How Ripple is changing the rules of international payments

In the world of cryptocurrencies, where Bitcoin and Ethereum set the tone for decentralization, Ripple (XRP) takes a different path, seamlessly blending innovation with the needs of the traditional financial sector. As of early 2025, XRP holds a position among the top five cryptocurrencies by market capitalization, which stands at approximately $136 billion USD, underscoring its significance and influence.
 

This article delves into the essence of Ripple—from its technological foundation to its prospects for investors—relying on up-to-date data and facts to highlight its unique role in the cryptocurrency market.

What is Ripple in Simple Terms?

Ripple (XRP) is not just a cryptocurrency but a comprehensive platform designed to simplify and reduce the cost of international financial transfers. As of early 2025, XRP consistently ranks among the top five crypto assets by market capitalization, competing with giants like Bitcoin and Ethereum.
 

The key to XRP’s popularity lies in its lightning-fast transaction processing and minimal fees. Leading financial institutions, including Santander, American Express, and Standard Chartered, have integrated Ripple’s solutions to optimize cross-border payments. According to RippleNet data, transaction volume grew by 350% in 2024 compared to the previous year, reaching a milestone of 2 million operations daily. This momentum demonstrates that Ripple successfully serves as a bridge between traditional finance and digital assets.

Origins and Evolution of Ripple (XRP)

Ripple was born in 2012 through Ripple Labs, initially called Opencoin. It was founded by Chris Larsen and Jed McCaleb in San Francisco with an ambitious goal: to make international transfers faster and more affordable, challenging the outdated and cumbersome SWIFT system.
 

Unlike Bitcoin, created as an independent alternative to traditional currencies with an emphasis on privacy, or Ethereum, which supports smart contracts and decentralized platforms, Ripple focused on the needs of banks and financial institutions. Its primary task is to ensure payment processing in mere seconds (3–5 seconds) with minimal fees. The native token, XRP, is not mined, unlike Bitcoin, which annually consumes about 130 TWh of electricity.
 

The entire supply of XRP—100 billion coins—was created at launch. Ripple Labs controls 55% of these assets, gradually releasing them into the market. This model, combined with its focus on collaboration with financial institutions, sets Ripple apart from other cryptocurrencies, giving it a more centralized character.

Ripple’s Technological Foundation

RippleNet is an innovative payment network that integrates banks, payment services, and financial institutions, relying on the XRP Ledger (XRPL)—a distributed ledger with open-source code. Unlike a traditional blockchain, XRPL uses a consensus mechanism that depends on the agreement of the majority of validators selected from a pre-defined list of unique nodes (Unique Node List, UNL). This approach eliminates the need for high computational power, ensuring high transaction speeds and a lower degree of decentralization in governance.

High Speed and Cost-Effectiveness of Transactions

The XRP Ledger can process up to 1,500 transactions per second, significantly surpassing Bitcoin’s capabilities (7 TPS) and approaching the throughput of Visa (1,700 TPS). Transaction confirmation takes just 3–5 seconds, with an average fee of about 0.00001 XRP, equivalent to fractions of a cent at early 2025 exchange rates. These micro-fees are not distributed among network participants but are «burned,» which helps reduce inflationary pressure and makes transfers far cheaper compared to the traditional SWIFT system, where costs can reach 3–5% of the transaction amount.

XRP’s Role as a Universal Intermediary

XRP functions as a bridge currency, simplifying exchanges between different fiat currencies, especially in pairs with limited liquidity. For instance, instead of a complex direct exchange between Thai baht (THB) and Mexican pesos (MXN), a financial institution can quickly convert THB to XRP and then XRP to MXN. This process takes seconds, enhancing efficiency and reducing costs for international transfers.

XRP’s Investment Potential

XRP’s price has historically experienced significant fluctuations. Starting at $0.01 in 2012, the token reached a record high of $3.84 in January 2018 but fell to $0.17 in 2020 due to a lawsuit from the SEC. In 2024, XRP’s average price remained in the $2.5–3 range, with the potential to rise to $5 if partnerships with financial institutions expand and legal issues are resolved.
 

However, regulatory uncertainty remains a major obstacle. In December 2020, the SEC accused Ripple Labs of illegally selling unregistered securities worth $1.3 billion. Although a 2023 court ruling determined that XRP is not a security in secondary transactions, a final decision is still pending, which deters large-scale investors.
 

XRP’s strengths for investors:

• XRP consistently ranks among the top ten assets by trading volume, with an average daily turnover of $2–3 billion in 2024.
• Over 300 financial organizations, including Santander and MoneyGram, collaborate with Ripple, bolstering confidence in the project.
• Low transaction fees make XRP appealing to those who value practical assets.
• Experts suggest that by 2030, the price could reach $7–10 if regulatory hurdles are overcome.

At the same time, investors should be prepared for price volatility and potential new restrictions, particularly in the U.S. market, where the regulatory landscape remains uncertain.

Conclusion

Ripple (XRP) stands out among cryptocurrencies due to its clear focus on practical financial tasks: lightning-fast transactions (3–5 seconds), minimal fees (0.00001 XRP), and partnerships with leading banks. Unlike Bitcoin, which serves as a digital equivalent of gold, or Ethereum with its smart contract ecosystem, XRP is designed to simplify and reduce the cost of international transfers.
 

For investors, XRP is attractive due to its high liquidity and real-world utility, but regulatory risks remain a critical factor requiring attention. For businesses handling cross-border payments, XRP offers an efficient and cost-effective solution, solidifying its position as a bridge between traditional finance and the digital world.