XRP is a digital asset powering the XRP Ledger (XRPL), a blockchain originally designed for cost-efficient cross-border payments but which now has expanded capabilities.
XRP was originally launched in 2012 by Ripple, with its primary use case as a bridge currency on XRPL to streamline cross-border payments, especially for remittances.
Global remittance volumes are around $900 billion annually but are very expensive compared to other types of transactions. The latest data from the World Bank indicate that sending remittances costs 6.7% on average; bank-based channels cost even more, charging users 13.7% on average.[1]
Cross-border payments can also be relatively slow. Wholesale payments over the SWIFT system generally settle in less than two hours. However, retail payments can take more than two days to settle over the slowest routes.[2]
In contrast, the XRPL settles transactions in around 4 seconds and for less than 1 cent.[3] If XRPL were to see broader adoption in the market for global remittances, it could dramatically lower costs for end consumers.
Although the XRPL is not designed for arbitrary smart contracts, the blockchain does natively support a variety of applications, including token issuance, a decentralized exchange, and non-fungible tokens.
In December 2024 Ripple launched the RLUSD stablecoin under a charter from the New York State Department of Financial Services, the state’s primary financial services regulator and issuer of the BitLicense (the regulatory framework for digital asset businesses).
RLUSD and XRP serve as core assets for Ripple Payments, enhancing network efficiency and user experience. While Ripple may support additional fiat-backed stablecoins in the future, RLUSD currently enables customers to facilitate digital asset payments across markets.
TOKEN
XRP is the native digital asset of the XRP Ledger. It is used to pay transaction fees, facilitate real-time liquidity provisioning, and serve as a neutral bridge between fiat currencies. Because XRP is required for transaction execution on XRPL, it plays a foundational role in supporting secure, efficient, and scalable payment activity across the network.
USE CASES
Cross-Border Remittances: XRP enables fast, low-cost international value transfers, especially for underbanked or high-cost corridors.
FX Market Efficiency: XRP can settle foreign exchange transactions in three to five seconds, helping reduce the time, cost, and complexity of traditional cross-border payments.
Bridge Currency: Financial institutions use XRP to intermediate between different fiat currencies without needing pre-funded accounts.
Asset Platform & Tokenization: XRPL supports natively issued tokens called “Currencies.” According to data provider XRP Market, the current market of natively issued tokens is now about $400 billion.[4] The network also supported tokenized real-world assets (RWAs), which today total around $369 million.[5]
Programmability via Sidechains: The XRPL Ethereum Virtual Machine (EVM) sidechain lets Solidity apps interoperate and bridge assets with XRPL.[6]
INVESTMENT THESIS
XRP offers targeted exposure to the evolution of global payment infrastructure — an area with significant institutional relevance and real-world scale.
Purpose-Built Infrastructure: XRPL was specifically designed for fast, low-cost payments and asset transfers. Increased programmability via the EVM sidechain broadens the possibility of new applications for users.
Adapting for Growth: Ripple and the broader XRP community are expanding the functionality of the XRPL to encompass more use cases like tokenized assets. RLUSD growth and rising RWA issuance on XRPL could expand XRP’s role as a bridge asset.
Regulatory Momentum: Court decisions have clarified key aspects of XRP’s legal status in the U.S., helping reduce uncertainty around adoption.
Technical Efficiency: XRPL confirms over 1,500 transactions per second, with typical fees around $0.0002 and transaction finality in 3 to 5 seconds.
We believe XRP has the technical capability to help modernize global remittances and other cross-border payments by delivering faster, cheaper transactions at meaningful scale.
[1] Source: World Bank Remittance Prices Worldwide, Q3 2024.
[2] Source: Bank for International Settlements (BIS), Committee on Payments and Market Infrastructures, February 2022.
[3] Source: Coin Metrics. Data as of November 3, 2025. For illustrative purposes only.
[4] Source: XPMarket. Data as of November 3, 2025.
