XRP is the native digital asset of the XRP Ledger. “Native” means it is part of the network itself, rather than a token created by an account on it. You can send XRP between ledger accounts without asking a company to process each transfer.
What people use XRP for
People use XRP to send value, trade for other assets and provide liquidity in markets. Some payment and settlement services also use it, although how any particular business uses XRP depends on that service. XRP is not a share in Ripple or a claim on the XRP Ledger.
You may hear the phrase Internet of Value: the idea that value could move between people and services as easily as information moves online. It is a goal for connected financial systems, not a promise that every payment already works that way. XRP is one asset used in this wider ecosystem.
XRP, Ripple and the XRP Ledger
These names are connected, but they mean different things:
- XRP is the digital asset.
- The XRP Ledger (XRPL) is the public network that records accounts and transactions.
- Ripple is a company that builds financial technology and has a history with XRP and the XRPL. It does not own or control the public ledger.
The next guide explains how the network works.
Why a wallet needs XRP
XRP has two practical jobs for anyone using the ledger. First, transactions need a small XRP network fee. The fee is destroyed by the protocol rather than paid to a validator or wallet company. It can rise when the network is busy.
Second, an account must keep a minimum XRP reserve. Some ledger objects, such as a trustline for holding $DROP, can require additional reserve. Reserved XRP is still yours, but you cannot spend it while the reserve applies. The required amounts can change, so check your wallet or XRPL.org before you plan a transfer.
Where next
Read What is the XRP Ledger? to learn how the network records transactions, then What is a drop? to understand XRP's smallest unit.