The XRP Ledger (XRPL) is an open-source blockchain launched in June 2012. Anyone can download the software, run a node, submit transactions or build applications without needing permission from Ripple Labs or any central authority.

The XRPL settles transactions rapidly—typically within 3 to 5 seconds—and supports approximately 1,500 transactions per second using standard hardware. Each transaction costs a fraction of a cent, and these fees are destroyed, gradually reducing the total XRP supply. Energy studies suggest the network uses about 0.0079 kWh per transaction, significantly lower than proof-of-work networks.

Key features include:

• Built-in exchange: Since launch, the XRPL has featured a decentralised exchange enabling direct token-to-token trading via a central-limit order book. An automated-market-maker (AMM) module was added in 2024, providing another on-ledger liquidity option.
• Tokenisation and NFTs: Fungible tokens and NFTs can be created in a single transaction. The XLS-20 standard, activated in October 2022, introduced native NFT support without relying on external smart contracts. This enables real-world asset tokens to settle instantly on-chain, including embedded metadata.
• Decentralised governance: Network changes are proposed as "amendments" and require sustained approval from at least 80% of validators for two weeks before activation. This allows participants sufficient time for testing and rejection if necessary. (The validator approval mechanism is further detailed in the Consensus Protocol section below.)

An active developer community contributes tooling, client software and libraries independently of Ripple, extending the XRPL’s adoption beyond Ripple’s commercial offerings. Collectively, these attributes position the XRPL as a versatile, efficient and low-cost blockchain maintained by an independent validator network.

The XRPL EVM Sidechain is an independent blockchain that brings Ethereum Virtual Machine (EVM) compatibility to the XRP Ledger ecosystem. Launched on mainnet in June 2025, it enables developers to build and deploy Ethereum-compatible decentralised applications (dApps) using Solidity and standard Ethereum tooling, while leveraging the XRP Ledger’s efficiency and liquidity.

The sidechain operates as a distinct ledger with its own Proof of Authority (PoA) consensus algorithm, separate validator set and Unique Node List (UNL). Nodes on the main XRPL and the sidechain run independently and do not share governance or state. Value and data move between the two ledgers through the Axelar bridge, with additional interoperability planned through Wormhole.

Key features of the XRPL EVM Sidechain include:

• Ethereum Compatibility: Supports Solidity, MetaMask, Hardhat and other Ethereum development tools.
• XRP as Native Gas: Transactions on the sidechain are paid in XRP, creating a unified asset model across the ecosystem.
• Independent Consensus and Governance: A separate validator network governs the sidechain, independent of the XRPL’s mainnet validators.
• High Performance: Designed for faster block times and around 1,000 transactions per second, with low transaction fees.
• Cross-Chain Interoperability: Axelar provides the initial bridge between XRPL and the sidechain. Wormhole integration is planned for future releases. Squid serves as the primary user interface for cross-chain transfers.
• Flexible Use Cases: The sidechain supports applications in DeFi, tokenisation, lending, derivatives and payments.

A growing set of infrastructure and DeFi projects is already live or in development, including Band Protocol (oracles), Grove (public RPC endpoints), Axelar (cross-chain bridge) and applications such as Strobe (lending), Securd (DeFi yield) and Vertex (derivatives trading).

The XRPL EVM Sidechain broadens the XRP Ledger ecosystem by adding general-purpose smart contracts, without altering the main ledger’s performance or consensus. This design allows XRP to serve as a bridge asset across the XRPL, the EVM Sidechain and the wider multichain ecosystem.

The XRP Ledger achieves transaction finality through a Byzantine-fault-tolerant consensus algorithm, eliminating the need for mining or staking. Every node maintains a Unique Node List (UNL) consisting of validators it considers trustworthy. During each consensus round, validators propose a set of transactions, compare these proposals within their UNL, and adjust toward majority agreement. The process repeats until at least 80% of validators agree precisely on the ledger’s contents.

The protocol prioritises accuracy and consensus over continuous operation. If fewer than 20% of trusted validators fail or behave incorrectly, consensus proceeds normally. If between 20% and 80% of validators are unreachable or malfunctioning, the network pauses instead of risking conflicting or invalid data. To create a fraudulent ledger, more than 80% of trusted validators would have to conspire.

