In a nutshell: What is XRP? It is the native coin of the XRP Ledger, a public blockchain built to move value in seconds at a very low fee. XRP is not Ripple, the private company that uses the ledger in some of its products. All 100 billion XRP were created in 2012. None are mined. A tiny fee on each transaction is destroyed, and the US court case over XRP ended in 2025 with a mixed ruling that is still in force.
Last updated: September 30, 2026. Ledger figures, product details, and the court outcome are dated where mentioned.
What is XRP, and why does the name get mixed up with a company? XRP is one of the oldest widely traded crypto assets, and it was built for payments rather than mining. This guide explains how the XRP Ledger works, how XRP differs from Ripple and from Bitcoin, where the RLUSD stablecoin fits, and what a US court actually decided. It is background, not a price forecast.
Table of contents
What Is XRP?
XRP is the built-in coin of the XRP Ledger (XRPL), a public blockchain that went live in 2012. Court records in the SEC case say David Schwartz, Jed McCaleb, and Arthur Britto wrote the code in 2011 and early 2012 as a faster, cheaper alternative to Bitcoin mining.
The software created 100 billion XRP at launch. No more can be minted. Each XRP splits into one million drops.
Ripple’s FAQ and the XRP Ledger FAQ describe three jobs for XRP on the network:
- Fees. You spend a little XRP to submit a transaction.
- Spam protection. Each account must hold a reserve, which makes junk accounts costly.
- A bridge. XRP can sit between two other currencies on the ledger’s built-in exchange.
Anyone can use the ledger without Ripple’s permission. Ripple says it does not own the network and cannot reverse a payment, even after a theft.
Ripple vs XRP: They Are Not the Same
- Ripple is a private technology company. It sells payments, custody, and stablecoin software to banks, fintechs, and crypto businesses. It is not a public stock. Buying XRP does not give you shares or a claim on Ripple’s profits.
- XRP is the open digital asset. It exists on the ledger whether or not you use Ripple’s products.
- The XRP Ledger is the network. The XRP Ledger FAQ says Ripple does not control it, and that Ripple runs only one validator on the default recommended list.
Ripple Payments can use XRP as a bridge: value converts into XRP, crosses the ledger, and converts into the destination currency, so a provider need not pre-fund every country. Not every customer uses XRP.
How the XRP Ledger Works
The ledger does not use Bitcoin-style mining or Ethereum-style staking. Validators agree on which transactions enter the next ledger. There is no block reward, and the fee is not paid to them.
A new ledger closes every few seconds. Ripple says agreement comes every 3 to 5 seconds. XRPL documentation describes a round of about 4 to 6 seconds, accepted once about 80% of trusted validators agree.
The XRP Ledger FAQ counts more than 150 validators, with 35 or more on a default Unique Node List. Each operator can still choose whom to trust. Owning more XRP does not buy more votes. Ripple runs only one validator on that default list. Validated ledgers are public, and ordinary users cannot edit them.
Fees, reserves, and destination tags
A standard transaction costs at least 10 drops, or 0.00001 XRP, per xrpl.org. The fee can rise when the network is busy, and it is destroyed.
On September 30, 2026, live mainnet settings were a base reserve of 1 XRP per account and 0.2 XRP for each object it owns, such as an offer or a trust line. XRPL’s reserves page lists the same numbers. Validators can vote to change them. Reserved XRP generally cannot be sent away, but it can pay fees, and deleting objects frees some of it.
Exchanges often require a destination tag so they know which customer to credit. A wrong tag can strand the coins in the exchange account. The ledger cannot fix it later. Send a small test first.
XRP Supply and Escrow
Nothing is mined. The supply existed on day one, and fees slowly destroy coins. These figures are not a price view.
| Fact | Figure | What it means |
|---|---|---|
| Created at launch (2012) | 100 billion XRP | No new XRP can be minted |
| Smallest unit | 1 million drops = 1 XRP | Fees can be a fraction of one coin |
| Still on the ledger | About 99.986 billion XRP | Ledger 107,332,522, closed 12:32 p.m. PKT, Sept. 30, 2026 |
| Destroyed as fees | About 14.4 million XRP | Supply can fall, but the burn is tiny next to 100 billion |
| Escrow (2017) | 55 billion locked; up to 1 billion can release each month | A ceiling on unlocks, not an automatic sale |
| Account reserve | 1 XRP, plus 0.2 XRP per object | Live mainnet settings, Sept. 30, 2026 |
| Ledger close | A few seconds (about 3 to 5) | Bitcoin targets about 10 minutes per block |
About 14.4 million XRP burned since 2012 is roughly 0.014% of supply. That is not Bitcoin-style scarcity. In 2017 Ripple locked 55 billion XRP in escrows that can release up to 1 billion a month, as Ripple and the XRP Ledger blog describe. The ledger enforces the lock. An unlock is not a sale.
What XRP Is Used For
The original job is payments: a transfer settles in seconds, usually for a fraction of a cent. Some institutions use XRP as a bridge between currencies. People also hold, send, and trade it. Ripple’s payment volume and exchange volume are different statistics.
RLUSD is not XRP
Ripple USD (RLUSD) is a stablecoin meant to stay near $1. Ripple says each token is backed one-for-one by cash, short-term US Treasuries, and cash equivalents. Standard Custody & Trust Company, a Ripple subsidiary supervised by the New York Department of Financial Services, issues it. Ripple also cites Dubai DFSA approval. RLUSD launched in December 2024 on the XRP Ledger and on Ethereum. It is not legal tender and not FDIC-insured. XRP has no dollar peg.
