What is XRP?

XRP is the native token of the XRP Ledger, a Layer 1 blockchain designed for global payments. Founded in a modern form by Jed McCaleb and Chris Larsen, with origins tracing back to 2004, the network facilitates near-instant cross-border settlements. XRP serves as a bridge asset between fiat currencies, helping financial institutions reduce liquidity costs and eliminating the need for pre-funded accounts. The network processes around 1,500 transactions per second and employs a federated consensus protocol for transaction validation.

The governance model relies on a Unique Node List of trusted validators who must achieve an eighty percent consensus to confirm transactions. A small amount of XRP is burned with each transaction to protect the network from spam. Institutional adoption increased significantly with the approval of spot XRP ETFs by the SEC in November 2025, leading to listings on major exchanges. While Ripple is a main contributor, the XRP Ledger functions as an open-source decentralized network.