By Chris Hollingworth 
Ripple’s XRP (XRP), the third-largest cryptocurrency by market cap, recently garnered attention on a national scale when President Donald Trump highlighted it as a “valuable cryptocurrency” along with other major digital assets like BTC, ETH, SOL, and ADA. This recognition came as part of a proposed US strategic crypto reserve outlined in an executive order issued by Trump on March 6, establishing a new framework for these alternative coins under the management of the Treasury.
While opinions within the crypto community vary regarding XRP’s actual value, exploring the utility of this altcoin is essential. Launched in 2012 by Ripple Labs, the XRP Ledger (XRPL) was specifically crafted for interbank settlements. Initially offering three enterprise solutions—xRapid, xCurrent, and xVia—these services were later consolidated under the RippleNet umbrella. xCurrent enables real-time messaging and settlement between banks, xVia serves as a payment interface allowing financial institutions to utilize RippleNet for payments, and xRapid (now part of On-Demand Liquidity) facilitates cross-border transactions, with only ODL necessitating the use of XRP.
While major banks such as American Express, Santander, Bank of America, and UBS have adopted xCurrent and xVia, information on entities leveraging XRP-powered ODL services is somewhat limited. Notable adopters include SBI Remit, a significant Japanese remittance provider, and Tranglo, a prominent remittance company in Southeast Asia.
In addition to its role in banking, XRP also functions as a gas token, with a portion of XRP burned as an anti-spam measure, unlike Ethereum where fees go to validators. However, Ripple’s Web3 involvement is relatively modest compared to Ethereum, lacking support for complex smart contracts or decentralized applications (DApps). The XRPL Web3 ecosystem is characterized by a small DeFi sector with $80 million in total value locked, primarily consisting of DEX tokens, memes, wrapped BTC, and stablecoins.
Although Ripple advocates for equal treatment of cryptocurrencies, CEO Brad Garlinghouse emphasizes the importance of a diverse representation in any government digital asset reserve, rather than favoring one token over others. While Bitcoin is often viewed as a geopolitically neutral asset akin to gold, XRP’s purpose is less clear-cut due to its permissioned nature, which differs from the decentralized mechanisms seen in Bitcoin and Ethereum.
Critics, such as Bitcoin proponent Jameson Lopp, raise concerns about XRP’s centralized system and its reliance on a Unique Node List for transaction approval, which could potentially lead to issues like censorship and security vulnerabilities. Despite being recognized as a significant player in the crypto space, XRP’s place in a strategic reserve continues to be a topic of debate among industry experts and enthusiasts.
