XRP (XRP)

Cross-Border Payments

XRP is mainly used to make international money transfers faster and cheaper. It acts as a bridge currency, helping banks and payment providers send money across countries quickly without needing to hold multiple currencies.

Liquidity Management

Banks use XRP to manage liquidity better. It helps reduce the amount of money they need to keep idle in different currencies, making their capital use more efficient.

Remittances

XRP is used for sending remittances, which means people can send money to family or friends in other countries with lower fees and faster delivery times.

Micropayments and Smart Contracts

XRP can be used for small payments and supports smart contracts, which are self-executing agreements that can automate transactions and other processes.

Financial Inclusion

XRP aims to provide faster and affordable payment services, helping people and businesses who may not have easy access to traditional banking systems.

Pros of XRP

• Speed and Scalability: XRP transactions settle in 3-5 seconds and can handle up to 1,500 transactions per second, making it very fast and efficient.
• Low Transaction Costs: Transaction fees are typically less than a cent, which is cheaper than many other cryptocurrencies.
• Strong Partnerships: XRP has partnerships with many financial institutions, helping it gain adoption in the banking and payment sectors.
• Regulatory Clarity: Compared to some cryptocurrencies, XRP has received clearer regulatory guidance in various countries.
• Wide Use Case: Designed mainly for fast, low-cost international payments and cross-border transfers.

Cons of XRP

• Centralization Concerns: XRP is controlled by Ripple, and its network relies on a limited number of trusted validators, which some see as less decentralized than other cryptocurrencies.
• Competition: Faces strong competition from Bitcoin, Ethereum, and other altcoins, which may affect its long-term growth.
• Regulatory Issues: XRP has faced legal challenges, such as the lawsuit by the U.S. SEC, which can impact its market perception.
• Price Volatility: Like most cryptocurrencies, XRP’s price can be unpredictable and influenced by market sentiment and regulatory news.

Founders of XRP

• Jed McCaleb: An early Bitcoin pioneer and co-founder of Ripple, he helped create the XRP Ledger and was the original CTO of Ripple (formerly OpenCoin). He previously founded the Mt. Gox exchange.
• Chris Larsen: Co-founder and former CEO of Ripple Labs, the company behind XRP. He played a key role in the business and strategic development of XRP.
• David Schwartz: Chief Cryptography Officer and one of the key developers behind the XRP Ledger technology.
• Arthur Britto: An early advisor and developer who contributed to the creation of the XRP Ledger.

These founders worked together to build XRP as a fast, scalable digital asset designed for cross-border payments.

Institutional Investors

About 20% of institutional investors hold XRP, according to a report by Ernst & Young. These include banks and financial institutions that partner with Ripple to improve global payment systems.

Private and Retail Investors

Millions of individual investors worldwide own XRP. Some hold XRP in personal wallets, while others keep it on exchanges. Large holders, often called "whales," include exchanges and crypto firms managing XRP for many users.

Major Holders

The top XRP holders include Ripple Labs, its CEO Brad Garlinghouse, and several large wallets controlling a significant portion of the total supply. Exchanges also hold large amounts on behalf of their customers.

Partnerships and Strategic Investors

Ripple has attracted investments and partnerships from major banks and companies like Standard Chartered, American Express, and Santander, which support XRP’s use in cross-border payments.

Halal Status of XRP

• Yes, XRP is generally considered halal by many Islamic scholars and Shariah advisory firms.
• It is seen as halal because it facilitates transparent, interest-free cross-border payments and serves as a bridge currency for financial institutions.
• XRP’s utility in improving payment infrastructure aligns with Islamic finance principles, avoiding involvement in interest (riba) or prohibited industries.
• Several Islamic finance experts and platforms, such as Sharlife and Practical Islamic Finance, have screened XRP and found it compliant with Shariah guidelines.