What Is Ripple (XRP)? - Forbes

We independently select all products and services. If you click through links we provide, we may earn a commission. Learn More. Advertiser Disclosure

The journalists on the editorial team at Forbes Advisor Australia base their research and opinions on objective, independent information-gathering.

When covering investment and personal finance stories, we aim to inform our readers rather than recommend specific financial product or asset classes. While we may highlight certain positives of a financial product or asset class, there is no guarantee that readers will benefit from the product or investment approach and may, in fact, make a loss if they acquire the product or adopt the approach.

To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form. As such, any recommendations or statements do not take into account the financial circumstances, investment objectives, tax implications, or any specific requirements of readers.

Readers of our stories should not act on any recommendation without first taking appropriate steps to verify the information in the stories consulting their independent financial adviser in order to ascertain whether the recommendation (if any) is appropriate, having regard to their investment objectives, financial situation and particular needs. Providing access to our stories should not be construed as investment advice or a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction by Forbes Advisor Australia. In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector. While we do go to great lengths to ensure our ranking criteria matches the concerns of consumers, we cannot guarantee that every relevant feature of a financial product will be reviewed. We make every effort to provide accurate and up-to-date information. However, Forbes Advisor Australia cannot guarantee the accuracy, completeness or timeliness of this website. Forbes Advisor Australia accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in our stories or any other information made available to a person, nor any obligation to furnish the person with any further information.

• Advisor
• Cryptocurrency

What Is Ripple (XRP)? Audited & Verified: Sep 24, 2025, 9:57am Aashika Jain Staff Editor Aashika’s near two decades stint in business and finance journalism has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC, T... Read Full Bio Aashika Jain Staff Editor Aashika’s near two decades stint in business and finance journalism has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC, T... Read Full Bio Written By Aashika Jain Aashika Jain Staff Editor Aashika’s near two decades stint in business and finance journalism has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC, T... Read Full Bio Aashika Jain Staff Editor Aashika’s near two decades stint in business and finance journalism has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC, T... Read Full Bio Staff Editor Edited By Johanna Leggatt Staff Editor Johanna Leggatt is the Lead Editor for Forbes Advisor, Australia. She has more than 20 years' experience as a print and digital journalist, including with Australian Associated Press (AAP) and The Sun-Herald in Sydney. She is a former digital sub-edi... Read Full Bio Edited By Johanna Leggatt Staff Editor Johanna Leggatt is the Lead Editor for Forbes Advisor, Australia. She has more than 20 years' experience as a print and digital journalist, including with Australian Associated Press (AAP) and The Sun-Herald in Sydney. She is a former digital sub-edi... Read Full Bio Edited Johanna Leggatt Edited By Johanna Leggatt Staff Editor Johanna Leggatt is the Lead Editor for Forbes Advisor, Australia. She has more than 20 years' experience as a print and digital journalist, including with Australian Associated Press (AAP) and The Sun-Herald in Sydney. She is a former digital sub-edi... Read Full Bio Edited By Johanna Leggatt Staff Editor Johanna Leggatt is the Lead Editor for Forbes Advisor, Australia. She has more than 20 years' experience as a print and digital journalist, including with Australian Associated Press (AAP) and The Sun-Herald in Sydney. She is a former digital sub-edi... Read Full Bio Staff Editor & 1 other

Editorial note: Forbes Advisor Australia may earn revenue from this story in the manner disclosed here. Read our advice disclaimer here.

Table of Contents

• From a Ripple to a Wave
• How Does XRP Fit In?
• How To Mine XRP
• Ripple Advantages
• Ripple Disadvantages
• Should You Buy XRP?
• Frequently Asked Questions (FAQs)

{{ tocState.toggleTocShowMore ? 'Show more' : 'Show less' }}

XRP is a digital asset designed for fast and low-cost global payments. It is best known as the native cryptocurrency of the XRP Ledger, a decentralised blockchain created by Jed McCaleb, Arthur Britto and David Schwartz.

XRP is designed to facilitate efficient cross-border transactions primarily for financial institutions and payment providers. The XRP Ledger uses the Ripple Consensus Algorithm for transaction validation.

As of September 23, 2025, XRP is the fourth largest cryptocurrency by market cap, exceeding $US169 billion, following bitcoin, Ethereum and Tether, according to CoinGecko.

Related: Top 10 cryptocurrencies

Featured Partners

From a Ripple to a Wave

Founded in 2004, Ripple (originally known as Ripplepay) is a San Francisco-based fintech firm that creates solutions for international payment systems. Before entering the cryptocurrency space in 2012, Ripple aimed to enhance traditional settlement infrastructures, making cross-border transactions faster and more cost-effective.

