What is XRP?

XRP (Ripple Coin) is a digital asset launched by Ripple Labs, designed to facilitate fast and low-cost global cross-border payments. Since its inception in 2012, XRP has played a significant role in the cryptocurrency market. Recently, both the price and news surrounding XRP have seen significant growth, attracting widespread attention from investors and analysts.

The technical foundation of XRP

Ripple Labs

Ripple is a US-based financial technology company (Ripple Labs) focused on cross-border payment and financial settlement solutions based on blockchain technology. The company’s core goal is to optimize the international remittance process of traditional financial systems, improve transaction speed, and reduce costs. Ripple’s main products include:

• RippleNet: A global payment network that connects banks, payment service providers, and other institutions, providing real-time settlement and currency exchange services.
• RLUSD stablecoin: Ripple recently launched Ripple USD (RLUSD), further strengthening its financial solutions.

XRP Ledger (Blockchain Ledger Network)

The XRP Ledger (XRPL) is a decentralized ledger technology (DLT) developed by Ripple and can be seen as a blockchain alternative to the traditional SWIFT payment network. Its features include:

• Fast transaction speed (confirmed within 3-5 seconds)
• Low transaction fees (more than 60% cheaper than traditional bank transfers)
• High scalability (able to handle large-scale transactions, suitable for use by financial institutions)

The consensus mechanism of the XRP Ledger is different from Bitcoin and Ethereum. It does not rely on PoW (Proof of Work) or PoS (Proof of Stake), but is based on the Ripple Consensus Protocol, which improves network efficiency and energy efficiency.

XRP Token Application

XRP is the native token of the XRP Ledger, mainly used for:

• As a bridge currency for cross-border payments (replacing SWIFT transfer process)
• Reduce trading costs (banks and financial institutions can save a lot of fees)
• Support DeFi, NFT, and tokenized assets (XRP Ledger ecosystem can issue stablecoins, CBDC, NFTs, etc.)

Although the relationship between Ripple and XRP is close, XRP itself does not completely depend on Ripple. Even if the company shuts down, the XRP Ledger can still operate normally.

Why is XRP about to erupt?

• Regulatory issues are becoming clearer

The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) has been ongoing for many years. The SEC once accused Ripple of illegally selling XRP as securities. In July 2023, the court ruled that XRP is not a security, which is a major positive news for the market. With the gradual removal of legal risks, XRP may attract more institutional investments and drive price increases.

• Financial institutions adopt XRP

Currently, RippleNet has been adopted by more than 300 financial institutions, including:

1. Bank of America
2. Santander Bank
3. Standard Chartered Bank

These banks use XRP Ledger for cross-border payments, greatly improving the efficiency of fund transfers and reducing transaction costs. With more banks and financial institutions joining RippleNet, the demand for XRP is bound to rise.

• The impact of RLUSD stablecoin

Ripple launched Ripple USD (RLUSD) in 2025, which is a stablecoin pegged 1:1 to the US dollar and supports XRPL and the Ethereum network. The introduction of RLUSD brings greater utility to the XRP Ledger, potentially prompting more institutions to adopt XRP as a payment medium and driving up the price.

• Bull market expectations in the crypto market

After the approval of the Bitcoin spot ETF in 2024, the market is expected to enter a new bull market cycle. According to historical trends, whenever the price of Bitcoin rises, XRP tends to follow suit. If the market anticipates a larger influx of capital in 2025, XRP is likely to become one of the best-performing crypto assets.

Summary

XRP, as a digital asset launched by Ripple, occupies an important position in the cryptocurrency market with its fast, low-cost cross-border payment capabilities and strong technological foundation. As the legal dispute between Ripple and the SEC gradually clarifies, the legal risks of XRP have greatly reduced. In addition, the adoption by over 300 financial institutions and the further enhancement of the practicality of the XRP Ledger with the RLUSD stablecoin are expected to bring greater market attention and price growth by 2025.