Ripple and XRP are two of the most famous names in the crypto space, being known by both industry insiders and average individuals. However, it’s quite common for people to mix them up, thinking they are one and the same thing. This confusion is understandable, given the connection between the two entities and the fact that the terms are often used interchangeably.
Caught up in spotting market trends and analyzing the latest XRP price prediction data, very few have the time or curiosity to dig deeper and see what each term signifies, assuming they both refer to the same popular cryptocurrency, which currently ranks fourth in the market. So, the misunderstanding and confusion continue, even after so many years.
However, now that Ripple/XRP seems to be gaining more ground in the crypto market, we feel it’s time to address this matter and clear up the mix-up once and for all because, for as much as they are related, Ripple is not the same as XRP. In fact, there’s a lot more to Ripple than just a crypto, so if you’re curious to learn about the differences and what else lies behind the Ripple name, stick around, and you’ll find out.
Ripple vs. XRP
XRP
Following the order of emergence, we’ll start with XRP, the digital currency we have all come to know as one of the most important players in the crypto market. XRP is the native crypto of the XRP Ledger (XRPL), also known as the Ripple Protocol, an open-source blockchain, both of which were developed between 2011 and 2012 by software engineers Jed McCaleb, David Schwartz, and Arthur Britto as a solution for fast and cheap payments.
XRP’s main purpose is to serve as a bridge currency for cross-border transactions, replacing traditional intermediaries like banks and financial institutions, which can take a long time to process transfers and tend to have quite expensive services. With the help of the XRPL, users can convert fiat into XRP, send it on the ledger, and then convert it again into the destination currency, a process that is much swifter (usually 3 to 5 seconds) and economical, given the low fees that the blockchain incurs.
Because XRP can simplify international transactions and is always readily available, it can also deliver on-demand liquidity. By using XRP instead of taking the traditional route to cross-border payments, institutions no longer need to maintain pre-funded accounts in different countries and currencies.
Ripple
We’ve determined what XRP is and what it does, but where does Ripple fit into the equation? Well, we’ll have to go back in time again to explain the connection and clarify the difference. Shortly after the launch of the Ripple Protocol and XRP in 2012, Chris Larsen joined the project, and together with XRP’s creators co-founded the Ripple company. This was originally named NewCoin, then OpenCoin, until it was finally rebranded into Ripple.
Although the creation of the XRP Ledger and its native coin XRP served as a starting point for Ripple’s emergence, over the following years the enterprise began expanding its suite of services, rolling out products that were not necessarily reliant on crypto. In 2017, the company started working on diversifying its services with the launch of its payment solution xCurrent and later its liquidity product xRapid (renamed On-Demand Liquidity, or ODL) and API interface xVia.
These services eventually converged into RippleNet, Ripple’s global payment network that serves numerous banks, payment providers and financial institutions from all across the world, helping them carry out fast and low-cost transactions. Ripple and XRP remain tied to one another, as the company uses the coin for its ODL and cross-border settlements. However, its other services can function independently of XRP. This helped Ripple distance itself from the crypto company label, and turn into something much bigger.
Long story short, Ripple is a fintech company that focuses on facilitating financial transactions through a suite of services, some of which are crypto enabled, while XRP is just one of their components, albeit one that plays an important role in the ecosystem. You can think of XRP as a wheel in the Ripple machinery, which has gotten more complex and far-reaching over time. Even if XRP would vanish all of a sudden, the Ripple company would still stand. Similarly, if the enterprise would crash, XRP would still be able to survive on its own.
Big plans ahead for Ripple
Let’s leave hypothetical scenarios behind for now and get back to current realities. Ripple seems to have big plans for the future, as the company’s CEO, Brad Garlinghouse, has recently stated. According to Garlinghouse, these plans imply expanding into traditional finance by developing new services that leverage blockchain technology.
Apparently, the company has been stacking up on conventional assets with the intention of integrating crypto-powered solutions into this area of finance. Among the purchases that Ripple made in 2025, the ones that stood out were the brokerage Hidden Road and software firm GTreasury.
Overall, Ripple has spent an estimated total of $4 billion to build its financial services empire. The company’s foray into traditional finance comes at an opportune time, as institutional demand for digital assets seems to be growing as a result of more lenient regulations from the US Securities and Exchange Commission under President Trump.
The fact that major financial organizations such as Bank of America and Citigroup have been expressing a clear interest in digital assets indicate that the merger of traditional finance and decentralized finance is inevitable, and this convergence could soon lead to the development of hybrid models that offer the best of both worlds.
Final thoughts
By the looks of it, Ripple is currently traversing quite a favorable period, free of the legal burdens that have kept it in place for so many years. At the center of all this lies the pursuit of innovation and the desire to revolutionize not just crypto but also the entire financial space, as the line between TradFi and DeFi are starting to blur.
