XRP and XLM Frequently asked questions
XRP (Ripple) and XLM (Stellar) are often associated because they share similar goals, origins, and functionalities in the world of cryptocurrency. However, they also have distinct differences. See below:
XRP and XLM are designed to improve cross-border payments.
They aim to make sending money internationally faster, cheaper, and more efficient compared to traditional systems like SWIFT.
Both can act as bridge currencies, converting one currency to another almost instantly.
Shared Founders:
Jed McCaleb, one of Ripple’s co-founders, left Ripple in 2013 to start Stellar (XLM).
McCaleb envisioned Stellar as a more decentralized and accessible platform than Ripple.
Feature | XRP (Ripple) | XLM (Stellar) |
---|---|---|
Target Audience | Banks, financial institutions, and enterprises. | Individuals, underserved populations, remittances. |
Focus | Institutional use for cost savings and efficiency. | Financial inclusion and peer-to-peer payments. |
Ownership | XRP supply is heavily controlled by Ripple Labs. | XLM is governed by the Stellar Development Foundation (non-profit). |
Adoption | RippleNet partners with banks like Santander, SBI. | Stellar partners with remittance companies like MoneyGram and IBM. |
Bridge Currency for Payments:
XRP and XLM are both used to facilitate currency conversions without requiring pre-funded accounts in multiple currencies.
Blockchain Technology:
Both operate on highly efficient blockchains with fast transaction speeds and low fees.
Similar Narratives: Both address the same fundamental problem—inefficiencies in the traditional financial system.
Friendly Rivalry: Jed McCaleb’s split from Ripple and creation of Stellar makes the comparison natural.
Adoption by Institutions: Both are favored by financial institutions for their speed and low costs.
Regulatory Discussions: They often come up together in debates about the future of cryptocurrencies in global finance.
XRP (Ripple):
Focuses on working within the existing financial system (e.g., banks and regulators).
XLM (Stellar):
Aims to disrupt the system by prioritizing financial inclusion and banking the unbanked.
XRP and XLM are like two sides of the same coin:
XRP: The “bank-friendly” solution, helping financial institutions save money and time.
XLM: The “people-focused” solution, enabling affordable remittances and access to financial services for everyone.
They share a lot of similarities in technology and purpose, which is why they’re often compared, but their audiences and approaches set them apart.