After reaching super-majority agreement, validators independently recompute the ledger state, share their results, and mark the ledger as validated if 80% match exactly. This process occurs rapidly, usually completing within 3 to 5 seconds.

No single entity, including Ripple Labs, can force network changes. Proposed amendments activate only if supported consistently by at least 80% of trusted validators for two consecutive weeks. This rigorous process ensures network security, stability and integrity, making validator selection (through each node’s Unique Node List, or UNL) crucial to maintaining decentralised consensus and trust.

Ripple Labs Inc. is a privately-held software company that builds enterprise blockchain solutions, including cross-border payments, custody and stablecoin platforms. In contrast, XRP is the native digital asset of the XRP Ledger, an open-source blockchain launched independently of Ripple.

Key distinctions include:

• Role and usage: Ripple develops and sells software products to financial institutions; XRP functions independently on its own decentralised blockchain and can be freely used, traded or held by anyone.

• Network control: Ripple does not manage or control the XRP Ledger. Network governance, including ledger validation and amendments, relies on an independent validator network that requires 80% agreement for any changes, as previously explained.

• XRP ownership: Ripple owns a significant portion of XRP, primarily held in escrow with monthly releases. However, these holdings do not grant Ripple governance power or influence over network rules.

• Asset dependency: While Ripple's products often use XRP (notably as a bridge asset in Ripple Payments), they also support other digital assets and stablecoins such as RLUSD, underscoring XRP’s independent role.

In short, Ripple is a for-profit software vendor providing blockchain-based solutions, while XRP is a separate digital asset that exists independently of Ripple Labs and its business activities.

Ripple Labs Inc., originally founded as OpenCoin in 2012 by Chris Larsen and Jed McCaleb, adopted the Ripple name in October 2015. Based in San Francisco, Ripple employed over 1,000 people across more than 50 countries as of 2023.

Ripple specialises in blockchain-based software for financial institutions, offering solutions for cross-border payments, digital-asset custody and stablecoin issuance. Its network, RippleNet, connects banks, payment providers and fintech companies through standardised APIs, enabling instant cross-border settlements using both traditional currencies and digital assets.

In May 2023, Ripple acquired the Swiss custody technology provider Metaco for US $250 million, enhancing its institutional custody capabilities. In April 2025, Ripple announced an agreement to acquire prime broker Hidden Road for US $1.25 billion. The completion of this acquisition remains subject to regulatory approvals and other customary closing conditions.

Ripple’s stated mission is to create an "Internet of Value," where money moves as seamlessly as information does today. Its products aim to replace legacy correspondent banking models by providing liquidity on demand, removing the need for pre-funded accounts. More information on these offerings is detailed in the Ripple Payments and Ripple Custody sections below.

As of July 2025, Ripple Labs Inc. remains privately held, meaning its shares are not available on public stock exchanges. No initial public offering (IPO) filing has been recorded with the U.S. SEC, and Ripple CEO Brad Garlinghouse indicated in October 2024 that taking the company public was "not a high priority," partly due to ongoing SEC litigation. Industry analysts currently estimate that a Ripple IPO could potentially occur by late 2025 or early 2026, though this timeframe remains speculative and subject to market conditions and company decisions.

Currently, only accredited or institutional investors can purchase Ripple equity. The most active venue for secondary trading is Hiive, a platform for privately held shares. Transactions on Hiive occur between private parties but require Ripple’s approval, due to its right of first refusal. Trade volumes are generally small, settlements can take weeks, and Ripple retains authority to decline transfers.

Important factors to consider for private-market purchases include:

• Valuations vary widely and pricing transparency is limited. A tender offer from January 2024 valued Ripple at approximately US $11.3 billion.
• Private company shares do not carry mandatory public-reporting obligations, restricting investors' access to financial information.
• Transfers involve lock-up periods and may be reversed if Ripple decides on an IPO or internal share repurchase.

Most investors who do not meet accreditation criteria must wait until Ripple undertakes a public listing. After listing, Ripple’s shares would become tradable through standard brokerage accounts under an exchange ticker yet to be assigned.

Ripple Payments, previously known as On-Demand Liquidity (ODL), is Ripple Labs’ solution for real-time, cross-border transactions without the need for pre-funded accounts. Institutions connect to Ripple Payments via a single REST API, enabling them to transfer funds across borders through digital-asset exchanges. Settlement typically completes within 3 to 5 seconds.

