About XRP (XRP)
XRP is the native digital currency of the open-source, decentralised XRP Ledger, originally created by the fintech company Ripple to facilitate high-speed global transactions. Unlike energy-intensive networks, it uses a unique consensus protocol to validate and settle peer-to-peer payments with sub-second finality. In Australia, individuals can purchase XRP using AUD through PayID transfers on AUSTRAC-registered platforms like Swyftx.
Why investors may choose XRP
XRP offers distinct utility by attempting to solve friction in international remittance markets. It allows individuals to invest in the underlying technology that powers efficient cross-border settlements without relying on traditional intermediaries.
For Australians looking to navigate market volatility, automated features like Auto Invest facilitate dollar-cost averaging, enabling consistent, long-term accumulation. For a deeper understanding of the technology, users often refer to our in-depth guide to Ripple (XRP).
XRP vs Bitcoin
Differentiating between these major digital assets requires looking at their underlying consensus mechanisms and utility. XRP is a highly-efficient network built specifically to execute rapid, low-cost institutional payments using a network of verified validators. Conversely, comparing it to Bitcoin highlights BTC's primary design as a secure store of value relying on energy-intensive Proof-of-Work mining. Generally, some consider XRP to provide exposure to global financial infrastructure, while BTC is often held as a store of value.
Feature | XRP (XRP) | Bitcoin (BTC) |
Primary Purpose | Cross-border payments & Web3 | Store of value |
Consensus Mechanism | XRP Ledger Consensus Protocol | Proof-of-Work (Mining) |
Supply Model | Fixed (100 billion, pre-mined) | Fixed (21 million, mined) |
What drives XRP's price?
XRP's market valuation can be driven by institutional network usage, ecosystem expansion, and supply dynamics.
Network adoption
If participation increases among global banks and financial institutions utilising RippleNet, the demand for the asset as a bridge currency will continue to impact its open market liquidity. Furthermore, the ecosystem's utility is expanding; in 2024, Ripple released RLUSD, an NYDFS-approved USD-pegged stablecoin built on the XRP Ledger, merging traditional finance and decentralised ecosystems.
Supply mechanics
Unlike Bitcoin, XRP does not use mining to create new coins. It has a hardcapped maximum supply of 100 billion tokens, all of which were created at inception. A significant portion of this supply is held in cryptographically secured escrow accounts, with periodic, predictable releases introducing managed supply dynamics to the market.
Market sentiment
As a globally traded asset, XRP remains highly sensitive to macroeconomic indicators, global banking partnerships, and regulatory developments.
How to store XRP in Australia
After purchasing XRP, investors must decide on a storage method. Assets can remain on a regulated custodial exchange or be withdrawn to a private hardware wallet for direct ownership. For more information on self-custody options, refer to our crypto wallet guide.
