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What is Ripple Labs: the company behind XRP | Coinmerce

What is Ripple Labs, the company behind XRP?

Ripple Labs is an American technology company focused on faster and cheaper international payments using blockchain technology. The company is best known as the developer of XRP, a digital asset that acts as a bridge currency for cross-border transactions. Founded in 2012, Ripple Labs has played a prominent role in the world of financial technology (fintech). While traditional banks rely on slow and expensive systems such as SWIFT, Ripple offers an alternative that enables transactions to be settled within seconds. In this article, you‘ll learn everything about Ripple Labs, the technology behind it, its relationship with XRP, and the legal developments that have shaped the company in recent years.

In short

  • Ripple Labs is the company behind the blockchain payment network RippleNet and the digital asset XRP.
  • The company aims to make international payments more efficient for banks and financial institutions.
  • The long-running lawsuit between Ripple Labs and the SEC was concluded in 2025, bringing more clarity around XRP.
  • Ripple Labs continues to expand through new partnerships across the global financial sector.

What is Ripple Labs?

Ripple Labs Inc. is headquartered in San Francisco and develops software solutions for financial institutions. Its mission is to improve international payments using blockchain technology. Ripple offers several products that together form the RippleNet ecosystem. Banks and payment providers use this network to send money globally without the usual delays or high transaction costs. Unlike many other blockchain projects, Ripple does not focus on consumers but on the B2B market—serving companies, banks, and payment providers seeking more efficient payment infrastructure.

Who founded Ripple Labs?

Ripple Labs was founded in 2012 by Chris Larsen and Jed McCaleb with the goal of building a more efficient payment system than traditional financial networks. Larsen, an experienced fintech entrepreneur, became one of the company‘s early executives. McCaleb, who was previously involved in Mt. Gox and later founded Stellar, provided the technical foundation for what would become the XRP Ledger (XRPL). The original name of the company was “OpenCoin,” which was later rebranded as Ripple Labs.

How does RippleNet work?

RippleNet is a global payment network that connects financial institutions through a single, unified infrastructure. The network consists of three main components:
  • xCurrent – core software that allows banks to process real-time international payments.
  • xRapid (now “On-Demand Liquidity”) – uses XRP as a bridge currency to improve liquidity between different fiat currencies.
  • xVia – an interface that enables businesses to easily send payments through RippleNet.
RippleNet leverages the XRP Ledger, an open-source blockchain that operates independently of Ripple Labs but is often used alongside the company‘s enterprise solutions. Transactions on the XRPL are typically confirmed within a few seconds and cost only a fraction of a traditional international bank transfer.

What is the difference between Ripple and XRP?

Although the terms are often used interchangeably, there is a clear distinction between Ripple, Ripple Labs, and XRP:
  • Ripple Labs: the company that develops blockchain-based payment software.
  • Ripple (brand): the name of the payment network, RippleNet.
  • XRP: the digital asset used as a bridge between different fiat currencies.
XRP is an open-source digital asset that can be used independently of Ripple Labs. Anyone can transact on the XRP Ledger without permission from the company.

How does Ripple Labs differ from traditional banks?

Ripple Labs does not position itself as a replacement for banks, but as a technology partner. While banks rely on slow correspondent banking systems, Ripple offers a direct and transparent infrastructure that:
  • enables real-time payments;
  • significantly reduces transaction costs;
  • optimizes liquidity between currencies.
Many banks now collaborate with Ripple to improve their internal processes rather than replace them entirely.

The lawsuit between Ripple Labs and the SEC

What was the SEC case about?

In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, alleging that the company had sold unregistered securities in the form of XRP tokens. This lawsuit created years of uncertainty across the crypto market.

What did this mean for XRP and the market?

In 2023, a U.S. judge ruled that XRP was not a security when sold on exchanges to retail investors, which was seen as a partial victory for Ripple. In 2025, the case was formally concluded when both Ripple and the SEC withdrew their remaining appeals, bringing long-awaited legal clarity to XRP.

Criticism and controversy surrounding Ripple Labs

Despite its success and technological progress, Ripple Labs has faced criticism. Some argue that XRP is too centralized, as a significant portion of the supply has historically been held by Ripple. Ripple maintains that it does not control the XRP Ledger, which operates as an independent open-source network. With the SEC case resolved, Ripple has increased its focus on transparency, regulatory compliance, and collaboration with regulators worldwide.

The role of Ripple Labs in the crypto market

Ripple Labs plays a unique role in the crypto ecosystem. While many projects focus on DeFi or NFTs, Ripple concentrates on real-world use cases within the existing financial system. Through partnerships with institutions such as Santander, SBI Holdings, and PNC Bank, Ripple helps bridge traditional finance and digital assets. Its emphasis on compliance and institutional adoption makes Ripple a key player in enterprise blockchain adoption.

Frequently asked questions

How can you invest in Ripple Labs?

Ripple Labs itself is not a publicly traded company, but the XRP token is freely tradable. You can buy, sell, or store XRP easily and securely via Coinmerce.

What does Ripple Labs do?

Ripple Labs develops technology that makes cross-border payments faster, cheaper, and more efficient. Its goal is to modernize the global payments infrastructure.

Which blockchain does Ripple use?

Ripple uses the XRP Ledger (XRPL), an open-source and decentralized blockchain capable of processing transactions within seconds.

Conclusion

Ripple Labs is a pioneer in applying blockchain technology to the financial sector. With the conclusion of the SEC lawsuit, the company has cleared a major hurdle and can now fully focus on growth and innovation. Ripple continues to collaborate with banks, fintech companies, and regulators to shape the future of cross-border payments, with XRP playing a central role in that vision.

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