How does Ripple make money?- Ripple business model

How does Ripple make money?

Ripple is a technology-level company that provides the most valuable & quality solutions to transfer money globally using the power of blockchain technology & various other services. Ripple Labs Inc. started Ripple Company. It is a US-based technology company.

RippleNet is a network that allows any institution to run its node. Ripple connects with financial institutions to operate the node. Financial institutions include banks like Union Credit, Santander, Axis Bank, & many others.

Ripple began in the year 2012. It has risen to be one of the most prominent blockchain & cryptocurrency projects. Ripple Company raised $293million in the venture funding round.

The company generates money by selling XRP, payment fees, profits from investments & interest fees on loans. The below given each of section describes the deep knowledge of it.

XRP SalesRipple has made its self cryptocurrency, which is named XRP. These currencies are capable of transferring funds within Ripple’s Payment network. RippleNet & XRP does not base on blockchain technology like some other crypto tokens such as Bitcoin.

During the beginning of the XRP currency in the year 2013, whereas 100 billion coins got used as supply. Larsen & McCaleb, where the co-founder of Ripple, owned 20 billion while the rest was get assigned to the remaining co-founders along with Ripple Labs.

In the year 2017, the company itself stated that it would put 55 billion XRP in escrow. And later it will provide up to 1 billion into the market every month.

Ripple earns money whenever XRP gets dumped into the market. As of the current status of XRP, one XRP is near to $0.97 & this helps Ripple make up to $1 billion of the income in XRP each month.

Payment Fees

Transferring money from one to another on the RippleNet results in a small transaction fee. Network Participants of Ripple pay about 0.00001 XRP for every transaction. In the means for $0.97, only $0.00097 will be get charged for one transaction.

Ripple’s motive is to compete on price & generate money based on much more transactions. Ripple has a capability of 50,000 transactions per second (TPS). However, 1,500 TPS Visa has got recorded.

RippleNet is comparably cheap when the transaction is going to convict abroad & in a different currency. A foreign transfer may cost up to 10% of the sum which has got sent.

Other Earning sources for Ripple

Interest Fees

Ripple also began a loan product back in the year 2020 that is Line of Credit. This service allows users or customers to access On-Demand Liquidity (ODL) to get a loan.

The loan will get served as XRP. The past existing XRP will get used as backing. However, the loans will get sanctioned by institutions. So, the risk factor will be null.

Ripple gets money based on interest fees that users or customers pay to access the loan. Ripple didn’t localize its interest rates. Some of the challenging services are Aave, BlockFi, or TrueFi.


Ripple has more than 15 investments from the start to the present situation of companies like Coil, Keyless, or Tranglo. And these investments were in the form of XRP & the invested companies will convert it into other cryptos or cash out in any of the currencies.

Ripple can outsource money from these investments by selling the shares it bought in a deal at a higher price point later on. Investments got done through a different type of entity which is called Ripple X.

Ripple Funding, Revenue & Valuation

Ripple has claimed a raise of a total of $293.8million over 13 rounds of venture capital funding.

Some notable investors of Ripple are Core Innovation Capital, SBI Investment, Mouro Capital, Tetragon Financial Group, Route 66 Ventures, & many more.

At present, Ripple has a valuation equal to $10 billion based on the year 2019, when Ripple raised its Series C round.

Ripple has an estimated revenue of $71.8million per year. An estimated revenue based on Ripple’s per employee is said to be $130,000. As of 2020, 552 employees are working in the Ripple Company. The employee growth rate in Ripple Company is 2%.

History of Ripple

Ripple has its headquarter in San Francisco, California. Ripple came into existence in the year 2012 & founded by Chris Larsen, Jeb McCaleb, David 

Schwartz & Arthur Britto.

As Ripple came into existence in the year 2012, & within five years, it established itself as a leading & fast-growing distributed ledger technology in the world. Ripple Protocol has become a very source for various financial institutions. 

Years 2015 & 2016 were proven & been marked as very beneficial years for the growth of the Ripple Company because the offices were being opened in Sydney in April 2015, in London in March 2016 & in Luxembourg in June 2016.

