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Posted July 16, 2026 at 1:16 pm
XRP was created by Ripple Labs (Ripple) to enable fast cross-border payments across the Ripple Labs network (RippleNet).
By using XRP for cross-border payments, financial institutions can bridge currencies and ensure payments are sent and received in local currency on either side of a transaction in as little as three seconds. For example, a U.S. customer wants to send U.S. dollars to a recipient in Japan. Instead of pre-funding a yen account in Japan, the U.S. bank converts USD into XRP on a digital asset platform. XRP is transferred instantly over the RippleNet to the Japanese bank. The Japanese bank converts the XRP into Japanese yen and credits the recipient’s account. In this scenario, XRP acts as a bridge currency, providing liquidity and enabling near-instant settlement without the banks having to maintain pre-funded accounts in each foreign currency. This reduces capital requirements and transaction costs, especially for institutions handling multiple currency corridors.
In fact, Ripple’s global infrastructure supports fiat and digital assets across a variety of use cases and industries, offering global fiat and stablecoin payouts, with beneficiaries able to receive in fiat currency or stablecoin.
The XRP supply, capped at 100 billion tokens, was pre-minted and operates on the XRP Ledger, with issuance either in circulation, held in escrow, or reserved for future release.
Some investors find XRP attractive due to its speed, low transaction costs, and use in payment infrastructure. Trades typically settle on the XRP Ledger in seconds.
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. Eligibility to trade in digital asset products may vary based on jurisdiction.
Investing in digital assets such as XRP may involve significant risk and is typically suitable only for investors who understand how these assets work. Prices can be highly volatile, and you may lose some or all of your investment. Digital assets may also face changing regulations, technology issues, fraud risks, and cybersecurity vulnerabilities. In addition, access to trading platforms or liquidity can vary across markets and may affect your ability to buy or sell assets quickly. You should carefully consider your financial situation, risk tolerance, and investment objectives, and you may want to consult a qualified financial professional before investing in digital assets.
Stablecoins and Tokenized assets are not legal tender, are not insured by the FDIC or any government agency, and may lose value; they carry risks including issuer insolvency, regulatory changes, operational failures, and potential inability to redeem for fiat currency. By transacting in stablecoins, you acknowledge and accept these risks.
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