Ripple Exec Drops Truth Bomb: XRP Isn’t What You Think It Is

In a market drowning in crypto confusion, a Ripple heavyweight just drew a line in the sand. XRP’s identity crisis? Consider it solved.

For years, investors lumped XRP into the same bucket as Bitcoin and Ethereum. But here’s the kicker—it was never meant to be a speculative plaything for moonboys. Ripple’s brass finally cut through the noise, spelling out XRP’s real role: a bridge currency for institutional settlements. No miners, no proof-of-work—just frictionless value movement.

Wall Street’s still scratching its head, of course. When you’ve spent decades overcomplicating money, simplicity feels like a threat.

TLDR

• Ripple executive Reece Merrick clarified that Ripple and XRP are not the same.
• XRP is a digital currency used on the XRPL and not a share of Ripple.
• Ripple builds financial products that use the XRPL but does not control the blockchain.
• The XRP Ledger is an open-source network that processes over 1,500 transactions per second.
• Transactions on the XRP Ledger are completed in three to five seconds and cost about $0.0002 each.

A recent post by senior Ripple executive Reece Merrick has addressed ongoing confusion about the difference between Ripple and XRP. The post has triggered new discussions across the crypto sector and among users of blockchain-based systems. The message clarified the distinctions between the company, its products, and the XRP digital asset.

XRP Is Not a Share in Ripple

XRP functions as the native cryptocurrency of the XRP Ledger, which is a decentralized and open-source blockchain network. It facilitates high-speed transactions and remains independent of the Ripple company’s ownership or control. While Ripple utilizes XRP within its payment tools, XRP holders do not own shares in Ripple.

The post underlined that many newcomers mistake the purchase of XRP as an investment in Ripple itself. This misunderstanding often leads to false expectations and misinformed decisions. However, XRP is simply a digital token used for transactions on the XRPL.

In my day-to-day, I often come across some widespread misconceptions.

Here's the most common one: that Ripple and XRP are the same thing.

That's incorrect, and here's why:@Ripple is a private company that develops enterprise blockchain infrastructure and crypto solutions for… pic.twitter.com/uHaTkIQl8F

— Reece Merrick (@reece_merrick) June 5, 2025

The XRPL processes transactions in three to five seconds and supports over 1,500 transactions per second. Its transaction fees remain extremely low, typically at around $0.0002. These technical advantages make Ripple suitable for use cases that require scale and efficiency.

Ripple and XRPL Operate Separately

Ripple is a private company that uses blockchain technology to build payment and custody solutions for financial services. Its products are designed to support seamless international payments and liquidity management. Although Ripple uses the XRP Ledger, it does not own or control the open-source network.

The XRPL allows anyone to access, use, or modify it without restrictions. Its decentralized nature ensures that no single party has authority over it. Ripple’s involvement is limited to product development that happens to utilize XRPL’s functionality.

The company builds its tools using the features of the ledger, but does not define how the ledger operates. CTO David Schwartz has emphasized that the XRPL supports a range of capabilities beyond XRP transfers. This reinforces the idea that Ripple and XRPL serve different functions despite their association.