Is XRP a security or a currency?
XRP is a digital asset, not a security or a currency.
XRP is the native asset of the Ripple network, an open-source distributed ledger technology (DLT) platform that enables fast and secure transactions between two parties. XRP is used to facilitate payments on the Ripple network, but it can also be used as an investment asset. Unlike traditional currencies, XRP does not have any intrinsic value and cannot be used to purchase goods or services.
Instead, its value is derived from its utility as a bridge currency on the Ripple network. XRP acts as a bridge between two different currencies, allowing users to quickly and securely transfer funds across borders without having to convert their money into another currency first. This makes it an attractive option for banks and other financial institutions looking for a faster and more cost-effective way to send money internationally.
XRP is not considered a security by the US Securities and Exchange Commission (SEC). The SEC has stated that digital assets like XRP are not securities because they do not represent ownership in any company or entity. Instead, they are considered commodities or property that can be bought and sold on exchanges like any other asset.
