Ripple

Ripple Labs, Inc. is a U.S.-based fintech company specializing in blockchain-based payment solutions.

What is Ripple?

Ripple Labs, Inc. is a U.S.-based fintech company specializing in blockchain-based payment solutions. Founded in 2012 by Chris Larsen and Jed McCaleb, Ripple aims to facilitate real-time, cross-border payments through its decentralized network, RippleNet, and its native cryptocurrency, XRP. The company operates globally, with a presence in over 50 countries and a workforce of approximately 1,120 employees as of 2023 .

History and Development of Ripple (XRP)

  • Founded: Ripple Labs was founded in 2012 (originally as OpenCoin).
  • Founders: Chris Larsen (co-founder and executive chairman) and Jed McCaleb (also known for co-founding Stellar).
  • Initial Purpose: To improve global payment systems by enabling instant, secure, and inexpensive international money transfers.
  • Network Launch: The Ripple Consensus Ledger (RCL) and XRP token were launched in 2012, making it one of the earliest major cryptocurrencies.

Ripple Labs continues to be the primary developer behind the technology, while XRP operates on an open-source ledger.

Core Business and Services

Ripple's primary offerings include:

  • RippleNet: A global payment network enabling instant, low-cost international money transfers.
  • XRP Ledger (XRPL): An open-source blockchain supporting XRP transactions and decentralized applications.
  • XRP: A digital asset used as a bridge currency to facilitate liquidity in cross-border transactions.
  • On-Demand Liquidity (ODL): A service leveraging XRP to provide liquidity for financial institutions, reducing the need for pre-funded accounts.

Ripple generates revenue through the sale of XRP, transaction fees, and enterprise software solutions .

Financial Performance and Growth

Ripple has undergone several funding rounds, raising approximately $296 million from prominent investors, including Andreessen Horowitz, Google Ventures, and SBI Holdings . In 2024, the company repurchased shares at a valuation of $11.3 billion, down from $15 billion in 2022, indicating a strategic shift towards financial independence .

Recent Developments

  • SEC Settlement: In March 2025, Ripple reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a reduced fine of $50 million, down from the initially imposed $125 million. This settlement concluded a long-standing legal dispute over the alleged sale of unregistered securities .
  • Acquisition of Hidden Road: In April 2025, Ripple announced its agreement to acquire prime brokerage firm Hidden Road for $1.25 billion. This strategic move aims to integrate Hidden Road's post-trade operations into the XRP Ledger, enhancing Ripple's position in institutional decentralized finance .
  • XRP Market Activity: As of May 2025, XRP is trading around $2.33, with a market capitalization of approximately $121.6 billion, reflecting a 1.9% growth in Q1 2025 .

Controversies and Criticisms

  • Centralization Concerns: Ripple has faced criticism for its centralized control over XRP, with the company holding a significant portion of the token's supply. This has raised questions about the decentralization of the XRP Ledger .
  • Regulatory Scrutiny: Beyond the SEC lawsuit, Ripple has been subject to regulatory scrutiny in various jurisdictions, impacting its operations and partnerships.

Future Outlook

Ripple continues to expand its global footprint, focusing on enhancing its blockchain infrastructure and fostering partnerships with financial institutions. The company's recent acquisition and legal resolution position it for potential growth in the evolving digital asset landscape.