What Is XRP? Australia 2026 Crypto Guide

What XRP actually is

XRP is a digital asset that lives on the XRP Ledger, a public blockchain that anyone can read, use or build on. Like Bitcoin or Ether, it can be held in a wallet, sent to another address and traded on exchanges. Unlike them, it was designed from the start with payments and currency conversion in mind rather than as a general-purpose computing platform or a mined store of value.

On the ledger itself, XRP has three practical jobs. It pays the small fee that every transaction costs, which helps stop spam. It meets a minimum balance, called a reserve, that each account must hold to exist on the ledger. And it can act as a bridge asset, sitting briefly between two other currencies or tokens when value is converted from one to the other.

XRP is one of the larger altcoins by market value and is widely listed on Australian exchanges. Our XRP price page shows live market data in Australian dollars; this guide sticks to what XRP is and how it works.

XRP vs Ripple vs the XRP Ledger

Three names get mixed up constantly, including on some price sites.

The XRP Ledger (XRPL). The open-source blockchain. Its code is public, it is run by independent servers around the world, and changes to its rules are adopted through a voting process among validators. No single company can unilaterally change it.

XRP. The native coin of that ledger, in the same way that Ether is the native coin of Ethereum.

Ripple. A private US-based technology company, originally called OpenCoin and later Ripple Labs. It builds payment and custody products for banks and businesses, some of which use XRP and the XRP Ledger, and it issues its own stablecoin. Ripple received a large share of the XRP created at launch and remains one of the biggest holders.

The relationship matters because headlines about Ripple — a lawsuit, a partnership, a product launch — are often treated as if they were about the ledger or the coin. They are linked, but they are not the same thing. The ledger can keep running regardless of what happens to any one company, while the company’s actions can still affect how people value the coin.

How the XRP Ledger works

No mining. Bitcoin secures its network through proof-of-work, where miners spend electricity competing to add blocks. The XRP Ledger does not use mining or staking rewards. Instead it uses its own consensus protocol.

Consensus among validators. Servers called validators propose and vote on which transactions to include next. Each server chooses a list of validators it trusts not to collude, often called a Unique Node List. When a large supermajority agrees, a new version of the ledger is closed and becomes final. This usually takes a few seconds.

Accounts, not coins in a wallet. As with other blockchains, your XRP is recorded on the ledger and a wallet holds the keys that control it. Our crypto wallet explainer covers how keys and addresses work, and the cold wallet guide explains offline storage.

Built-in features. The XRP Ledger has a built-in decentralised exchange where tokens and currencies can be traded directly on the ledger, plus features such as escrow, payment channels and issued tokens. It supports a more limited form of programmability than Ethereum-style smart contracts, though its developers have been adding more over time.

Destination tags. Many exchanges use a single XRP address for many customers and tell them apart with a number called a destination tag. Sending XRP to an exchange without the right tag is a common, avoidable mistake.

XRP supply, escrow and fees

Fixed at creation. All 100 billion XRP were created when the ledger launched in 2012. No new XRP can be created under the current rules, and there is no block reward.

Burned fees. Each transaction destroys a very small amount of XRP as its fee rather than paying it to anyone. Over time this slowly reduces the total amount in existence.

Ripple’s holdings and escrow. The founders gave a large share of the original XRP to the company. In 2017 Ripple locked a large portion of its holdings into on-ledger escrow contracts that release XRP on a monthly schedule, partly to reassure the market about how much could be sold at once. Unused XRP has typically been returned to new escrow. Ripple’s sales and holdings remain one of the most discussed parts of XRP’s market.

For live figures on circulating supply and market capitalisation, use a reputable data source or our XRP price page. Figures change constantly and vary between data providers, so this guide does not quote them.

What XRP is used for

Cross-border payments. This is the use most associated with XRP. Sending money internationally through traditional banking can involve several intermediaries and pre-funded accounts in each currency. Ripple has promoted a model where a business converts currency A into XRP, sends it across the ledger in seconds, and converts it into currency B at the other end, so it does not need money sitting idle in foreign accounts. How widely this is used in practice is debated, and many of Ripple’s banking partnerships use its messaging software without using XRP at all.

A bridge for tokens. On the ledger’s built-in exchange, XRP can sit between two less-traded assets to make conversion easier.

Tokens and stablecoins. Businesses and projects can issue tokens on the XRP Ledger, including stablecoins. Ripple’s own US dollar stablecoin, RLUSD, launched in December 2024 on the XRP Ledger and Ethereum.

