What Is XRP in Crypto?

By Lyle Daly – Updated Jul 19, 2025 at 12:50 AM | Fact-checked by Frank Bass

Key Points

XRP facilitates quick, low-cost international payments by acting as a bridge currency on RippleNet.
XRP Ledger's unique consensus mechanism allows for efficient transaction validation, enhancing speed and reducing costs.
Despite partnership agreements, major banks generally use RippleNet for transfers without adopting XRP.

XRP (XRP -1.35%) is a cryptocurrency designed to facilitate cross-border payments. Transactions are fast and ultra-cheap, which traditionally hasn't been the case when sending money abroad. Launched by Ripple (formerly Ripple Labs) in 2012, the utility of XRP has helped it become one of the largest cryptocurrencies in the world.

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However, partnering with Ripple doesn't mean these banks are adopting XRP. Large banks generally don't need a bridge currency for international transfers. They send money through RippleNet because of the speed and low costs, but they aren't actually converting funds into XRP at any point. In addition, financial institutions that use cryptocurrency for money transfers will likely opt for stablecoins instead of XRP. Stablecoins aim to maintain a fixed value, such as $1; the price of XRP can fluctuate quickly.

XRP could still gain value for its role as a bridge currency or for its role on the XRPL. It may be a multibagger, or it could plummet in value. That's par for the course when investing in cryptocurrency. If you decide to buy XRP, limit it to a small amount of your portfolio to keep your risk manageable.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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@LyleDaly

Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, JPMorgan Chase, and XRP. The Motley Fool has a disclosure policy.

What Is XRP in Crypto?

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