XRP is the native cryptocurrency of the XRP ledger—a blockchain optimized for payments. According to Ripple, the company that created XRP, the blockchain can process 1,500 transactions per second.
Ripple is a major contributor to the XRP ledger, and says that it runs six of the 36 validator nodes on the network.
In December 2020, the Securities and Exchange Commission sued Ripple and two of its executives for selling unregistered securities. The SEC’s lawsuit, which is ongoing, alleges that the company and its executives raised $1.3 billion through the sale of XRP to fund Ripple’s operations. Ripple denies the allegations.
Of the 100 billion total supply of XRP, 47% trades on the open market, while Ripple holds the rest, illustrating the substantial sway the company holds over the coin.
In January 2020, Coinbase, the largest cryptocurrency exchange in the U.S., suspended trading on XRP, citing the SEC’s action against Ripple.