Growing interest in XRP — some call it “the bankers’ crypto” — from the crypto futures market helped push up the token’s value in recent months. The company behind it, Ripple, is growing the token’s utilities, aiming to transform global payments.
BTSE has listed XRP Perpetual Futures Contracts (XRPPFC), part of the exchange’s ongoing commitment to expanding the range of high-quality digital assets on its trading platform.
XRP is the native token of Ripple, a blockchain-based digital payment network. Instead of relying on blockchain mining, it uses a consensus mechanism through a group of bank-owned servers that can confirm transactions. Its aim is to use less energy than other tokens, like Bitcoin, and to enable transactions to be confirmed within seconds at minimal costs.
XRP and XRP Futures (XRPPFC)
The newly listed XRP perpetual futures adds new trading opportunities to BTSE’s global user base. For XRPPFC, BTSE supports 50x leverage and USD as the underlying asset.
XRP has a market cap of nearly $50 billion, with 2.11% market cap dominance, according to CoinGecko. The token price was $1.06 on October 7, 2021, with a circulating supply of over 46 billion tokens out of 100 billion in total. Its price surged by more than 140% leading up to mid-August, much thanks to interest from the crypto futures market.
XRP futures is an agreement where two parties agree to buy or sell XRP that goes through a predetermined future date as well as price. The futures contract derives its value from the cryptocurrency itself, so the price of XRP futures contracts will move in sync with XRP’s price.
RippleNet and XRP Ledger
XRP runs the platform RippleNet, which is on top of a distributed ledger database called XRP Ledger. The XRP Ledger allows users to send and receive cryptocurrency through the usage of public and private key cryptography, where transfers between addresses require digital signatures.
RippleNet is run by Ripple, while the XRP Ledger is open-source and is based not on a blockchain but on a distributed ledger database.
Previously, only Ripple’s cross-border payments product, xRapid, used the XRP cryptocurrency; its other solutions, xVia and xCurrent, did not use XRP but could connect to the XRP ledger. In October 2019, Ripple combined all three products under the RippleNet network, a single offering where companies can access on-demand liquidity by selling XRP for fiat currency on the exchange and converting the funds into the desired cryptocurrency or asset.
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