# Ripple Definition

![Ripple CEP Brad Garlinghouse](https://www.investopedia.com/thmb/yLQRhE9f1NdlUkM9JbB3XoExCwo=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1677495337-432e66bae20b4aaeae6d8def92ef2469.jpg)

*Ripple CEP Brad Garlinghouse. — Bloomberg / Getty Images*

Ripple is a blockchain-based digital payment company that has created a network and protocol that uses the [cryptocurrency](https://www.investopedia.com/terms/c/cryptocurrency.asp) XRP and the XRP Ledger. Ripple's main focus is as a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers used by banks and financial intermediaries dealing across currencies.  

Ripple's products serve as a sort of temporary global settlement layer for businesses and individuals.

### Key Takeaways

*   Ripple is a blockchain-based digital payment network and protocol that uses the XRP Ledger blockchain and XRP.
*   Ripple makes money by providing cross-border payment and crypto liquidity services to businesses.
*   One of the first of its kind, Ripple operates in the blockchain and cryptocurrency financial services industry.
*   In January 2025, Ripple received approval for and released its stablecoin backed by U.S. dollars, RLUSD.

## Ripple's Industry

Ripple operates in the financial technology industry, providing blockchain and cryptocurrency cross-border payment, crypto liquidity, and central bank digital currency services. Its platforms use the XRP Ledger and its native token, [XRP](https://www.investopedia.com/what-is-xrp-6362550), in its services.

Ripple is unique in this industry as it created the first financial services platform and network that accesses and uses blockchain and cryptocurrency for enterprises. It has developed products that provide liquidity and uses cryptocurrency and a bridge currency to speed up international transactions and reduce costs.

Additionally, Ripple has helped countries create their own [central bank digital currencies (CBDCs)](https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp) through its Ripple CBDC platform.

## Ripple's Fundraising and Financials

Since 2012, Ripple has had 14 fund-raising rounds, raising a total of $293.8 million. The most recent backers include Uday Kumar Bangalore Shivaraman, The K Fund, and Azure Ventures Group.

The company's most recent valuation was over $11 billion, which includes a rumored $285 million stock repurchase in 2024.  

## History and Leadership

Ripple was founded in 2012 by Chris Larsen, David Schwartz, Author Britto, and Jed McCaleb after work began on the XRP Ledger. The company's original name was OpenCoin, but it quickly went through a series of name changes until finally becoming Ripple.

Founders:

*   **Chris Larsen**: Has a long history of success in financial technology endeavors.
*   **David Schwartz**: A multi-discipline engineer with a long track record in developing software solutions.
*   **Jed McCaleb**: Has been involved in software development and cryptocurrency since the early 2000s.
*   **Arthur Britto**: A software engineer with a long history of programming.

Ripple's current leadership is:  

*   **Chief Executive Officer**: Brad Garlinghouse
*   **Chief Technical Officer**: David Schwartz
*   **President**: Monica Long
*   **Chief Financial Officer**: Jon Bilich

## Recent Developments

Ripple has been expanding its capabilities by acquiring companies involved in cryptocurrency and technology that complements it. In 2024 and 2023, it acquired Standard Custody & Trust and Metaco, crypto custody services providers. These acquisitions will likely help Ripple with its plans to offer crypto liquidity services to institutions in addition to institutional decentralized finance solutions.

In 2020, [Ripple was sued](https://www.investopedia.com/sec-vs-ripple-6743752) by the Securities and Exchange Commission. The Commission alleged the business had sold unregistered securities in its fundraising activities.

In 2023, Judge Analisa Torres decided that XRP was not a security when sold on exchanges but was a security when sold to institutional investors. The SEC dropped all charges against Chris Larsen and Brad Garlinghouse but continued to insist on fining Ripple nearly $2 billion, which Ripple contested.

In August 2024, Ripple was ordered to pay the SEC $125 million in fines, and the case was finalized.

Ripple also introduced its stablecoin in 2024, backed by cash and cash equivalents. The stablecoin was approved by the New York Department of Financial Services in January 2025, and the company has partnered with major centralized and decentralized cryptocurrency exchanges.

## Does Ripple Have a Future?

Ripple has positioned itself as a company that can help businesses access blockchain and cryptocurrency for payment services without building and maintaining a blockchain or using a public blockchain and crypto. With this in mind, the company's future depends on demand for its products and services.

## How to Buy Ripple Stablecoin?

Ripple's stablecoin (RLUSD) was approved by the New York Department of Financial Services in January 2025 and is available for purchase on major global exchanges, Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, Sologenic, and Bullish.

## Will RLUSD Use XRP?

RLUSD is a different type of virtual asset, so it won't use XRP. It is supposed to be fully backed by cash and cash equivalents at a ratio of 1:1.

## The Bottom Line

Ripple is a blockchain services and tech company that provides financial services for companies worldwide. It was started by some of the same developers who created XRP and the XRP Ledger. Ripple uses the XRP ledger to develop its products and services, but it does not own, maintain, or develop the ledger or cryptocurrency.

Ripple is the first business to incorporate blockchain and cryptocurrency into a global enterprise financial network. It operates in a new industry, so there have been many speed bumps, such as regulatory concerns and lawsuits.  

_The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. Read our [warranty and liability disclaimer](https://www.investopedia.com/legal-4768893#toc-warranty-and-liability-disclaimer) for more info._

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