°Ripple Labs is a U.S.-based fintech company that uses blockchain technology to make international payments faster, cheaper, and more transparent.

°Through the RippleNet network, banks can transfer money worldwide within seconds using XRP as a bridge currency.

°XRP is Ripple’s cryptocurrency, but it runs on an independent network (XRPL) and is technically separate from Ripple Labs.

°Ripple works with banks instead of replacing them, positioning itself as a bridge between traditional finance and crypto.

°The long-running SEC lawsuit concluded in 2025, ruling that XRP is not a security when traded on exchanges, marking a partial victory for Ripple.

📍How does RippleNet work?

RippleNet is Ripple Labs’ system that connects networks of financial institutions across the globe. Its goal is to make international payments easier, without the delays and high costs associated with the traditional SWIFT system. Ripple Labs uses a technology called On-Demand Liquidity (ODL), which temporarily uses XRP as a bridge currency between two national currencies.

Example:

If a bank wants to send euros to Mexico, RippleNet converts the euros into XRP. It then sends them via the blockchain and converts them back into pesos in Mexico. This entire process happens within seconds. With RippleNet, banks no longer need to hold large sums in foreign accounts, freeing up more liquidity and reducing costs.

📍What is the difference between Ripple and XRP?

Although the terms Ripple and XRP are often used interchangeably, they are distinct. Ripple (Labs) is the company that develops and maintains the technology, while XRP is the cryptocurrency used within Ripple Labs’ network.

The XRP Ledger (XRPL) is the independent network that runs the XRP cryptocurrency. Instead of Proof-of-Work or Proof-of-Stake, XRPL uses its own consensus mechanism, enabling fast and energy-efficient transactions. In other words, anyone can use or trade XRP without being directly involved with Ripple Labs. However, Ripple Labs still owns a large portion of XRP tokens, which influences the perception of centralization.