Understanding Ripple
Let me explain Ripple to you directly: it's a blockchain-based digital payment company that built a network and protocol around the cryptocurrency XRP and the XRP Ledger. I see its primary role as a payment settlement, asset exchange, and remittance system, much like the SWIFT network that banks and financial intermediaries use for cross-currency dealings.
Think of Ripple's products as a temporary global settlement layer that businesses and individuals can rely on for seamless transactions.
Key Takeaways
- Ripple is a blockchain-based digital payment network and protocol that relies on the XRP Ledger and XRP.
- The company generates revenue through cross-border payment and crypto liquidity services for businesses.
- As one of the earliest players, Ripple operates in the blockchain and cryptocurrency financial services sector.
- In January 2025, Ripple got approval for and launched its U.S. dollar-backed stablecoin, RLUSD.
Ripple's Place in the Industry
Ripple fits into the financial technology industry, where it delivers blockchain and cryptocurrency services for cross-border payments, crypto liquidity, and central bank digital currencies. Its platforms leverage the XRP Ledger and the native token XRP to make this happen.
What sets Ripple apart is that it pioneered the first financial services platform and network tailored for enterprises using blockchain and cryptocurrency. I've noted how it develops products that provide liquidity, employing cryptocurrency as a bridge to accelerate international transactions and cut costs.
On top of that, Ripple assists countries in developing their own central bank digital currencies via its dedicated CBDC platform.
Fundraising and Financial Details
Since starting in 2012, Ripple has completed 14 fundraising rounds, pulling in a total of $293.8 million. Recent investors include Uday Kumar Bangalore Shivaraman, The K Fund, and Azure Ventures Group.
The latest valuation for the company exceeds $11 billion, factoring in a rumored $285 million stock repurchase in 2024.
History and Leadership
Ripple was established in 2012 by Chris Larsen, David Schwartz, Arthur Britto, and Jed McCaleb, building on initial work for the XRP Ledger. Originally called OpenCoin, it underwent several name changes before settling on Ripple.
Let me tell you about the founders: Chris Larsen brings a strong background in financial technology successes; David Schwartz is a versatile engineer with extensive software development experience; Jed McCaleb has been in software and cryptocurrency since the early 2000s; and Arthur Britto is a seasoned software engineer in programming.
Current Leadership
- Chief Executive Officer: Brad Garlinghouse
- Chief Technical Officer: David Schwartz
- President: Monica Long
- Chief Financial Officer: Jon Bilich
Recent Developments
Ripple has been growing by acquiring companies in cryptocurrency and complementary tech. In 2023 and 2024, it bought Standard Custody & Trust and Metaco, both crypto custody providers. These moves should support Ripple's push into crypto liquidity for institutions and decentralized finance solutions.
Back in 2020, the SEC sued Ripple, claiming it sold unregistered securities during fundraising. In 2023, Judge Analisa Torres ruled that XRP isn't a security on exchanges but is when sold to institutions. The SEC dropped charges against Chris Larsen and Brad Garlinghouse but sought nearly $2 billion in fines, which Ripple fought.
By August 2024, Ripple was fined $125 million by the SEC, closing the case. Also in 2024, Ripple launched its stablecoin backed by cash and equivalents, approved by the New York Department of Financial Services in January 2025, and partnered with major exchanges.
Does Ripple Have a Future?
Ripple positions itself to help businesses tap into blockchain and cryptocurrency for payments without the hassle of building or maintaining their own systems or using public blockchains. Its future hinges on the demand for these services.
How to Buy Ripple Stablecoin
Ripple's stablecoin, RLUSD, received approval from the New York Department of Financial Services in January 2025. You can purchase it on major global exchanges like Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, Sologenic, and Bullish.
Will RLUSD Use XRP?
RLUSD is a distinct virtual asset and won't involve XRP. It's designed to be fully backed 1:1 by cash and cash equivalents.
The Bottom Line
Ripple is a blockchain services and technology company offering financial solutions worldwide. It was founded by developers who also created XRP and the XRP Ledger, and while it uses the ledger for its products, it doesn't own or maintain it.
As the first to integrate blockchain and cryptocurrency into a global enterprise financial network, Ripple navigates a nascent industry with challenges like regulatory issues and lawsuits.
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