In a 2026 explainer, Ripple said the OCC had given conditional approval for a national trust bank to act as collateral trustee for RLUSD reserves. Conditional approval is not a finished charter.
Other tokens, and apps next door
The ledger can track issued assets besides XRP, and it has a built-in exchange. Ethereum, by contrast, runs most of those tools as apps. See what Ethereum is. The main XRP Ledger is not that kind of computer. In 2025, Ripple said an Ethereum-compatible sidechain had launched beside it. That sidechain is a separate network.
How XRP Differs From Bitcoin
| XRP | Bitcoin | |
|---|---|---|
| Launched | 2012 | 2009 |
| Main idea | Move value quickly, including other currencies | Scarce digital money, with no company issuer |
| Supply | 100 billion at the start; fees burn a little | Mined on a schedule, capped at 21 million |
| Who writes the ledger | Validators on a unique node list; no reward | Miners competing with computing power |
| Typical wait | A few seconds | About 10 minutes per block |
| Company link | Ripple holds a large escrow and builds products; it does not own the ledger | No issuer |
Neither design is simply better. For how people buy bitcoin, see how to buy Bitcoin. For the brokerage wrapper, see the Bitcoin ETF guide.
A spot XRP fund is that kind of wrapper, not a wallet. Canary Capital’s XRP ETF (XRPC) began trading on Nasdaq on November 13, 2025, and other spot funds followed. You do not hold the coins, and you pay a fund fee.
The SEC Case, as Settled Background
This is history, not a news recap. The lawsuit is over. The result was mixed, and it still binds Ripple.
On December 22, 2020, the SEC sued Ripple and executives Bradley Garlinghouse and Christian Larsen over unregistered XRP sales. On July 13, 2023, Judge Analisa Torres ruled that XRP, as a digital token, is not in and of itself an investment contract. Exchange sales, where buyers did not know they were paying Ripple, were not securities transactions under that order. Certain direct institutional sales were, and violated the Securities Act.
On August 7, 2024, the court imposed a $125,035,150 civil penalty and a permanent injunction. It denied the much larger disgorgement the SEC wanted. Both sides appealed. On August 7, 2025, the SEC announced those appeals were dismissed. The penalty and the injunction stay in effect.
The case is closed. That is not a promise about every future sale, or every country, and XRP is not a share of Ripple. This is not legal advice.
If You Hold XRP
This is not a recommendation to buy. Practical points, if you already hold XRP or you are comparing exposure:
- Use a regulated venue where you live, or a spot fund if your broker lists one and you only want price exposure.
- For self-custody, keep the recovery phrase offline. Our crypto wallet guide explains exchange accounts versus your own keys.
- Check the destination tag, and send a small test first.
- In the US, selling or swapping crypto is generally taxable. See our crypto taxes guide. That is not personal tax advice.
Not financial advice: there is no price target here. On September 30, 2026, CoinDesk’s XRP page showed XRP near $1.48. That snapshot will go stale. It is not a forecast.
Risks to Know
- Price swings. A fast ledger does not make the coin stable.
- A large holder. Ripple’s escrow is not control of the ledger, but unlock headlines move markets.
- Trust model. Servers choose which validators to trust. That is a different bet from Bitcoin mining.
- Product risk. RLUSD, the sidechain, and exchanges can fail even if the ledger does not.
- Rules can change. The injunction on Ripple is still in force, and new laws can change how funds treat XRP.
- Scams. Anyone offering to double your XRP if you send some first is stealing.
Frequently Asked Questions
What is XRP in one sentence?
XRP is the XRP Ledger’s native coin, used for fees, reserves, and payments. It is not the company Ripple.
Is XRP the same as Ripple?
No. Ripple is a private software firm. Buying XRP does not make you a shareholder.
Is XRP a security?
In 2023 a US court said XRP is not itself an investment contract. Ripple’s exchange sales were not securities transactions; some institutional sales were. Appeals ended in August 2025, and a $125,035,150 penalty plus an injunction remain.
How is XRP different from Bitcoin?
Bitcoin is mined and capped at 21 million. XRP was created in full in 2012, is not mined, and ledgers close in seconds.
What is RLUSD?
RLUSD is Ripple’s dollar stablecoin, issued under New York oversight. It is a different asset from XRP.
Can a wrong XRP payment be reversed?
No. There is no chargeback, including for a missing destination tag or a scam.
Sources
- XRP Ledger: What is the XRP Ledger?, FAQ, transaction cost, and reserves
- XRP Ledger public data: validated ledger 107,332,522, closed 07:32 UTC (12:32 p.m. PKT) on September 30, 2026, via
s1.ripple.com - Ripple: FAQ, 2017 escrow, RLUSD oversight, and EVM sidechain
- XRP Ledger blog: escrow explained
- SEC: Litigation Release 26369 (August 7, 2025)
- SDNY: SEC v. Ripple order (July 13, 2023)
- Nasdaq: Canary XRP ETF launch (November 13, 2025)
- CoinDesk: XRP price page, about $1.48 on September 30, 2026
Disclaimer: This article is for education only. It is not financial, investment, legal, or tax advice. Crypto is volatile and you can lose money. Rulings, fund listings, reserves, and fees can change. Check primary sources and consider a licensed professional before you act.
