What is XRP?

XRP as a bridge between currencies

XRP is a crypto-asset built for payments on the XRP Ledger. It can be sent directly, but its more distinctive use is as a bridge when two currencies do not trade directly on the network. A payment can use XRP as a bridge¹ between two issued assets. For example, a sender could exchange a dollar-denominated token for XRP and then exchange that XRP for a peso-denominated token received by someone else. The sender and recipient need not hold XRP as their final currency.

The ledger is open: using it does not require using Ripple's services. Ripple is a company that uses XRP in its payments business. The network launched in 2012² and has its own validators.

How the XRP Ledger works

Validators agree on transactions without mining. Participants choose which validators they trust³, while the ledger records the agreed result. A ledger typically closes in four to six seconds⁴. A payment involving banks or other intermediaries may take longer than its on-ledger step.

Each transaction destroys a small amount of XRP⁵ to discourage spam. All 100 billion XRP were created at the start⁶; unlike Bitcoin, no new XRP is mined.

Ripple, XRP and the XRP Ledger

Ripple is a company. XRP is the crypto-asset used for transfers, potential currency bridging and network costs. XRP Ledger is the network that records those transfers. The name “Ripple” was also used historically for the network and asset, which is why the terms still get mixed up. XRP's earlier name was “ripples”⁶. Buying XRP does not buy shares in Ripple.

Stellar and XLM also relate to cross-border payments, but Stellar focuses on issuing assets that can be exchanged during a transfer. XRP's bridge role concerns the asset used between two currencies.

Holding XRP or a Virtune ETP

Someone holding XRP directly can transfer it on the ledger and choose how to store it. Virtune XRP ETP instead offers XRP price exposure through an exchange-traded security, without the investor managing a crypto wallet. It is physically backed with XRP held as collateral⁷. The investor owns the security and cannot send it as XRP. The guide to crypto ETPs explains how these securities are bought.

Costs when buying Virtune XRP ETP

Cost	Charged by	When
Brokerage commission	Broker	On every purchase and sale
Difference between bid and ask price	Market	On every trade
Management fee, 1.49% per year	Issuer	Ongoing, from the product's value
Currency conversion	Broker, if applicable	If the product trades in another currency

Risks to understand

XRP's price can change sharply. Physical backing does not prevent a price loss. Direct ownership brings wallet or custodian risk; the ETP also has issuer, custody and exchange-trading risks. It trades during exchange hours even though XRP's price can move outside them. Crypto-assets can lose substantial value⁸, as European authorities warn.