What Is XRP?
XRP is the native digital asset of the XRP Ledger, used for transaction costs and other ledger functions. It is distinct from Ripple, a company that develops payment-related products; owning XRP is not owning company equity.
One ledger, more than one kind of asset
XRPL can represent issued tokens as well as native XRP.2 Those tokens have their own issuers and conditions; sharing a ledger does not make them XRP. This distinction matters when reading a wallet balance or an exchange withdrawal option. Identify the actual asset, not simply an interface that says it supports the XRP Ledger.
Fees and account requirements serve different purposes
An XRPL transaction pays a cost in XRP that is destroyed rather than paid to a miner.3 Accounts also have reserve requirements designed to discourage ledger spam; a reserve is not the same as a transaction fee. Consult the current ledger rules before moving a small balance, because the amount shown in a wallet need not equal the amount immediately spendable.
A destination tag identifies the platform customer
A custodial platform can use one ledger address for several customers and distinguish them with destination tags.4 The address routes the payment to the platform; the tag helps its internal system identify the intended account. An on-chain success message does not establish that the correct customer was credited. Copy both fields from the recipient's current deposit instructions when a tag is required.
Frequently asked questions
Can new XRP be mined?
No. XRPL documentation states that all XRP was created with the ledger.2
Does every XRP payment require a destination tag?
No. The receiving arrangement determines whether one is needed; follow its explicit instructions.4
Is an issued stablecoin on XRPL the same as XRP?
No. Native XRP and issuer-created tokens have different asset identities and obligations.2
Sources
Risk level and disclaimer
Elevated market/product risk. Tag errors and mistaken token identity can obstruct access even after a ledger transaction validates. This material is educational and does not constitute investment, legal, or tax advice.
Related terms and articles
- XRP Price Prediction 2026: Factors, Uncertainty, and Limits
- XRP Price Prediction 2030: Why Long-Term Estimates Are Uncertain
- How to Buy XRP: Access Requirements, Fees, and Risks
About this draft
Prepared for CryptoWiki as an AI-assisted editorial manuscript. No named human author or independent reviewer has been verified. Facts and local legal suitability need editorial review before public release.
Update record
- 2026-10-28: Initial source-based manuscript and figure prepared.
Next step
When examining MGBX deposit instructions, confirm whether the selected XRP route requires a tag before sending anything.