XRP

Halal Rating :
Comfortable
Last Price $2.39 Last updated:
Rank 4
1D Change 3.58 %
Market Cap $137.21b
Circulating supply 57,410,227,039
Maximum supply 100,000,000,000
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • Medium of Exchange
  • Enterprise Solutions
  • Arrington XRP Capital Portfolio
  • Galaxy Digital Portfolio
  • a16z Portfolio
  • Pantera Capital Portfolio
  • SEC Security Token

Overview

XRP is a digital asset created by Ripple Labs to facilitate fast, low-cost international money transfers and serve as a bridge currency for financial institutions. The XRP Ledger (XRPL) is the underlying blockchain technology that powers XRP transactions.

Intended Utility

The primary purpose of XRP is to serve as a bridge currency for cross-border payments, enabling near-instant settlement between different fiat currencies. It was designed to replace the traditional SWIFT system and nostro/vostro accounts that banks maintain for international transfers.

Actual Utility

XRP is actively used by financial institutions through Ripple's payment network, RippleNet. Notable partnerships include MoneyGram, Banco Santander, and numerous other financial institutions worldwide. The XRPL also supports various use cases including tokenization, DeFi applications, and smart contracts.

Token Distribution and Governance

Ripple Labs initially created 100 billion XRP tokens, with approximately 48% currently in circulation. The company holds a significant portion in escrow, releasing up to 1 billion tokens monthly for ecosystem development. This centralized distribution has been a point of discussion in the community but doesn't affect Sharia compliance as the utility and value transfer are legitimate.

Technology and Revenue Model

The XRP Ledger operates on a unique consensus mechanism called the XRP Ledger Consensus Protocol. Transactions are validated without mining or staking, making it energy efficient. The revenue model is based on legitimate business activities, primarily through the adoption of Ripple's payment solutions by financial institutions.

Crypto Impact

To assign a comfort level investing in XRP from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to XRP.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

We will review your contribution for accuracy before publication.

Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.

You only have one vote per asset so use it wisely.

You can change your vote if you change your mind.

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