Trading and speculation. In practice, a large share of XRP activity is trading on exchanges. That is true of most crypto assets and is worth keeping in mind when reading claims about real-world use.

XRP vs Bitcoin: the key differences

Purpose. Bitcoin was designed as peer-to-peer electronic cash and is now mostly discussed as a scarce store of value. XRP was designed around payments, settlement and currency conversion.

Security model. Bitcoin uses proof-of-work mining. The XRP Ledger uses validator consensus without mining, which uses far less energy but relies on trusted validator lists.

Supply. Bitcoin’s supply is capped at 21 million and released gradually to miners, with issuance halving roughly every four years. XRP’s 100 billion were all created at launch, with a large share held by one company.

Speed and cost. XRP transactions usually settle in seconds with very small fees. Bitcoin’s base layer takes longer to reach the same confidence and fees vary with demand.

Decentralisation debates. Bitcoin has no company behind it and its founder is anonymous. XRP grew up alongside a single company that still holds a large share of supply, which critics see as a centralisation concern and supporters see as useful backing. Seen through bitcoin dominance, XRP is one of many coins competing for a share of total crypto market value.

A short history of XRP

2012: launch. Developers David Schwartz, Jed McCaleb and Arthur Britto launched the XRP Ledger, and the company that became Ripple was formed around it. The idea built on an earlier payment system concept called Ripplepay.

2013–2017: Ripple grows. The company rebranded from OpenCoin to Ripple Labs and later Ripple, and signed partnerships with banks and payment firms. In 2017 it placed a large share of its XRP into escrow.

2017–2018: the first big boom. XRP rose sharply during the late-2017 crypto boom, then fell heavily in the 2018 bear market along with most of the market. Our bull market guide describes that cycle.

2020–2025: the SEC case. The US regulator’s lawsuit, covered below, dominated XRP news for several years. Several US exchanges paused XRP trading after the case was filed and later relisted it.

2024 onwards. Ripple launched its RLUSD stablecoin and continued to build on the ledger, while the ledger’s community kept adding features through its amendment voting process.

The SEC case, at a factual level

In December 2020 the US Securities and Exchange Commission sued Ripple and two of its executives. The SEC alleged that Ripple had raised money by selling XRP as an unregistered security. Ripple argued that XRP was a currency, not an investment contract.

In July 2023 Judge Analisa Torres of the US District Court for the Southern District of New York gave a split ruling. Ripple’s direct sales of XRP to institutional buyers were found to be investment contracts, and so securities offerings. Its programmatic sales on public exchanges, where buyers did not know they were buying from Ripple, were found not to be. Claims against the two executives were later dropped.

In 2024 the court ordered Ripple to pay a civil penalty of about US$125 million, far less than the SEC had sought. Both sides appealed, and in 2025 they moved to end their appeals, bringing the case to a close.

Three points help put it in context. The ruling was about specific sales under US securities law, not a global verdict on what XRP is. It did not decide how any Australian regulator would treat XRP. And it showed how much a single legal case can move the price and availability of a coin, which is a risk worth understanding for any crypto asset.

Risks and criticisms

This is general information about risks commonly discussed with XRP. It is not a recommendation.

Volatility. XRP’s price has swung sharply in both directions, like most crypto. ASIC’s Moneysmart says unbacked crypto is only worth what people are willing to pay.

Concentration. A large share of XRP has been held by Ripple and early insiders. Their sales, and the escrow schedule, are watched closely by the market.

Adoption claims. Partnerships announced by Ripple do not always mean XRP itself is being used. Read past headlines to what is actually being done.

Regulatory change. The SEC case showed how quickly legal decisions can affect listings and prices. Rules continue to change in the US, Australia and elsewhere.

Scams. XRP has a large, active online community, and scammers use it. Common lures include fake “XRP giveaways” using doctored videos of Ripple executives, fake airdrops and impersonated support accounts. No genuine giveaway asks you to send XRP first. See our crypto scams guide.

Transfer mistakes. Missing destination tags and sending to the wrong network can delay or lose funds. Test with a small amount first.

The Australian angle

Most XRP explainers are written by Ripple, by exchanges or for US readers. Four Australian details are worth separating out.

