- Ripple has clarified that XRP is a utility token on the decentralized XRP Ledger and does not represent ownership in the company.
- While Ripple uses XRP in its payment solutions, it does not control the ledger, which remains open and independent.
A senior Ripple executive has clarified a widespread misconception in the crypto community: XRP is not Ripple. The statement confirms that XRP is an independent digital token and does not represent ownership in Ripple Inc.
XRP Is a Utility Token on a Decentralized Network
XRP is the native cryptocurrency of the XRP Ledger (XRPL). This blockchain is decentralized, open-source, and built for speed and affordability. It supports over 1,500 transactions per second and finalizes them in three to five seconds. Transaction costs remain extremely low, averaging around $0.0002.
Despite using XRP in its financial products, Ripple does not control the XRP Ledger. The blockchain operates independently, and anyone can access or build on it. This decentralized design ensures that no single company can dominate or restrict the network.
Ripple Builds Tools — It Doesn’t Own XRP
Ripple is a private fintech company that develops payment solutions for global financial institutions. It uses blockchain technology to enable fast and low-cost cross-border payments. Some of Ripple’s products incorporate XRP, but that does not imply control or ownership of the asset.
According to Ripple executive Reece Merrick, many investors wrongly assume that buying XRP gives them a stake in Ripple’s business. However, XRP is not a stock or equity share. It functions purely as a utility token on the XRPL network.
This misunderstanding has caused confusion, especially among new investors in the cryptocurrency space. By clarifying the difference, Ripple aims to promote transparency and prevent future misinterpretations.
XRPL’s Strength Lies in Its Independence
The XRP Ledger is built to remain free from corporate control. Developers can modify, extend, or use the network without relying on Ripple. Its open and decentralized nature supports innovation and encourages global adoption.
Ripple’s involvement is focused solely on improving its products. It does not govern XRPL operations or influence the direction of the blockchain.
Ripple’s recent statement helps draw a clear line between the company and the XRP token. This clarification is essential as blockchain projects grow and face more regulatory attention.
Understanding XRP as a decentralized utility token, rather than a share in Ripple, is vital for investors and users alike. As blockchain adoption continues, accurate knowledge will drive better decision-making across the ecosystem.
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