Ripple is a blockchain-based payment settlement system and currency exchange network designed to facilitate quick and cost-efficient cross-border transactions. Its native cryptocurrency, XRP, serves as a bridge currency enabling real-time value transfers across different currencies and networks. Unlike Bitcoin and other cryptocurrencies, XRP was pre-mined at launch, with 100 billion tokens created and distributed between the company, founders, and other parties involved.
Ripple's key offering, RippleNet, is a global payments network utilized by banks, payment providers, and financial institutions to facilitate near-instant international money transfers with minimal fees. The network leverages the XRP Ledger, a decentralized and cryptographically secure blockchain that processes transactions using a consensus protocol called the Ripple Protocol Consensus Algorithm (RPCA). This allows for transaction confirmations within a matter of seconds, unlike Bitcoin's proof-of-work system which can take minutes or hours.
As of September 2023, Ripple acquired crypto infrastructure startup Fortress Trust, obtaining a Nevada trust license to expand its offerings beyond cross-border payments. In April 2024, Ripple plans to launch a US dollar-backed stablecoin, entering the USD 150 billion stablecoin market dominated by Tether and Circle's USDC. The company also aims to increase its presence in the US market, with plans to offer regulated services for fiat and crypto following the acquisition.
Key customers and partnerships
In July 2023, Bank of America acknowledged Ripple's impact on real-time cross-border payments, particularly in the Asia Pacific region. Ripple has also partnered with companies like Modulr, Nium, and SBI Remit for its payment solutions.
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