Home/Guide/Blockchain Encyclopedia/Basic Concepts/XRP “Reboots” Consensus: From King of Cross-Border Payments to Global Financial Infrastructure
XRP “Reboots” Consensus: From King of Cross-Border Payments to Global Financial Infrastructure
Related Articles
After years of relative quiet, XRP has once again become a focal point in the market. This resurgence is driven both by the resolution of regulatory disputes involving its parent company Ripple and by growing interest in XRPFi, ETFs, and other developments, marking XRP’s return to broader public attention in a renewed form.
1. What is XRP?
1.1 XRP Overview
XRP is the native cryptocurrency issued by Ripple in 2012, designed to establish a real-time payment and settlement system for global financial institutions. Unlike Bitcoin’s proof-of-work mechanism, XRP operates on the Ripple Protocol Consensus Algorithm (RPCA), enabling low energy consumption while facilitating cross-border payments within 3–5 seconds at minimal transaction costs. XRP features high throughput, low latency, and scalability.
As a “bridge currency,” XRP’s primary value lies not in decentralization rhetoric but in its practical integration with banks and payment providers to reduce the cost and time of international remittances. As of 2025, Ripple has partnered with over 300 financial institutions across more than 70 countries, including SBI, Rakuten Bank of Japan, and the Saudi Arabian central bank.
1.2 Key Advantages of XRP
The XRP network offers an average transaction confirmation time of just 3 to 5 seconds, vastly outperforming traditional banking transfers, which can take several days. It can process approximately 1,500 transactions per second and is designed to scale further via protocol upgrades.
Transaction fees on XRP are extremely low, typically less than $0.01 per transaction. Compared with the high fees incurred by Bitcoin or Ethereum during peak periods, XRP provides a cost-effective solution for both micro and large-value payments.
XRP’s total supply of 100 billion tokens was issued in a single batch at inception, eliminating the energy consumption and hardware demands associated with Bitcoin-style mining. The network uses Ripple’s proprietary RPCA consensus algorithm, maintained by a set of pre-approved validator nodes to ensure ledger consistency.
In practice, many national currencies lack direct exchange markets and require intermediary currencies like the US dollar or euro for conversion. XRP serves as this “bridge asset,” providing on-demand liquidity between currency pairs without direct markets. This On-Demand Liquidity (ODL) mechanism has been adopted by financial institutions in several countries, especially in Latin America and Southeast Asia.
1.3 RippleNet and Ecosystem Solutions
RippleNet, Ripple’s network, consists of several key components:
- xCurrent: Enables secure messaging and settlement between banks.
- xRapid (now integrated into ODL): Utilizes XRP to provide instant liquidity, reducing the need for pre-funded accounts.
- xVia: Offers a streamlined payment interface for corporate clients.
These services have been consolidated into the Ripple Payments solution, serving major global financial institutions including Santander, American Express, and Standard Chartered.
2. Market Performance: The ETF Boom and Technical Dynamics
In 2025, XRP demonstrated strong market performance, with significant price volatility followed by an overall upward trend. At the beginning of the year, XRP’s price steadily increased, reaching a peak near $3.39. At the time of writing, XRP is priced at $2.24, with a 24-hour trading volume exceeding $100 million. Its market capitalization ranks fourth globally, trailing only BTC, ETH, and USDT.
From a technical perspective, XRP is currently trading within an ascending wedge consolidation pattern, with support levels concentrated around $2.10 and $2.00. A breakdown below these levels could trigger a retracement to $1.78. Conversely, if XRP breaks through the resistance zone between $2.35 and $2.40, it may initiate the next upward target range of $2.90 to $3.20.
3. XRP Spot ETF Progress: Approval Chances Surge, Boosting Market Confidence
3.1 Approval Chances Surge
ETF approval has long been a key focus for investors in the cryptocurrency market. According to Polymarket data, the likelihood of the U.S. Securities and Exchange Commission (SEC) approving an XRP spot ETF in 2025 has surged to 98%. This news has sparked widespread market attention and discussion, with investors eagerly anticipating the approval of the XRP spot ETF.
3.2 Major Financial Institutions Filing Applications
As approval odds rise, several major financial institutions including Bitwise, Grayscale, Franklin Templeton, and 21Shares have submitted applications for XRP spot ETFs. These filings not only reflect growing demand for regulated XRP investment products but also provide strong support for the approval of the XRP spot ETF.
3.3 Market Impact Analysis
Approval of the XRP spot ETF would bring increased institutional capital into the XRP market, significantly amplifying demand and potentially driving up the price. Additionally, such approval would enhance XRP’s market recognition and regulatory compliance, laying a solid foundation for its long-term development.
4. The Third Revaluation Era of XRP
As one of the elder generation public chain assets, XRP was once regarded as a symbol of being “traditional, compliant, and outdated.” However, after undergoing multiple transformations—including cross-border payments, litigation challenges, market downturns, and the resurgence of ETF interest—XRP is no longer just a “bridge currency for banks.” It is evolving into a vital part of the global digital financial infrastructure. Over the next three months, XRP will not only serve as a short-term target for speculators but also stand as a significant macro factor in the global crypto narrative.
5. How to Purchase XRP on MEXC
XRP’s rise not only signifies its increasingly solid foundation in the global payment settlement system but also highlights its unlimited potential as part of the global digital financial infrastructure. With growing expectations for XRP spot ETF approval, rising market recognition, and expanding use cases, XRP is becoming a favored asset among investors. For those keen to seize market opportunities and capture gains in XRP investments, selecting a secure, convenient platform with low trading fees is a critical step toward successful investing.
MEXC stands out as the premier platform for trading XRP, delivering exceptional liquidity, robust order book depth, and ultra-competitive trading fees. It offers abundant liquidity, deep order books, and ultra-low trading fees, allowing investors to enjoy efficient trading experiences while minimizing costs and maximizing returns. You can trade XRP tokens on MEXC at highly competitive fees.
1) Log in to the MEXC App or official website
3) Choose your order type, enter the amount and price, and complete the transaction.
Additionally, MEXC has launched a 0-fee XRP Spot trading event, enabling users to trade with even lower costs—save more, trade more, and earn more. Choosing MEXC to invest in XRP means having a safe, convenient, and opportunity-rich trading environment where you can stay ahead of market trends and seize every investment chance.
Disclaimer: The information provided in this material does not constitute advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it serve as a recommendation to purchase, sell, or hold any assets. MEXC Learn offers this information for reference purposes only and does not provide investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. MEXC is not responsible for users' investment decisions.