XRP and Ripple Difference – What Is It?

Discover the XRP and Ripple difference. Our comprehensive guide dives into the unique relationship between the digital asset XRP and Ripple.

The question, XRP and Ripple difference – what is it, is often asked by individuals seeking to understand the complex world of cryptocurrency. The relationship between Ripple and XRP is nuanced, and it’s essential to understand the distinction between the two. Let’s dive in.

Understanding Ripple and XRP

Before we can delve into the XRP and Ripple difference, it’s crucial to understand what both Ripple and XRP are.

Ripple: The Company

Ripple is a technology company that was founded in 2012 by Chris Larsen, Jed McCaleb, and Arthur Britto. The company focuses on developing payment and real-time gross settlement systems intended to revolutionize international money transfers. Ripple’s primary product is the payment network known as RippleNet.

Ripple is a company based in San Francisco.

XRP: The Digital Asset

XRP, on the other hand, is a digital asset and a cryptocurrency that was created by the same individuals who founded Ripple. It operates independently of Ripple on its decentralized blockchain, the XRP Ledger. XRP was designed to enable faster, more efficient international transactions.

XRP and Ripple Difference – What Is It?

So, what is the XRP and Ripple difference? Essentially, Ripple is a company that uses the digital asset XRP in its payment network. However, it’s critical to understand that XRP and Ripple are distinct entities, each with its own function.

XRP’s Role in RippleNet

RippleNet, Ripple’s payment network, is designed to allow fast, low-cost international money transfers between various currencies. XRP is used in this system as a bridge currency, facilitating the exchange between different fiat currencies. However, XRP’s usage is not exclusive to RippleNet, and it operates independently on the XRP Ledger.

Ownership and Control

Another significant XRP and Ripple difference lies in their ownership and control. Ripple has a significant amount of XRP in its holdings, but it does not have exclusive control over the XRP Ledger. The XRP Ledger operates based on consensus among its network of validators, which includes more than just Ripple.

Ripple’s Other Products

To further understand the XRP and Ripple difference, it’s important to know that Ripple offers more than just RippleNet. Ripple’s product suite also includes services like On-Demand Liquidity (ODL), which uses XRP, and products that do not use XRP, such as RippleX and Line of Credit. This further underscores that Ripple’s operations are not solely dependent on XRP.


In conclusion, the XRP and Ripple difference lies in their distinct, yet intertwined, nature. Ripple is a technology company that uses the digital asset XRP in one of its products, RippleNet. At the same time, XRP is a digital asset that exists independently of Ripple, with its own use cases and a decentralized ledger.

In the ever-evolving landscape of digital finance, understanding such nuances is crucial. While Ripple and XRP are closely linked, they each have their own identities and purposes in the broader ecosystem of digital assets.

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