What is Ripple (XRP)?
Ripple refers to both a payment network (RippleNet) and a cryptocurrency (XRP). While "Ripple" often refers to Ripple Labs, the company, XRP is the digital asset used for fast, low-cost cross-border payments. The terms are frequently used interchangeably, though technically XRP is the cryptocurrency token that powers Ripple's payment solutions.
Ripple vs XRP: Understanding the Difference
Ripple Labs: The company that develops payment technologies and solutions for banks and financial institutions. Founded in 2012, Ripple Labs creates enterprise blockchain solutions for global payments.
XRP: The cryptocurrency token that powers some of Ripple's products, particularly On-Demand Liquidity (ODL). XRP facilitates fast cross-border transactions and serves as a bridge currency between different fiat currencies.
RippleNet: The payment network connecting banks and payment providers worldwide. Uses blockchain technology but doesn't necessarily require XRP for all transactions.
Ripple Price vs XRP Price
When people search for "Ripple price," they typically mean the XRP token price. The XRP cryptocurrency trades on major exchanges and has its own market value independent of Ripple Labs' company valuation. Current Ripple (XRP) price: ${= number_format($avg_price, 4) ?>
How Ripple Uses XRP
Ripple's On-Demand Liquidity (ODL) product uses XRP as a bridge currency for instant cross-border payments. When a payment provider sends money internationally using ODL, XRP converts the source currency, transfers value across borders in seconds, then converts to the destination currency. This eliminates the need for pre-funded nostro accounts and reduces settlement times from days to seconds.
Ripple's Impact on XRP Price
Ripple Labs' business developments, partnerships, and regulatory outcomes significantly impact XRP price. Major bank partnerships, expansion into new markets, and legal clarity tend to boost XRP prices. The company's quarterly XRP market reports provide transparency about XRP sales and market activity.
For price forecasts, see XRP predictions, or check live prices.