The meaning and mechanism of Ripple (XRP): The forefront of the international remittance revolution [Latest update 2025]

Ripple Meaning and Its True Value

Have you heard of the word “Ripple”? Many people recognize it as a cryptocurrency, but its true essence holds a deeper meaning. XRP is an innovative digital currency with the potential to fundamentally change the traditional concept of international remittance systems.

The world of overseas remittance has long been characterized by waiting days and high fees. XRP offers an answer to these norms with processing times of just a few seconds and low fees of about 0.05 yen. Following the conclusion of the SEC lawsuit in August 2025, legal uncertainties were resolved, and market perception shifted dramatically.

Technical Advantages of XRP: Why Financial Institutions Are Paying Attention

The Ripple network is adopted by over 300 financial institutions across more than 45 countries, thanks to its technical superiority.

Overwhelming Speed and Cost Advantages

Traditional bank transfers take 3 to 5 business days and incur fees ranging from a few thousand to tens of thousands of yen. In contrast, XRP-based transfers are completed in just 3 to 5 seconds, with fees around 0.05 yen. This efficiency difference is highly significant for financial institutions.

Scalability and Processing Capacity

The XRP Ledger (XRPL) can process over 1,500 transactions per second. This far surpasses Bitcoin and Ethereum, providing a foundation capable of handling large-scale international remittance demands.

Efficiency of the Consensus Mechanism

By adopting its own Ripple Protocol Consensus Algorithm (RPCA), XRP eliminates the energy-intensive mining process while enabling fast transaction verification. Trusted nodes called validators handle verification, balancing efficiency and security.

Future Outlook Seen from the Legal Turning Point

The withdrawal of the SEC lawsuit in August 2025 is not just a legal resolution but a turning point that fundamentally changes XRP’s market valuation.

Market Changes Brought by Regulatory Clarity

Financial institutions that previously hesitated to adopt XRP due to legal risks are now beginning to seriously consider its implementation. Announcements of partnerships during the lawsuit period are expected to follow in rapid succession.

Realistic Prospects for Spot ETF Approval

With the SEC establishing comprehensive ETF listing standards in September 2025, listing can now occur in as little as 75 days, faster than traditional individual reviews. The REX-Osprey XRPR ETF has already debuted, and CME Group will start offering XRP futures options from October 13, accelerating infrastructure development for institutional investors.

Development Trends and Acceleration of Practical Use Post-2025

Ripple’s movements clearly reflect rising market expectations.

Mainnet Launch of XRPL EVM Sidechain

The mainnet of XRPL EVM Sidechain, launched on June 30, 2025, makes it easier to port Ethereum-based dApps, significantly expanding XRP’s use cases in the DeFi space.

Full-Scale Entry into RWA (Real-World Assets)

Offering tokens backed by short-term US government bonds (“OUSG”) and stablecoins (“RLUSD”) is making asset management on blockchain a reality. This sector is expected to be one of the fastest-growing areas in the future.

Expansion of Smart Contract Capabilities

The integration of programming functions into the XRP Ledger is progressing, and smart contracts implemented via WebAssembly modules called “Hooks” are now available for testing on the testnet.

Reasons for Maintaining a Top Position in Market Capitalization Rankings

XRP’s position as the third-largest cryptocurrency by market cap is not just due to speculative demand but is rooted in actual use by financial institutions and clear use cases.

Major global financial institutions such as Bank of America, Santander, SBI Holdings, and Mitsubishi UFJ Bank participate in the Ripple network, vividly demonstrating XRP’s practicality.

Market Outlook Toward 2026

Currently, XRP’s price is approaching its all-time high, with many analysts suggesting bullish forecasts. The complete resolution of legal uncertainties, the realization of ETF approvals, expanded partnerships with financial institutions, and the full-scale development of RWA businesses—all happening simultaneously—make 2026 a crucial turning point for XRP.

If large-scale adoption in the international remittance market and significant inflows from institutional investors materialize, XRP’s valuation could rise even further.