Plain English
XRP is the native token of the XRP Ledger, a payment-focused L1 built by Ripple Labs. The network finalizes transactions in 3–5 seconds with fees of fractions of a cent. Marketed primarily at banks and remittance providers for cross-border settlement.
How it actually works
XRP Ledger uses a federated consensus protocol — a list of trusted validators agree on transaction order without proof-of-work mining. Ripple Labs holds a large escrowed supply (released monthly) that has historically created sell-pressure overhangs. The 2020–2023 SEC lawsuit was largely resolved in 2023 with XRP found to not be a security in programmatic sales.
What it means for you
XRP is the third-largest crypto by market cap and the dominant institutional-payment story. For HNW positioning, XRP is a directional bet on Ripple’s ability to onboard major banking corridors. Holding requires no special infrastructure; major CEXes list it. Stake is not native; XRP yields come only from CeFi or wrapped-XRP DeFi.
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Educational content only. Not investment, tax, or legal advice.