Ripple CEO Brad Garlinghouse has once again clarified the long-standing confusion between Ripple and XRP, addressing what many people often misunderstand about the two. Speaking in a video shared by John Squire on X, Garlinghouse discussed the key distinctions that continue to be misinterpreted within the digital asset community.

Garlinghouse explained that Ripple is a Silicon Valley-based technology company focused on developing blockchain solutions for financial institutions. The firm raised a seed round in 2012, followed by Series A and Series B investments in 2014 and 2016.

From the outset, Ripple has aimed to serve enterprise clients and build an efficient payment infrastructure for the global banking system.

According to Garlinghouse, XRP operates as an independent, open-source digital asset. It is traded globally across hundreds of exchanges and runs on the XRP Ledger, which is maintained by a diverse community of developers and participants.

Unlike Bitcoin or Ethereum, XRP uses a consensus mechanism that enhances scalability and reduces transaction time and costs, making it ideal for cross-border payments.

Garlinghouse Emphasizes the Role of XRP in Financial Innovation

In the video, Garlinghouse highlighted that Ripple is only one of several contributors to the XRP Ledger ecosystem. While Ripple builds technology that utilizes XRP, the ledger itself remains open source, allowing other developers and institutions to innovate independently.

He added that this structure supports transparency, efficiency, and interoperability across global financial systems.

Garlinghouse also addressed the persistent mix-up between Ripple and XRP, noting that many investors mistakenly say they invested in “Ripples” rather than XRP. He admitted that while such confusion can be frustrating, it also provides an opportunity to educate the public about how Ripple and XRP function separately within the broader crypto landscape.

The video also captured Garlinghouse reaffirming his vision for XRP’s real-world utility. He underscored that “global liquidity is the foundation of the future of finance,” adding that Ripple’s mission continues to focus on delivering solutions that drive genuine financial efficiency rather than speculation.

Ripple’s ongoing efforts to clarify the differences between the company, XRP, and the XRP Ledger reflect its commitment to transparency and education as it builds partnerships with financial institutions worldwide.