In 2013, the company started work on RippleNet, a robust global payments network that facilitates real-time gross settlements for financial institutions. RippleNet uses a unique consensus algorithm to validate transactions quickly and securely, allowing institutions to conduct transactions with minimal latency—often in seconds—compared to the hours or days that legacy systems take.

Designed to directly challenge the efficiency of established money transfer networks such as SWIFT, RippleNet supports a wide array of currency exchanges spanning fiat, cryptocurrencies, and even commodities, such as gold.

By leveraging XRP as a bridge currency, Ripple is designed to enhance liquidity and reduce friction in cross-border transactions. Transaction fees are kept low, typically just a fraction of a cent in XRP, to incentivise institutions to use the network when making international payments.

Related: Ripple price prediction for 2025

How Does XRP Fit In?

XRP functions as an efficient mechanism for exchanging currencies or networks, allowing for direct transfers without intermediaries. This capability enables users to send funds across borders rapidly, bypassing traditional banks or payment processors.

The peer-to-peer architecture of XRP simplifies the transaction process, completing transfers in mere seconds rather than days, thereby saving time and resources. Moreover, many banks worldwide have adopted XRP for hawala transfers, underscoring its significance in modern banking.

As one of the leading digital currencies, XRP stands out for its speed and scalability, capable of processing up to 1,500 transactions per second, with each transaction taking approximately four seconds. This efficiency positions XRP as a preferred option among many for cross-border transactions.

How To Mine XRP

XRP cryptocurrency is distinct from traditional cryptocurrencies. Unlike bitcoin and Ethereum, which are mined, XRP cannot be mined in the conventional sense; in fact, its creators aimed to eliminate mining altogether. The total supply of XRP is capped at 100 billion units, all of which were pre-mined. As a result, no new XRP will be produced, and transaction fees of 0.00001 XRP are burned, leading to a gradual decrease in supply.

Instead of mining, XRP transactions are processed through a unique consensus mechanism within the XRP Ledger, with independent validators confirming the order and validity of transactions every three to five seconds.

While you can’t mine XRP traditionally, you can earn through liquid mining. This involves providing liquidity to XRP pools on decentralized exchanges (DEXs).

Here’s a brief guide to liquid mining:

1. Choose a DEX: Select one that supports XRP liquid mining.
2. Create a wallet: Set up a compatible wallet for the DEX.
3. Deposit funds: Add XRP or another crypto to a liquidity pool, establishing your share of the pool.
4. Start mining: Your locked funds earn rewards from trading fees in the pool.

While liquid mining has its benefits— high potential returns and no expensive hardware— it is a risky proposition owing to market volatility and scams. Before embarking on liquid mining, it’s important to conduct thorough research and be aware of the risks.

Ripple Advantages

• Transaction Speed and Scalability: XRP is known for its rapid settlement times, completing transactions in seconds and processing up to 1,500 transactions per second, making it ideal for efficient cross-border payments.
• Energy Efficiency: Unlike Proof-of-Work cryptocurrencies, XRP does not require energy-intensive mining, making it an environmentally friendly option.
• Strategic Partnerships: Ripple has built strong alliances with major financial institutions, enhancing XRP’s legitimacy and driving its mainstream adoption.
• Regulatory Certainty: XRP has achieved regulatory clarity in various jurisdictions, fostering investor confidence in its long-term viability.

Ripple Disadvantages

• Centralisation Issues: XRP is often criticised for its centralised governance by Ripple Labs, which contrasts with the decentralised nature of cryptocurrencies like bitcoin. This raises concerns about control and decision-making.
• Competitive Landscape: The crowded cryptocurrency market, featuring strong competitors like bitcoin and Ethereum, poses challenges for XRP in achieving significant market share and long-term growth.
• Narrow Use Case: Primarily designed for cross-border payments, XRP lacks broader adoption in sectors like decentralised finance (DeFi) or smart contracts, limiting its overall application.
• Adoption Barriers: Despite Ripple’s efforts, XRP is not universally accepted by banks and financial institutions in Australia or abroad, hindering its integration into traditional financial systems.

Should You Buy XRP?

The last 12 months have been volatile for XRP. Looking ahead to the remainder of 2025, XRP may experience growth due to two key events: Ripple’s Swell event in November and the progress of its application for a national bank charter. This charter could enable the use of XRP and Ripple’s own stablecoin, Ripple USD, as a bridge currencies for transfers between two volatile assets.

This year will also see a review of Ripple’s application for a spot price ETF for XRP, which, if approved, could strengthen the cryptocurrency’s position in the market. Experts anticipate that XRP will continue to be volatile: in September 2025, prices dropped by nearly 4%, and this kind of price movement is likely to endure.

