XRP and the XRP Ledger
A payments-focused ledger whose entire supply existed from day one, set out as facts: builders, escrow, fee burn, reserves and the legal history.
On this page
- The XRP Ledger was built over 2011 to early 2012 by Jed McCaleb, Arthur Britto and David Schwartz.[1]
- All 100 billion XRP existed when the ledger was created; there is no mining.[1][4]
- Every transaction destroys a small amount of XRP, at least 0.00001 XRP for a standard transaction.[2]
- Ripple, the company, placed 55 billion XRP in escrow in 2017 and has regularly sold XRP.[1]
- In December 2020 the SEC sued Ripple and two executives, alleging an unregistered securities offering.[5]
What is XRP and who created it?
XRP is the native digital asset of the XRP Ledger, a public blockchain. According to the ledger's own documentation, Jed McCaleb, Arthur Britto and David Schwartz built it over 2011 and early 2012.[1] In September 2012, McCaleb and Britto, together with Chris Larsen, formed the company now called Ripple, then named OpenCoin Inc.[1]
The difference between the ledger and the company matters. The XRP Ledger is software run by many independent servers; Ripple is a business that received XRP and has regularly sold it.[1] The XRP trademark was registered with the US Patent and Trademark Office in 2013, and in 2022 the assignment moved to the XRP Ledger Trust.[1] For the general idea of a public ledger, read what is a blockchain.
How does the XRP Ledger reach agreement?
The XRP Ledger does not use mining or staking. Each server picks a set of trusted validators, called its Unique Node List or UNL, and the validators agree on which transactions to apply.[4] The documentation states that consensus keeps working as long as fewer than 20% of trusted validators are faulty, and that confirming an invalid transaction would need over 80% of them to collude.[4] It also notes that confirming transactions does not require competitive use of resources, unlike most other blockchains.[4]
Compare this with mining and staking in proof of work vs proof of stake. The trade-off is that safety rests on the honesty of the validators you choose to trust rather than on spent energy or locked stake.
How is XRP supply created and destroyed?
There were 100 billion XRP when the ledger was created.[1] The documents we read describe no mining or block reward; what they do describe is destruction. To protect the network from spam and denial-of-service attacks, each transaction must destroy a small amount of XRP, and that cost is not paid to anyone.[2] The minimum cost for a standard transaction is 0.00001 XRP, or 10 drops, and it rises when the network is busy.[2] By our arithmetic, that makes one XRP equal to 1,000,000 drops.
| Supply fact | Detail |
|---|---|
| Created at launch | 100 billion XRP[1] |
| Placed in escrow by Ripple, 2017 | 55 billion XRP (55% of the original amount, our calculation)[1] |
| Fee destination | Destroyed, not paid to validators[2] |
| Minimum standard fee | 0.00001 XRP (10 drops)[2] |
The escrow was set up, in the documentation's words, so the amount entering general supply grows predictably.[1] Circulating supply therefore depends partly on a company's decisions, not only on code.
What is XRP used for?
- Paying transaction costs. Every transaction on the ledger destroys a small amount of XRP as an anti-spam fee.[2]
- Meeting reserve requirements. Accounts must hold a reserve in XRP, which protects the shared ledger from growing too large through spam.[3]
- Market liquidity. The documentation says Ripple has used XRP to strengthen XRP markets and improve network liquidity.[1]
For how a transfer moves from wallet to ledger, see how crypto transactions work.
What are the key dates in XRP's history?
Dates come from the XRP Ledger documentation and, for the 2020 lawsuit, the SEC. A day-level launch date is not given in the primary sources we checked.
| Date | Event |
|---|---|
| 2011 to early 2012 | XRP Ledger built by McCaleb, Britto and Schwartz[1] |
| September 2012 | OpenCoin Inc., later Ripple, formed[1] |
| 2013 | XRP trademark registered with the USPTO[1] |
| 2017 | Ripple places 55 billion XRP in escrow[1] |
| May 2018 | Community selects the 'X' symbol for XRP[1] |
| 22 December 2020 | SEC files charges against Ripple and two executives[5] |
| 2022 | Trademark assignment moves to the XRP Ledger Trust[1] |
What are the specific risks of holding XRP?
- Legal history. On 22 December 2020 the SEC charged Ripple Labs and two executives, alleging they raised over $1.3 billion through an unregistered securities offering.[5] Those were allegations. Our sources do not cover how the case ended, so check sec.gov for its current status; see also SEC vs CFTC.
- Concentrated holdings. One company placed 55 billion XRP in escrow and has regularly sold XRP,[1] so its decisions affect how much XRP reaches the market.
- Validator trust. Consensus fails safe only while fewer than 20% of trusted validators are faulty; over 80% colluding could confirm an invalid transaction.[4]
- Changing rules. Reserve requirements change when validators agree new settings through Fee Voting.[3]
- Custody. Lost or hacked self-custody wallets can mean permanent loss; custodians can be hacked or go bankrupt.[6]
What mistakes do beginners make with XRP?
- Treating Ripple and the XRP Ledger as the same thing. The ledger was built before Ripple was formed in September 2012.[1]
- Trying to send an entire balance. Reserved XRP cannot be sent to others, although it can pay transaction fees.[3]
- Expecting fees to reward someone. The XRP paid as a transaction cost is irrevocably destroyed.[2]
- Relying on old fee or reserve figures. Fees rise with network load and reserves change by validator vote,[2][3] so check current values in a wallet or block explorer; see block explorer.
Questions readers ask
Is there a maximum supply of XRP?
The ledger began with 100 billion XRP,[1] and each transaction destroys a small amount,[2] and the documentation we read describes no process for issuing more.
Is Ripple the same as XRP?
No. Ripple is a company formed in September 2012 as OpenCoin Inc.; the XRP Ledger was built earlier by McCaleb, Britto and Schwartz.[1]
Can I spend my reserved XRP?
You cannot send reserved XRP to others, but you can use it to pay transaction fees.[3]
What is a drop?
The unit XRP fees are counted in: 10 drops equal 0.00001 XRP, the minimum standard transaction cost.[2]
XRP is unusual among large crypto assets: its whole supply existed at the start,[1] fees are burned rather than paid out,[2] and a single company holds and sells a large share through escrow.[1] Add a major SEC lawsuit to its history,[5] and the facts to weigh are as much about governance and law as about technology.
Sources
- XRPL.org documentation (XRPLF/xrpl-dev-portal), What is XRP? (XRPL documentation, source file) (2026)Primary source
- XRPL.org documentation (XRPLF/xrpl-dev-portal), Transaction Cost (XRPL documentation, source file) (2026)Primary source
- XRPL.org documentation (XRPLF/xrpl-dev-portal), Reserves (XRPL documentation, source file) (2026)Primary source
- XRPL.org documentation (XRPLF/xrpl-dev-portal), Consensus (XRPL documentation, source file) (2026)Primary source
- US Securities and Exchange Commission, SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering (2020-338) (2020)Primary source
- US Securities and Exchange Commission (Investor.gov), Crypto Asset Custody Basics for Retail Investors (2025)Primary source
Educational content only — not financial, investment, legal or tax advice. Crypto-assets are high-risk and you could lose all the money you put in. Rules differ by country; check with your national regulator. See our risk disclosure and editorial policy.
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