In the year 2017, Ripple summed up its two new features, Escrow & Payment channels. These both helped to develop the performance & scalability of the Ripple Consensus Ledger (RCL). These new features assure the companies to use Ripple Consensus Ledger (RCL) & Interledger Protocol (ILP). 

And whichever company uses the technology will get the benefits of XRP. However, the benefits are like providing them with a faster, cheaper experience for cross-border payments.

Santander was the first-ever U.K. bank to use Ripple for cross-border payments by using common & simple payments apps running on Ripple’s underlying technology in the year 2016. 

In the year 2017, Ripple stated, it has signed ten more banks. However, the banks are Japan-based MUFG, Spain-based BBVA, India-based Axis & Yes Bank, Sweden-based SEB, & many more.

In the year 2020, Ripple announced that it has a presence of RippleNet cloud that services customers to send & receive payments with one integration & the same Ripple Payment Object amongst all customers on RippleNet. This indirectly helps to create less friction & more standardization when customers are ready to scale.

Ripple’s Competitors

Ripple Company has various competitors based on its respective industries. Some of them are giving very high competing challenges for Ripple. This makes Ripple come up with much more new ideas.

Below given are some of the tough competitors for Ripple.

  • Stripe

The number of employees working in Stripe is 3618. 

Revenue of Stripe- $470.3 million.

  • Coinbase. 

The number of employees working in Coinbase is 1895. 

Revenue of Coin-base- $246.4million.

  • Hyperledger. 

The number of employees working in Hyperledger is 95. 

Revenue of Hyperledger- $12.4 million.

  • Feedzai. 

The number of employees working in Feedzai is 458. 

Revenue of Feedzai- $66.4 million.

  • Alkanza. 

The number of employees working in Alkanza is 74. 

Revenue of Alkanza- $15.5 million.

  • Watsi. 

The number of employees working in Watsi is 37. 

Revenue – $4.8million.

  • Leapfin. 

The number of employees working in Leapfin is 18. 

Revenue of Leapfin- $2.6 million.

  • ZestFinance. 

The number of employees working in ZestFinance is 113. 

Revenue of ZestFinance- $14.7 million.

So, these all above-listed companies are just a small list of the competitors for the Ripple Company. There are also some of the biggest competitors available in the industry with whom Ripple is competing.


Ripple is a technology-level company that provides the most valuable & quality solutions to transfer money globally using the power of blockchain technology.

Global level customers & users are constantly connected to Ripple so that they also benefit from the services provided by the company. And the same services help companies to generate revenue. 

A company with a 552 employees workforce is constantly giving their best to reach the company to a much higher level than past year status. And as of the year 2021, Ripple is just one year back to complete its decade in the industry & as years are passing company has its convicted growth in the present & also going to be on the rise in the future.

Frequently Asked Questions

1. What is RippleNet?


Using blockchain & modern APIs, Ripples makes & enables various financial institutions to connect to the network- RippleNet, to transfer money globally, instantly & reliably.

Getting connected to RippleNet makes these three key issues to get solved. That is related to payments like Speed & certainty, Liquidity management & transparency. With the help of RippleNet, users can instantly access new markets, expand the valuable services & provide the best user experience to global level payments.

2. What is Ripple?


Ripple is a technology-based company that services the most efficient & reliable ways to transfer money globally with the help of blockchain technology. Ripple is the one & only blockchain company available today which has its products in commercial use. 

Ripple’s global payments network is RippleNet. It includes more than 300 financial institutions covering 40 countries & six continents. Ripple works with regulators, governments & central banks so that the development of transferring the money proceeds.

3. Which banks use Ripple?


Ripple has connected to various banks globally. And that bank uses the necessary services provided by Ripple like RippleNet, & many more. The banks include MUFG, BBVA, Axis & Yes Bank, SEB, & many more.

4. What services does Ripple provide to its users?


Ripple is a technology-level company that helps users by providing the most reliable money transfer services globally through RippleNet. Ripple services its users a carefree & trouble-free money transfer which got connected with providers, corporates & banks.

How does Ripple make money?- Ripple business model

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