Confusion between XRP and Ripple remains one of the crypto market’s longest-running myths. Many investors still believe Ripple and XRP are the same entity. That misunderstanding clouds discussion around blockchain adoption, regulation, and innovation.
To understand both correctly, one must separate the token from the company that uses it. BankXRP recently explained the difference on X, providing a clear explanation that deserves deeper context.
What XRP Really Is
XRP is a digital asset designed for speed, scalability, and global liquidity. It operates on the XRP Ledger (XRPL), a decentralized and open-source blockchain launched in 2012. The ledger processes transactions in about three to five seconds with minimal fees. Anyone can build on the XRPL, use its native token, or issue other assets.
Unlike what many believe, Ripple does not own or control the XRP Ledger. It is maintained by an independent global network of validators who approve transactions through a consensus protocol. This makes XRP one of the few digital assets that can function independently of any single company.
XRP is not Ripple
As BTC is not Micro Strategy.
XRP Does not ≠ Ripple because one’s a digital asset, the other’s a company. People mix them up like they’re the same latte with different milk, but here’s the clean version:
1. XRP is the token.
It’s an independent… pic.twitter.com/qPGvhmBKbH— 𝗕𝗮𝗻𝗸XRP (@BankXRP) October 28, 2025
What Ripple Actually Is
Ripple Labs Inc. is a U.S.-based fintech company focused on real-time global payments. The firm develops enterprise-grade blockchain solutions, including RippleNet and Ripple Payments, to improve cross-border transactions. Some of these products use XRP as a bridge currency to enhance liquidity and settlement efficiency.
Ripple also issues the RLUSD stablecoin, launched in December 2024, to provide fiat-backed liquidity within its ecosystem. However, Ripple can operate its payment systems without directly relying on XRP. This flexibility demonstrates that XRP and Ripple are separate entities with distinct roles.
Why People Confuse XRP with Ripple
The confusion began because Ripple owned a large portion of XRP’s total supply. The company locked much of it in escrow accounts to control market impact. Over the years, Ripple sold XRP to fund its operations and partnerships. This connection led the public to assume Ripple created and fully controlled the token.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
The misunderstanding deepened during the SEC lawsuit, which accused Ripple of selling XRP as an unregistered security. The case prompted many to examine the distinction between the two. Legal outcomes eventually confirmed that XRP, when sold on secondary markets, is not a security.
Why This Difference Matters
Understanding this distinction helps investors, journalists, and regulators make informed decisions. XRP’s price, adoption, and liquidity depend on global usage of the XRPL, not Ripple’s corporate activities.
Ripple’s partnerships, acquisitions, and product launches affect its business but not the ledger’s core functionality.
In essence, XRP powers a decentralized ledger, while Ripple builds enterprise tools that sometimes use it. Mixing them overlooks the complex way blockchain ecosystems develop.
The Clear Takeaway
XRP, as a digital asset, is decentralized and open to everyone. Ripple is a company focused on advancing payment solutions using blockchain technology. BankXRP’s post captures this distinction perfectly, reminding the crypto community that clarity matters.
Understanding the separation between the two ensures better reporting, smarter investment decisions, and a more accurate view of blockchain innovation.