RippleNet is a global financial network populated by hundreds of FinTech organizations. This blockchain-based technology allows businesses to streamline global operations and connect with scores of financial institutions. This network is active across 55 countries and 120 currency pairs. The digital asset used on RippleNet is known as Ripple, a.k.a. XRP. It functions as a virtual token operating through the on-demand liquidity service. Whereas many cryptocurrencies serve the needs of individuals transferring value from one party to the next, Ripple is specifically geared towards the financial services industry.
In recent years, Ripple has encountered many legal wrangles with the Securities and Exchange Commission (SEC). This regulatory authority accused Ripple Labs of selling digital tokens without registering them as digital tokens. Ripple Labs has countered that XRP is a medium of exchange, not a security. This cryptocurrency acts as a credible agent between parties to a transaction. A variety of transactions can be facilitated through Ripple, including commodities, crypto, and fiduciary currencies. There are 35 trusted validators on the XRP Ripple network. 6 validation nodes are comprised of Ripple validators, and the rest are decided by Ripple itself.
Ripple transactions settle rapidly, and there are low fees associated with this network. At prevailing rates, it costs just 0.0001 XRP to process a transaction on the Ripple network. Many of the world’s premier banking institutions and financial companies use RippleNet, including Santander, American Express, Bank of America, Banco Redimento, SCB, Axis Bank, and NIUM. That a large and growing number of institutional banking giants uses Ripple adds to its credibility. The official SEC position on Ripple (2020 – 338) was summed up with the following headline, ‘SEC charges Ripple and two executives with conducting $1.3 billion unregistered securities offering.’
In the United States, Ripple has proven to be somewhat problematic in recent years. The SEC lawsuit has hampered Ripple’s ability to attract traders and investors. However, outside of the US Ripple fares much better. This cryptocurrency is designed for enterprise-level use on the Ripple payment network. At the time of writing (January 2022) Ripple was trading at approximately $0.76, with a market capitalization of $36.1 billion. The maximum supply of XRP is capped at 100 billion tokens, with a circulating supply currently at 47.58 billion XRP (48% of the total). If the SEC lawsuit ends favorably for Ripple, the XRP-USD pair will likely spike to reflect increased optimism.