Ripple Payments utilises a digital "bridge" asset to provide liquidity in real-time. Outside the United States, XRP is typically used as this bridge asset. In December 2024, Ripple launched its regulated U.S. dollar-backed stablecoin, RLUSD, following final approval from the New York Department of Financial Services. Institutions now have the option to use either XRP or RLUSD, depending on regulatory requirements and liquidity needs.

Client onboarding involves integrating existing payment formats (such as SWIFT or ISO 20022) with the RippleNet API. Institutions do not need to directly hold XRP or RLUSD; the platform can automatically source and convert these assets through its exchange partners.

Ripple Payments currently supports more than 90 payout markets globally. As of the first quarter of 2025, Ripple reported that Ripple Payments had processed cumulative transaction volumes exceeding US $70 billion.

Ripple holds over 60 regulatory licences worldwide, including approval from the Dubai Financial Services Authority (DFSA), granted in 2025.

Notable recent deployments include:

• UAE: Zand Bank and fintech Mamo adopted Ripple Payments using Ripple’s DFSA regulatory approval.
• Portugal–Brazil: Exchange provider Unicâmbio established a corridor utilising XRP for cross-border liquidity.
• Europe: OpenPayd integrated Ripple Payments, facilitating RLUSD issuance, redemption, and providing EUR and GBP settlement channels.

These implementations illustrate Ripple Payments’ role in replacing traditional nostro/vostro account funding with on-demand liquidity, lowering costs and reducing settlement risks.

Ripple Custody is Ripple Labs’ institutional platform for securely storing, managing and settling digital assets. Built upon the Harmonize software acquired from Metaco in May 2023 for US $250 million, Ripple Custody provides financial institutions with enterprise-grade solutions for digital asset custody and tokenisation.

Main features include:

• Private Key Control and Automation: Institutions maintain exclusive control of their private keys while automating compliance checks, transaction approvals and wallet management across hot, warm, and cold storage environments. Deployments are supported both on-premises and in the cloud, with Hardware Security Module (HSM) or Multi-Party Computation (MPC) key storage. The solution holds industry-standard certifications such as SOC 2 Type II, ISO 27001, and FIPS 140-2 Level 4.

• Asset and Ledger Integration: Ripple Custody integrates with various blockchains, including the XRP Ledger, enabling institutions to tokenise real-world assets, issue and redeem Ripple's RLUSD stablecoin, and execute trades on the XRPL’s decentralised exchange without needing to transfer assets off-platform.

• Regulatory Credentials: Ripple further strengthened its regulatory standing by acquiring Standard Custody & Trust Company in February 2024. This acquisition provided a New York–chartered trust licence, complementing Ripple's existing regulatory approvals such as the New York BitLicense and various international permissions.

As of mid-2025, Ripple Custody is operational with institutional clients across more than 15 countries, including well-known financial firms such as HSBC, BBVA Switzerland, Zodia Custody, and DZ Bank.

A complementary mobile app, Ripple Custody: Auth & Sign, provides secure credential management and allows authorised personnel to securely authorise and sign transactions directly from their mobile devices.

Ripple Labs is not a neobank. A neobank typically refers to a digital-only financial institution providing personal banking services—such as current accounts, savings, payment cards and loans—directly to individual consumers via mobile apps, without physical branches. Examples include Monzo and Starling in the UK, both regulated retail banks serving individual clients.

Ripple, in contrast, provides blockchain-based enterprise software and infrastructure to financial institutions, banks, payment providers and fintech companies. Ripple does not offer personal banking products such as current accounts, payment cards, consumer loans or other retail banking services.

However, in July 2025, Ripple applied for a national bank charter in the United States, indicating a strategic intention to operate as a regulated wholesale bank serving institutions rather than individuals. This move reaffirms Ripple's business-to-business model rather than any shift toward consumer-focused banking.

Ripple’s technology is used by banks primarily through two distinct products: Ripple Payments (covered in detail above), for real-time cross-border settlements, and Ripple Custody (also detailed earlier), for institutional digital-asset safekeeping.

