, regulatory issues, or company bankruptcy.
This is why it’s strongly recommended to transfer your XRP to a personal wallet (wallet) where you alone hold the private keys. “Not your keys, not your coins” is a fundamental adage in the ecosystem.
There are mainly two types of wallets for storing your XRP :
The choice between a cold wallet and a hot wallet depends on your specific needs : prioritize a cold wallet (like Ledger) for maximum security of your main investments, and possibly use a hot wallet (like MetaMask or Trust Wallet) for smaller amounts intended for regular interactions with the DeFi ecosystem. The essential thing is to always carefully secure your recovery phrase (seed phrase) and never share it or store it digitally.
Obtaining XRP for free is possible through several methods, although the quantities generally remain modest.
Here are the main options :
Beware of scams promising large amounts of free XRP, particularly “doubling” offers which are systematically fraudulent.
XRP is considered legal in most countries, with a legal status now clarified in the United States following the favorable resolution of the SEC lawsuit in 2025. This historic decision established that XRP sales on exchange platforms do not constitute unregistered securities sales, significantly strengthening its legitimacy.
In the European Union, XRP benefits from a clear regulatory framework thanks to the MiCA (Markets in Crypto-Assets) legislation, which officially recognizes cryptocurrencies as legal digital assets. In Japan, the Financial Services Agency has also granted XRP the status of legal payment asset, facilitating its adoption in the Japanese financial system.
Some countries, however, maintain restrictions on cryptocurrencies that can affect XRP. China, for example, has imposed significant limitations on cryptocurrency transactions, although possession itself is generally not prohibited. Other jurisdictions like Russia or India have adopted ambiguous positions that regularly evolve.
It remains essential to verify the specific regulations of your country before investing in XRP, as the legal framework for cryptocurrencies continues to evolve rapidly worldwide. Recent legal clarifications have nevertheless significantly reduced the regulatory risks associated with XRP for most investors.
Ripple Labs holds the largest share of XRP, with approximately 55 billion tokens placed in an escrow account for programmed releases, representing more than half of the total supply. This significant concentration distinguishes XRP from more decentralized cryptocurrencies like Bitcoin or Ethereum, and reflects its business model oriented toward institutional partnerships.
Chris Larsen, co-founder of Ripple, is among the largest individual holders with an estimated fortune of several billion dollars in XRP, making him one of the wealthiest people in the crypto sector. Brad Garlinghouse, current CEO of Ripple, also owns a substantial amount of tokens, although the exact figures are not publicly disclosed.
Several financial institutions that are RippleNet partners hold strategic reserves of XRP to facilitate cross-border transactions and network liquidity. These partners include major banks like Santander, Standard Chartered, and SBI Holdings, which actively use Ripple technology for their international operations.
The pre-mined nature of XRP and its initial distribution controlled by Ripple Labs have sparked debates about centralization within the crypto community. However, this structure has also enabled strategic partnerships that have contributed to the rapid institutional adoption of XRP and its integration into the traditional financial system.
XRP stands out in the crypto ecosystem through its pragmatic approach aimed at improving the existing financial system rather than replacing it. This strategy, although criticized by decentralization purists, has allowed Ripple to forge strategic partnerships with more than 38 of the world’s 100 largest banks.
The favorable resolution of the SEC lawsuit has significantly strengthened XRP’s legitimacy and paved the way for accelerated institutional adoption. Recent developments, including ETF applications and growing integration into traditional banking systems, suggest significant growth potential for this cryptocurrency that combines blockchain innovation with the practical needs of the financial sector.
With its proven technology, exceptional transaction speed, and minimal fees, XRP represents one of the most mature and promising solutions for revolutionizing international payments in 2025. Its unique positioning at the intersection of traditional finance and blockchain innovation makes it a particularly interesting investment for those who believe in progressive evolution rather than total disruption of the global financial system.
Passionate about trading and cryptocurrencies, Mehdi discovered Bitcoin and blockchain technology in 2017. Since then, he has made it his mission to make the world of investing and Web3 accessible to everyone.
Ripple is the company developing payment solutions, while XRP is the cryptocurrency used on the RippleNet network to enable fast, low-cost transfers between different currencies.
According to some analysts, XRP could potentially reach $10 in the coming years—especially if institutional adoption grows and XRP-based ETFs are approved.
Ripple uses the Ripple Protocol Consensus Algorithm (RPCA), where designated validators confirm transactions without mining, allowing confirmations within seconds instead of minutes or hours.
The XRP Ledger network can process around 1,500 transactions per second, significantly faster than Bitcoin (7 TPS) or Ethereum (15–30 TPS), making it suitable for large-scale global payments.
With the SEC lawsuit resolved and Ripple’s continued expansion of banking partnerships, many experts see XRP as a promising investment for 2025, although all investments carry risks.
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