On the other hand, with Donald Trump as the US’s President, market observers expect clearer guidance on cryptocurrency policies. This clarity could enhance XRP’s partnerships and increase its visibility among an evolving group of cryptocurrencies.

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.

Frequently Asked Questions (FAQs)

Is XRP owned by Ripple?

XRP and Ripple are distinct entities but the two are often conflated. XRP is a digital asset that functions on the XRP Ledger, a specialised blockchain designed for swift, low-cost transactions. Ripple, the for-profit company, develops XRP and the XRP Ledger while focusing on enhancing cross-border payment solutions and leveraging XRP for liquidity and transaction efficiency.

What is the Ripple XRP lawsuit?

In 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. and two executives, alleging they raised over $US1.3 billion through an unregistered digital asset securities offering by selling XRP, which the SEC contended should have been registered as a security. On August 7, 2025, Ripple and the SEC agreed to drop their appeals, bringing their lengthy legal battle to a close. This resolution has restored investor confidence in XRP, aided by a more favourable regulatory climate under the crypto-friendly Trump administration.

Does XRP have an unlimited supply?

No. XRP currently has 59.77 billion tokens in circulation, and there is a limit of 100 billion XRP coins.

Can you mine Ripple (XRP)?

You cannot mine XRP in the traditional sense, as all 100 billion XRP were pre-mined and will be released periodically over time.

How to buy Ripple XRP in Australia?

XRP can be purchased on major centralised exchanges operating in Australia, such as Coinbase, Independent Reserve, Swyftx, and OKX. When choosing a platform, it’s important to select reputable exchanges that accept AUD and align with investment goals, preferably those based in Australia, or with a significant Australian presence, for added confidence. Remember, though, that crypto remains unregulated in Australia. You can read more in our guide to the best exchanges for Australians.

Buying Guides

• How To Buy Cryptocurrency
• How To Buy Bitcoin (BTC)
• How To Buy Ethereum (ETH)
• How To Buy Dogecoin (DOGE)
• How To Buy XRP (Ripple)
• How To Buy Cardano (ADA)
• How To Buy Monero (XMR) in Australia
• How To Buy NFTs
• How To Buy Bitcoin With PayPal
• How To Buy Bitcoin (BTC) With A Credit Card
• Top 10 Cryptocurrencies
• Best Crypto Exchanges
• Best Crypto Wallets
• Best Bitcoin ETFs

Understand Crypto Guides

• What Is Cryptocurrency?
• What Is Bitcoin (BTC)?
• What Is Ethereum (ETH)?
• What is Dogecoin (DOGE)?
• Bitcoin vs Ethereum
• How To Earn Bitcoin
• Crypto And Tax In Australia: Everything You Need To Know

Latest Crypto News

• Why Is Bitcoin Going Up?
• Cryptocurrency Statistics
• Safest Way To Store Crypto
• Crypto Crash: Is Now The Time To Buy The Dip?
• Crypto Regulation In Australia
• Understanding The Ethereum Merge

Reviews

• eToro Review

More from

• Bitcoin Price Prediction For 2025: As Good As Gold?

  By Mark Hooson Staff Writer

• Ethereum Price Prediction: Will It Be Double Or Nothing?

  By Mark Hooson Staff Writer

• Kraken Exchange Review For Australians: Features, Pros & Cons

  By Michael Adams Former Editor

• Independent Reserve Review: Features, Pros & Cons For Australians

  By Johanna Leggatt Staff Editor

• Our Pick Of The Best Cryptocurrency Exchanges For Australians

  By Mark Hooson Staff Writer

• How To Buy Bitcoin (BTC) From Australia

  By Johanna Leggatt Staff Editor

The information provided by Forbes Advisor is general in nature and for educational purposes only. Any information provided does not consider the personal financial circumstances of readers, such as individual objectives, financial situation or needs. Forbes Advisor does not provide financial product advice and the information we provide is not intended to replace or be relied upon as independent financial advice. Your financial situation is unique and the products and services we review may not be right for your circumstances. Forbes Advisor encourages readers to seek independent expert advice from an authorised financial adviser in relation to their own financial circumstances and investments before making any financial decisions. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor provides an information service. It is not a product issuer or provider. In giving you information about financial or credit products, Forbes Advisor is not making any suggestion or recommendation to you about a particular product. It is important to check any product information directly with the provider. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Contact the product issuer directly for a copy of the PDS, TMD and other documentation. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved or otherwise endorsed by our partners. For more information, read our Advice Disclaimer here.

Aashika Jain Staff Editor

Aashika’s near two decades stint in business and finance journalism has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC, Thomson Reuters, The Economic Times and Entrepreneur.