XRP and its issuer, Ripple, aim to streamline cross-border payments, but is it still a potential millionaire-maker? Let's dive into the details.
XRP's Role in the Global Payments Market
Ripple launched the XRP Ledger (XRPL) and the XRP cryptocurrency in 2012, designed as a fast and affordable way for financial institutions to transfer funds. Transaction settlement takes just three to five seconds, with fees under $0.01, making it much cheaper and faster than sending Bitcoin.
The XRPL is the backbone of Ripple Payments, a global network with over 300 banks across six continents. Ripple's goal is to capture a portion of the payments market from SWIFT, the current international money transfer system. In June 2025, Ripple CEO Brad Garlinghouse projected that the XRPL could capture 14% of SWIFT's volume in five years, targeting $21 trillion annually—a highly ambitious goal.
XRP is the native cryptocurrency of the XRPL, used to pay transaction fees and provide on-demand liquidity for banking partners. If usage of the XRPL and Ripple's services increases, it could drive demand for XRP, as the cryptocurrency is crucial to both.
The Problem with XRP
XRP fills a valuable role with Ripple Payments, but Ripple is expanding into broader financial services. Recent moves include acquiring Hidden Road (rebranded as Ripple Prime) and receiving conditional approval to form a federally chartered trust bank. Ripple has also launched Ripple USD, a U.S. dollar stablecoin that offers fast transactions without XRP's volatility.
Ripple is branching into areas where XRP isn't needed. Even in cross-border payments, partners can use Ripple's technology with fiat currency, only requiring XRP for the on-demand liquidity feature, which most don't use. This raises the possibility that Ripple, not XRP, could be the real winner going forward. Ripple remains a private company, but speculation about an IPO this year persists.
Will XRP Make You a Millionaire?
Assuming a cryptocurrency needs 100x returns to be a millionaire-maker—turning $10,000 into $1 million—XRP's current market cap of $115 billion would need to reach $11.5 trillion, nearly three times Alphabet's market cap. The odds of this happening in the next decade are extremely low.
However, XRP could still be a successful investment. The global payments market is projected to grow to $290 trillion by 2030, and XRP has value as a bridge currency. The approval of XRP ETFs may also boost popularity with institutional investors.
Consider a small position in XRP as a high-risk, high-reward investment, but manage expectations. While it could outperform, as it has in the past, it's probably not a millionaire-maker anymore.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!