BASICS / 01 OF 08
What is XRP?
XRP is the native digital asset of the XRP Ledger. The asset, the network and the company Ripple are different things.
Three things to know
- XRP pays the ledger’s transaction cost and supports account reserve requirements.
- It can move directly between ledger accounts without being a claim on a token issuer.
- A price quote describes a market observation, not a promised return.
A practical example
Think of a railway and its freight: the infrastructure and the thing moving through it are distinct. This analogy does not describe who owns or controls the network.
Technical detail
XRP amounts use drops: one XRP equals one million drops. Transaction costs are destroyed rather than paid to a validator. Account reserves are a separate requirement; check current network settings rather than assuming a permanent fee or reserve amount.
Common misunderstanding
Holding XRP does not give you shares in Ripple or a right to the company’s profits.
Check the original sources
Editorial review: October 28, 2026. Source content and network rules can change.
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