Where Australians get XRP. XRP is commonly available on Australian exchanges registered with AUSTRAC. Registration is about anti-money-laundering rules; it does not mean a regulator has approved XRP or the exchange’s other products. Our crypto exchange guide explains how exchanges work here, and the buy XRP in Australia page covers the practical steps.

Prices in AUD. XRP is usually quoted in US dollars, but Australians buy and sell in Australian dollars. Because AUD/USD moves too, a US headline’s price or percentage change may not match your AUD experience.

Tax. The ATO treats XRP like other crypto assets. Selling it, swapping it for another coin or spending it is generally a CGT event; moving it between your own wallets generally is not. If you held it for at least 12 months as an individual, you may be eligible for the 50 percent CGT discount. Keep records of every transaction in AUD. Check ATO guidance or a registered tax agent; students can see our crypto tax guide for Australian students.

Where to check before you act. ASIC’s Moneysmart crypto assets page explains crypto’s risks in plain English. Scamwatch, run by the ACCC, says Australians lose more money to investment scams than any other type, and that crypto lost to scams is rarely recovered.

Eagle BTM Pty Ltd ACN 659 281 820 publishes this education site and is an AUSTRAC-registered DCE/VASP. AUSTRAC registration is not an Australian financial services licence, and nothing here is a recommendation to buy, sell or hold any asset. Jittie is in pre-launch. Join the waitlist for launch updates.

Frequently Asked Questions

What is XRP in simple terms?

XRP is a cryptocurrency that runs on the XRP Ledger, a public blockchain launched in 2012. It is used to pay small network fees and to move value quickly between people and between currencies. It is often linked to the company Ripple, which uses XRP in some of its products and holds a large amount of it, but XRP and the ledger are separate from the company.

Is XRP the same as Ripple?

No. Ripple is a private technology company. XRP is the native coin of the XRP Ledger, an open-source blockchain that anyone can use and that runs on independent validators. People often call XRP “Ripple” because the company and the coin grew up together, and some price sites still list XRP under that name.

What does XRP actually do?

On the XRP Ledger, XRP pays transaction fees, meets a small reserve needed to open an account, and can act as a bridge between other currencies or tokens. Ripple has promoted XRP for cross-border payments, where it can be used briefly as a go-between when converting one currency to another.

How is XRP different from Bitcoin?

Bitcoin uses proof-of-work mining and new coins are issued over time to miners. The XRP Ledger uses a consensus process among validators with no mining, and all XRP were created at launch. XRP transactions usually settle in seconds with very low fees. Bitcoin is mostly discussed as a scarce store of value; XRP is mostly discussed as a payments and settlement asset.

Is XRP mined?

No. All 100 billion XRP were created when the ledger launched in 2012. There is no mining and no block reward. A tiny amount of XRP is destroyed as a fee with every transaction, so the total amount in existence slowly falls rather than rises.

What was the SEC case against Ripple about?

In December 2020 the US Securities and Exchange Commission sued Ripple and two executives, alleging that sales of XRP were unregistered securities offerings. In July 2023 a US District Court judge ruled that Ripple’s direct sales to institutional buyers were investment contracts, but that its programmatic sales on exchanges were not. Ripple was later ordered to pay a civil penalty, and in 2025 both sides moved to end their appeals. The case was about US securities law, not Australian law.

Is XRP a good investment?

This education page does not answer that, because it depends on your situation and no one can reliably predict crypto prices. XRP has been highly volatile, like most crypto. ASIC’s Moneysmart says to only invest what you are prepared to lose and to understand crypto’s risks before buying any of it.

Where is XRP stored?

XRP is recorded on the XRP Ledger. To control it yourself you need a wallet that supports the XRP Ledger; many exchanges also hold it for customers. Some exchanges and wallets require a destination tag when you send XRP to them, and leaving it out can delay or lose a transfer. Always check the receiving platform’s instructions first.

Is XRP taxed in Australia?

Generally yes, in the same way as other crypto. Selling XRP, swapping it for another coin or spending it is generally a CGT event. Moving it between your own wallets is generally not. If you held it for at least 12 months as an individual, you may be eligible for the CGT discount. Check the ATO or a registered tax agent for your own situation.

What is RLUSD?

RLUSD is a US dollar stablecoin issued by Ripple, launched in December 2024 on the XRP Ledger and Ethereum. It is a separate token from XRP and is designed to track the US dollar rather than move freely in price. Like any stablecoin, its stability depends on the issuer’s reserves and the rules it operates under.