All Things XRP (@XRP_investing), a prominent crypto commentator on X, recently offered a clear breakdown of the difference between RippleNet and the XRP Ledger (XRPL).
What RippleNet Does
All Things XRP explained that RippleNet is Ripple’s enterprise-grade network used by over 300 financial institutions across more than 55 countries. It facilitates fast and cost-effective cross-border payments.
According to him, RippleNet “handles messaging, compliance, and routing.” Its design positions it as a smarter and leaner alternative to SWIFT, aiming to simplify how banks and fintechs manage international transactions.
RippleNet does not rely on blockchain to settle payments directly. Instead, it focuses on the secure transfer of information and instructions necessary for settlement. It is a closed, permissioned network that offers institutions a reliable way to initiate and process global payments with speed and accuracy.
🧠⚠️ DID YOU KNOW?
RippleNet and the XRP Ledger aren’t the same thing—but they work together to reinvent global payments.
Here’s how👇
➡️ RippleNet = Ripple’s enterprise-grade payment network
Used by 300+ banks & fintechs across 55+ countries for fast, cheap cross-border…
— All Things XRP (@XRP_investing) May 4, 2025
The Role of the XRP Ledger
The XRP Ledger is the decentralized blockchain that powers the digital asset XRP. It is open-source and does not require mining, allowing it to settle transactions in three to five seconds, unlike many other blockchain networks that may take hours.
Built for speed, tokenization, decentralized finance, and central bank digital currencies, the ledger serves as the underlying infrastructure Ripple leverages when liquidity is required on demand.
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Unlike RippleNet, XRPL is accessible to anyone and is not controlled by Ripple. It operates independently and allows users to transact XRP and issue tokens directly on the ledger. This makes it an important tool for developers and institutions looking to build blockchain-based financial applications.
How They Work Together
Although RippleNet and XRPL are separate, they connect through Ripple’s On-Demand Liquidity (ODL) solution. When a RippleNet user opts to use ODL, the transaction is executed using XRP via the ledger.
As the crypto expert described, a typical process might involve one bank sending USD, converting it to XRP, transferring the tokens across the ledger, and then converting it to another currency for the receiving bank. This eliminates the need for pre-funded accounts, shortens settlement times, and reduces costs.
RippleNet is the institutional gateway for initiating payments, while the ledger serves as the decentralized pathway for moving value. This relationship is critical in making real-time cross-border payments practical and scalable.
Coinbase has explained that XRP’s utility in Ripple’s payment network makes it attractive to institutions, and the digital asset’s numerous features and advantages make it one of the most appealing assets in the crypto space.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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