XRP: the choice of international financial companies

The XRP Ledger and XRP are closely linked to Ripple's cryptocurrency payment system, which provides services to banks, financial institutions, businesses, and governments. However, they are positioned as independent projects.

By using XRP as part of Ripple's services, international banks and multinational companies can exchange fiat currencies in real time. This advantage is provided by the following ecosystem: the decentralized XRP Ledger blockchain, the RippleNet network, on-demand liquidity (ODL), and XRP itself. As a result, Ripple is replacing the SWIFT system for many organizations.

You can purchase XRP on all popular trading platforms. Traders buy XRP to use as collateral on exchanges, for arbitrage, and to cover margin requirements. They choose this digital asset due to its low fees, fast transaction execution, and solid market capitalization.

XRP's main competitor is the XLM token, which uses the Stellar blockchain for a similar utility (simplifying fund transfers). Stellar's founder is Jed McCaleb, one of the co-founders of the XRP Ledger.

It all began in 2011 with the development of the XRP Ledger by three California-based software engineers: David Schwartz, Jed McCaleb, and Arthur Britto. Inspired by Bitcoin, they saw its limitations in payment processing and set out to create an improved product that was faster, more eco-friendly, less resource-intensive, and cheaper. The result was a digital currency and a blockchain platform designed for decentralized applications and digital transfers.

The launch of the XRP Ledger and its digital asset XRP took place in 2012. A few months later, the aforementioned developers joined forces with Chris Larsen to form a company now known as Ripple. Currently, Ripple is led by CEO Brad Garlinghouse.

Thanks to XRP, this cross-border payment tool is in high demand by financial institutions from over 50 countries, such as Bank of America, Singaporean commercial organization NIUM, and Indian companies SBI Remit and Induslnd Bank.

XRP's market capitalization is just over $20 billion, ranking it sixth among other cryptocurrencies. Its maximum supply is limited to 100 billion coins, with 51% currently in circulation. Ripple manages 80 billion XRP, 55 billion of which are held in a cryptographically-secured escrow account.

Transactions using XRP can be completed within 3-5 seconds, with a transfer fee of only $0.0002. The XRP Ledger blockchain can process up to 1,500 transactions per second, bringing it closer to the speed of the VISA payment system.

These characteristics attract financial institutions and businesses that want to implement reliable and cost-effective infrastructure for large-scale money transfers.

XRPL, the decentralized distributed ledger, is serviced by up to 150 validators that verify transactions and record them on the blockchain. This maintains the security and stability of the network, which can handle large volumes of transactions, making it attractive for a wide range of companies to join. By joining the Ripple ecosystem, banks and other clients can easily interact with participants who are already in the network.

Additionally, Ripple provides a secure server architecture that protects against cybercrime by encrypting enterprise data with cryptography. Another key advantage of XRP is its environmental friendliness as a cryptocurrency.