Banks publicly known to use Ripple’s solutions include:

Cross-border payments:

• Zand Bank (UAE) – Implemented Ripple Payments in May 2025 following Ripple’s regulatory approval from the Dubai Financial Services Authority (DFSA), enabling real-time settlement without pre-funding.
• Banco Santander (Spain) – Utilises Ripple infrastructure for its retail remittance application, One Pay FX, providing same-day international transfers across multiple markets.
• PNC Bank (US) – Joined RippleNet in September 2018, offering commercial clients real-time receipt of international payments.

Custody and digital assets:

• HSBC – Announced plans in November 2023 to adopt Ripple Custody (based on Metaco’s Harmonize software) for institutional digital-asset custody services.
• BBVA Switzerland – Migrated its crypto custody operations to Ripple Custody in December 2023, aiming for increased operational efficiency and broader blockchain integration.
• DZ Bank (Germany) – Deployed Ripple Custody in January 2025, specifically to hold crypto-securities under German regulatory standards.
• AMINA Bank (Switzerland) – Became the first banking institution to offer custody and trading support for Ripple’s RLUSD stablecoin in July 2025.

These partnerships illustrate Ripple’s dual approach, offering solutions both for seamless fiat currency settlements and for secure institutional management of digital assets, under clearly regulated frameworks.

On 22 December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen, alleging they conducted unregistered securities offerings by selling over US $1.3 billion worth of XRP.

On 13 July 2023, Judge Analisa Torres issued a split summary judgment. The court ruled that Ripple’s direct XRP sales to institutional investors were unregistered securities offerings, but that XRP sold programmatically through public exchanges and distributions to employees were not securities.

In October 2023, the SEC dropped all charges against Garlinghouse and Larsen, focusing solely on Ripple Labs. This move eliminated the pending trial for the executives, narrowing the case to Ripple’s institutional XRP sales.

Both Ripple and the SEC initially filed appeals. However, on 19 March 2025, the SEC withdrew its appeal over the status of XRP traded on public exchanges, effectively accepting that such transactions do not constitute securities offerings. Ripple maintained a cross-appeal concerning institutional sales, though the original judgment—including a US $125 million penalty and injunction against future institutional XRP sales—remained in effect.

In May 2025, both parties jointly requested the court dissolve the injunction and reduce the penalty to US $50 million. On 26 June 2025, Judge Torres denied this request, ruling that neither party demonstrated "exceptional circumstances" to revise the final judgment. As a result, the original penalty and injunction remain in force unless overturned by a higher court.

Ripple Labs is privately held, and its shares are not publicly traded, as noted in the earlier section regarding Ripple’s public status. Ownership of the company generally divides among three main groups:

Founders and Executives

• Chris Larsen, Ripple’s co-founder and executive chair, was the largest known individual shareholder as of 2018, holding approximately 17% of the company's equity.
• Brad Garlinghouse, the CEO, held around 6.3% of Ripple's equity as reported in 2018.
• Jed McCaleb, a co-founder who left Ripple in 2013, sold most of his holdings, with any remaining stake currently undisclosed.

Employees

• Ripple operates standard employee stock-option and restricted-share plans, typically vesting over four years. Secondary sales by employees require Ripple’s approval and are subject to the company’s right of first refusal, limiting liquidity.

Venture and Strategic Investors
Ripple raised approximately US $294 million in total through multiple financing rounds:

• Seed Rounds (2013): Early investors included Bitcoin Opportunity Fund, Camp One Ventures, Core Innovation Capital, FF Angel, and Lightspeed Venture Partners.
• Series A (2015): US $32 million raised from CME Ventures, Seagate Technology, Santander InnoVentures, Google Ventures, Andreessen Horowitz, and IDG Capital Partners.
• Series B (2016): US $55 million raised, with participants including Standard Chartered, Accenture Ventures, SCB Digital Ventures, SBI Holdings, Santander InnoVentures, CME Group, and Seagate Technology.
• Series C (2019): US $200 million led by Tetragon, alongside SBI Holdings and Route 66 Ventures.
• Series C buy-back (2022): Ripple repurchased all Series C shares from investors at a valuation of US $15 billion, paid in cash.

Ownership of Ripple equity does not include its significant holdings of XRP. As of 30 September 2023, Ripple controlled approximately 5.26 billion XRP in free wallets, with an additional 41.3 billion XRP locked in monthly escrow contracts. These holdings are managed separately from company equity and do not confer governance or shareholder rights as also noted in the earlier section regarding Ripple’s consensus.