What Is the XRP Ledger?

The XRP Ledger (XRPL) is an open-source, decentralized blockchain launched on September 26, 2012 by David Schwartz, Jed McCaleb, and Arthur Britto. Unlike Bitcoin which uses proof-of-work mining, the XRPL uses a unique Federated Consensus mechanism where a network of independent validators agrees on transaction validity without energy-intensive computation.

Key performance metrics: transaction finality in 3-5 seconds, fees of approximately $0.0001 per transaction, and capacity to handle 1,500 transactions per second. The network currently has over 150 active validators operated by universities, exchanges, businesses, and individuals worldwide.

What Is RippleNet?

RippleNet is Ripple Labs' global payments network built on top of the XRP Ledger infrastructure. It connects banks, payment providers, and digital asset exchanges to enable fast, low-cost international money transfers. RippleNet uses XRP as a bridge currency to provide on-demand liquidity (ODL), eliminating the need for pre-funded nostro accounts that traditional banks rely on for cross-border transfers.

RLUSD Stablecoin

In late 2024, Ripple launched RLUSD — a stablecoin backed 1:1 by US dollars — available on both the XRP Ledger and Ethereum. RLUSD is issued by Standard Custody and Trust Company, a Ripple subsidiary, and serves as a stable medium of exchange within the Ripple ecosystem, complementing XRP for institutional use cases.

EVM Sidechain

In June 2025, the XRP Ledger launched an EVM-compatible sidechain enabling Solidity-based smart contracts and decentralized applications (dApps) to run on XRPL infrastructure with XRP used for gas fees via Axelar bridge. This expansion significantly broadened the XRPL developer ecosystem.