Stellar (XLM) vs. Ripple (XRP): What Are the Differences and Which Is Better?

Blockchain-based solutions for banking and financial institutions are the focus of the platforms Stellar and Ripple.

Banks and other financial institutions are looking for ways to modernize and streamline their payment systems. As a result, they are turning to blockchain technology and digital assets to solve these problems. Stellar (XLM) and Ripple (XRP) are two of the most popular digital assets. Both projects have partnered with leading banks and financial institutions.

While both Stellar (XLM) and Ripple (XRP) are often lumped together as ‘blockchain for banks and financial institutions’ projects, there are quite a few key differences between the two. In this article, we’ll look at some of the key differences between Stellar and Ripple and try to determine which is the better investment.

Key Takeaways

When it comes to the world of digital currency, there are two stand-out names for banks and financial institutions: Stellar (XLM) and Ripple (XRP). Both have unique benefits that make them appealing to investors. Ripple is focused on providing a global payment solution for banks and financial institutions.

In contrast, Stellar is more geared toward individuals and businesses, focusing on serving the underbanked population. Regarding transaction speed, both Ripple and Stellar are very fast, with a transaction time of 3-5 seconds. They also have low fees.

Both coins have different values, with XRP being higher. XRP also has a higher market capitalization, making it slightly more appealing to investors. Stellar uses a different consensus algorithm than Ripple.

What Is the Difference Between XRP and Stellar?

|Features |XRP |XLM | |:———– |:———– |:———– | |Launch Date| Ripple was founded in September 2012.| Stellar was created in July 2014.| |Usage|Ripple focuses on serving banks and other financial institutions.|Stellar focuses on providing affordable financial services to individuals, especially those in developing countries.| |Control| Ripple is built on a decentralized open-source network (XRP Ledger). However, it is controlled by a private, permissioned, closed network—Ripple Labs, making it fairly centralized.| Stellar is an open-source project that runs on a decentralized network, making it fully decentralized.| |Supply| The max supply of XRP is a fixed 100 billion XRP coins. The coin is deflationary, meaning it decreases over time due to a burning mechanism that destroys the transaction fees.| XLM has a max supply of 50 billion coins with a 1% yearly inflation rate. It is inflationary, meaning it increases over time.| |Algorithm | Ripple uses RPCA—Ripple Protocol Consensus Algorithm—whereby nodes known as validators verify transactions on the network.| Stellar uses the SCP—Stellar Consensus Protocol—to achieve high security against malicious acts.|

What Do XRP and Stellar Have in Common?

|Features |XRP and XLM | |:———– |:———– | |General Purpose| Both digital assets are used to facilitate cross-border payments.| |Founder| They are both co-founded by Jed McCaleb.| |Transaction Time and Fees| The two coins have an average transaction time of 3-5 seconds with cheap fees.|

What Is XRP?

It is a means of payment to make international payments faster and more efficient. XRP is one of the fastest and most scalable digital assets—3-5 seconds transaction time. In addition, it has low transaction fees, which makes it an attractive alternative to other digital assets like Bitcoin or Ethereum. It is a native cryptocurrency of the Ripple Network.

Ripple is a currency exchange and remittance network that operates in real-time. It is built on a distributed open-source internet protocol and consensus ledger. As a result, ripple offers a seamless experience for sending money globally via blockchain.

Ripple was co-founded in 2012 by Chris Larsen and Jed McCaleb. The company’s goal is to provide one frictionless experience to send money globally using the power of blockchain technology. The company also provides financial institutions with a blockchain platform called ‘xRapid.’ xRapid is a platform that serves as a bridge to allow banks to quickly and cheaply send money across borders.

Buy XRP on Guarda Wallet

What Is Stellar?

Stellar is a platform that connects banks, payment systems, and people. It’s built on the idea that the world needs a low-cost way to move money across borders, so it offers a fast, reliable, and affordable way to move money around the world. It is also a decentralized blockchain platform that allows for developing decentralized applications (dApps). Jed McCaleb, the co-founder of Ripple and founder of Mt. Gox, also co-founded the Stellar network system with former lawyer Joyce Kim in 2014. This came after he quit from Ripple in 2013 following a disagreement. With its native cryptocurrency—XLM, Stellar’s unique structure allows for near-instant transactions and low fees.

Buy XLM on Guarda Wallet

Which Crypto Is Right for You?

The best cryptocurrency for you will depend on your personal needs and preferences; thus, there is no generally accepted answer to this question. Though, as you have seen from the differences and similarities, they both have their strengths and weaknesses. Ripple has a stronger team of developers and a more robust platform. Stellar, on the other hand, has a more decentralized network.

You should also keep in mind that Ripple Labs is currently going through an SEC lawsuit that started in December 2020. The company and its two executives—Brad Garlinghouse and Chris Larsen—were sued after selling 1.3 billion dollars of unregistered securities.

Where to Buy, Sell, or Exchange XRP and XLM?

Both coins are listed on Guarda Wallet. Guarda is one of the top crypto wallet platforms that allows users to access these coins via Web/Desktop and mobile. You must download the app on your mobile and desktop to create an account or do so through your browser. Then you can start transacting.


Stellar (XLM) and Ripple (XRP) use distributed ledger mechanisms for fast and cheap payments. Suppose you’re looking for an open-source network that serves unbanked individuals and small businesses. In that case, Stellar is a good choice. However, if you’re looking for a network that serves banks and other financial institutions, then Ripple is a better choice.

Although Ripple is decentralized, there are some centralized elements, making Stellar more decentralized. Therefore, after reading the article and considering their features, it is up to you to decide which one is better.

Create XRP and XLM Wallets on Guarda


1. Is XRP or XLM better?

There is no clear winner between the 2, as they each have their strengths and weaknesses, as well as differences and similarities. They both allow near-instant and near-zero transactions.

2. Is XLM the same as XRP?

No, XLM is the native token of the Stellar network. It is used to facilitate trades for unbanked individuals. On the other hand, XRP is a cryptocurrency created by Ripple Labs Inc. It can be used as a store of value for banks and financial institutions.

3. Which token is the most secure: Ripple or Stellar?

Both tokens offer different benefits and drawbacks. However, Stellar is generally considered more secure than Ripple because of its consensus protocol—SCP.

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