If you live in New York and planned on investing in Ripple, you may have been shocked when, in September 2023, the XRP coin was removed from the greenlist of cryptocurrencies.
But how did the delisting of XRP impact Ripple vs. XRP? Simple: when XRP was removed from NY’s greenlisted coins, Ripple, the company, still retained its BitLicense. (1)
If you’re confused, it’s not your fault. We’ll do our best to put an end to the most popular misconceptions between the two.
In brief, XRP is a cryptocurrency, Ripple (Ripple Markets DE LLC) is the company who holds a NY state BitLicense.
If you’ve got more questions, here are some quick answers to the most common questions about Ripple vs. XRP as well as RippleNet and now Ripple Payments. By the end, you’ll no longer be confused and I bet you’ll even be able to explain the differences to others.
Ripple vs. XRP FAQ’s
Is Ripple XRP?
Ripple is not XRP…keep reading
XRP and Ripple Difference:
Ripple is the company, and XRP is the cryptocurrency used in the Ripple ecosystem. It’s Ripple that offers the ability for people to access financial information on the network, while XRP is a cryptocurrency that is used on the network.
Is Ripple a Cryptocurrency?
No, Ripple is a fintech company that uses their own cryptocurrency and that currency is called XRP. “Fintech” is simply a combination of: Financial + Technology. So in Ripple’s case, the Financial part is cryptocurrency and the technology is blockchain.
Why is XRP listed as Ripple on Some Exchanges?
Even though some crypto exchanges list Ripple alongside XRP, if you placed a trade, you would only be buying XRP. Exchanges may list both in an effort to ensure the end-user that it’s the XRP connected with the company Ripple, and not some other token or offer.
Did Ripple Create XRP?
What came first, the Ripple or the Egg? XRP? You might be surprised to learn that XRP came first, but not by much (2). XRP was launched in June of 2012 and just a few short months later, it’s creators, along with Chris Larsen started a company called “NewCoin” which would later become Ripple.
So…no. Ripple didn’t even exist before XRP and therefore, did not create XRP.
Ripple vs. RippleNet vs. Ripple Payments vs. XRP:
Ripple, the company, oversees both RippleNet and XRP and they each have different functions and purposes. RippleNet is the network where all the magic happens, while XRP is a cryptocurrency used within the RippleNet.
Within RippleNet, XRP is often used as an optional bridge currency for facilitating financial transaction between different different types of fiat.
Where does that leave Ripple Payments? – In November 2023, Ripple rebranded RippleNet, and the network is now called Ripple Payments.
Why are People Confused about Ripple, RippleNet, and XRP?
People might be confused about XRP and Ripple for a few reasons…all completely valid:
Ripple Name History and Associations
XRP II LLC was a wholly-owned subsidiary of Ripple, it’s been known as XRP II LLC, and XRP Fund II, LLC. Here is a snapshot of Ripple listed in New York state’s Virtual Currency Database. Notice the FKA.
Often Advertised Interchangeably
The names “XRP” and “Ripple” are often used interchangeably, leading to confusion. Oftentimes I’ve seen articles and media coverage where the two are listed in close association such as: Ripple (XRP).
This contributes to the misconception that Ripple and XRP are one in the same.
Is Ripple or XRP Publicly Traded?
Ripple Labs, the company behind the cryptocurrency XRP, is a private company. That means (at the time of this writing) you won’t find Ripple Labs trading on public stock exchanges.
XRP, the digital currency is publicly traded which means you can buy it, even on some approved NY Exchanges. If you want to invest in Ripple Labs, acquiring XRP is one way you can do that.
In Summary
While XRP and Ripple are closely associated and share some roots, they are two separate things with completely different purposes.
XRP and Ripple are most similar in that: Ripple oversees XRP, holds the vast majority, and uses XRP as a digital asset within its ecosystem.
While there are similarities, it’s crucial to understand that XRP is the cryptocurrency, and Ripple is the company that uses it to facilitate financial transactions on their network.