First launched in 2012, XRP has been having a moment, emerging as a force in the evolution of cross-border payments. After the U.S. election in November, XRP’s market capitalization surged more than $100 billion by the end of December 2024, making it the third largest crypto after Bitcoin and Ethereum.¹

Designed specifically for use by financial institutions, XRP is more than just another cryptocurrency—it’s a purpose-built asset engineered to deliver speed, efficiency, and cost-effectiveness in international transactions. XRP offers a glimpse into the future of cross-border transactions that traditional systems can’t match. 

So let’s look at what XRP is, what it does, and how XRP is paving the way for a more connected, efficient, and innovative financial world. 

What is XRP?

XRP is a digital asset purpose-built for the financial sector, designed to streamline cross-border payments quickly and efficiently. 

XRP is the native cryptocurrency of the XRP Ledger, a purpose-built, open-source blockchain engineered specifically for high-speed, cost-efficient cross-border payments. Unlike many other cryptocurrencies that serve primarily as speculative instruments or stores of value, XRP was designed with financial institutions in mind, acting as a bridge to streamline transactions between disparate fiat systems. 

Unlike Bitcoin or Ethereum, which rely on energy-intensive proof-of-work or proof-of-stake algorithms, the XRP Ledger operates on a unique consensus mechanism known as the Ripple Consensus Algorithm. This protocol allows a select group of trusted validators to quickly agree on transaction records, meaning XRP transactions settle within three to five seconds at a fraction of the cost (indeed, just fractions of a cent) of other cryptocurrencies. This allows XRP to process up to 1,500 transactions per second.²

As regulatory clarity begins to emerge, particularly the more crypto-friendly stance that is expected from the Trump administration, XRP stands on the precipice of greater institutional adoption, with growing use cases across banks, payment platforms, and emerging financial technologies.³

Use Cases for XRP in the Financial Sector

XRP’s most compelling application is as a bridge currency for cross-border payments. A range of financial institutions seeking efficiency beyond what traditional systems offer are increasingly leveraging XRP to streamline liquidity management and bypass the cumbersome legacy systems that slow down global commerce. XRP’s design addresses the inefficiencies that have long plagued conventional cross-border payments. 

By converting one fiat currency into XRP before settling transactions in another, banks and remittance providers can avoid the delays and costs typically associated with banking networks. This not only accelerates settlement times but also minimizes transaction fees, making XRP an attractive alternative for high-volume international transfers.

Beyond its role in facilitating payments, XRP is deeply integrated into Ripple’s broader ecosystem, notably through the Ripple Payments platform. Financial institutions leveraging Ripple Payments can tap into a unified network that seamlessly connects disparate systems across borders. This integration allows for real-time liquidity management and smoother currency exchanges, even when direct bilateral relationships between banks are absent. Moreover, XRP’s utility is not confined solely to traditional banking; its robust performance and low operational costs have made it a linchpin in emerging fintech applications such as digital remittances, tokenized assets, and decentralized finance initiatives. 

As institutional interest mounts—evidenced by growing support from asset managers—XRP’s blend of technical efficiency and practical application will reshape how financial services are delivered, positioning XRP as a critical component in the digital transformation of global finance. 

The Investment Case for XRP

So if you’re looking to add XRP to your portfolio holdings, what should you keep in mind? 

XRP’s investment case is underpinned by its surge in institutional interest. Recent market activity has been positive, with significant whale accumulation, hinting at a potential breakout that could see the token move from its current levels to new highs.

Adding further credibility to XRP’s investment thesis are emerging financial products, including exchange-traded funds. These instruments offer traditional investors a regulated pathway into digital assets and signal a broader market acceptance that transcends mere speculation. As major asset managers and financial institutions recalibrate their strategies in light of clearer regulatory frameworks, crypto is increasingly seen as a viable component of a diversified portfolio.⁹

While no asset is without risk, the token’s inherent efficiency—delivering fast, low-cost transactions on a platform that continues to evolve—positions it favourably within the rapidly transforming landscape of global finance.  

By serving as a universal bridge currency, XRP’s speed, scalability, and low transaction fees make it an ideal solution for global payments, positioning it as a key player in the future of finance. With a growing roster of financial products—from ETFs to dedicated blockchain launchpads—XRP is not only enhancing the mechanics of international payments but also driving broader innovation across the financial landscape. For investors and policymakers alike, XRP offers a future where digital tools and traditional finance converge to create a more efficient, transparent, and resilient global economy. 

 

ENDNOTES 

  1. Randall, S., “What is XRP and why has its market cap jumped $100B in a month?,” December 2, 2024; https://www.investmentnews.com/industry-news/what-is-xrp-and-why-has-its-market-cap-jumped-100b-in-a-month/258415
  2. Nelson, J. & Hussey, M., “What is XRP? A Cryptocurrency Created For the Financial Sector,” Decrypt, January 31, 2025; https://decrypt.co/resources/xrp
  3. Di Pizio, A., “The SEC’s Latest Crypto Move Could Be Incredible News for XRP (Ripple) Investors,” The Motley Fool, February 15, 2025; https://www.fool.com/investing/2025/02/15/the-sec-crypto-incredible-news-xrp-ripple-investor/
  4. Nelson, J. & Hussey, M., “What is XRP? A Cryptocurrency Created For the Financial Sector,” Decrypt, January 31, 2025; https://decrypt.co/resources/xrp
  5. Sharma, R., “Ripple Ecosystem: What Is The Role of XRP?,” Investopedia, May 31, 2024; https://www.investopedia.com/news/what-role-xrp-ripples-products/
  6. Li, Z. & Bewaji, S., “How cross-border payments are evolving,” Payments Canada, November 26, 2019; https://www.payments.ca/how-cross-border-payments-are-evolving
  7. Ali, M., “Ripple’s XRP Set for Explosive Growth: $1.60 is Just the Start, $8-$20 on the Horizon,” Tron Weekly, November 29, 2024; https://www.tronweekly.com/ripples-xrp-1-60-is-just-start-8-20-on-horizon/
  8. Ali, M., “Ripple’s XRP Set for Explosive Growth: $1.60 is Just the Start, $8-$20 on the Horizon,” Tron Weekly, November 29, 2024; https://www.tronweekly.com/ripples-xrp-1-60-is-just-start-8-20-on-horizon/
  9. Randall, S., “What is XRP and why has its market cap jumped $100B in a month?,” December 2, 2024; https://www.investmentnews.com/industry-news/what-is-xrp-and-why-has-its-market-cap-jumped-100b-in-a-month/258415

Source: Envato Credit: FabrikaPhoto

 

DISCLAIMER 

Published June 18, 2025. 

Evolve Funds Group Inc. is the investment fund manager and portfolio manager. Evolve XRP ETF (“XRP”) is offered by Evolve Funds Group Inc., and distributed through authorized dealers. 

The unpredictable nature of the cryptoassets can lead to loss of funds. 

The information contained herein is a general description and is not intended to be specific investment advice to any particular investor nor intended to be investment or tax advice. You should not act or rely on the information contained herein without seeking the advice of an appropriate professional advisor. The information contained herein is intended for informational purposes as a summary only, does not constitute an offer to sell any securities or a legally binding obligation, it is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses found on the Evolve Funds Group Inc website at https://evolveetfs.com/ 

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