Every day, millions send money across borders, only to face delays, high fees, and confusion. Sending money from New York to Tokyo might sound simple, but with traditional wire transfers, it can take several days, and banks take a cut at every stop along the way. That inefficiency is exactly the kind of problem Chris Larsen grew up wanting to solve.
Larsen grew up in San Francisco back in the ’60s, in a working-class family where money was tight but the hustle never stopped. His dad was an aircraft mechanic for United Airlines, and his mom worked freelance as an illustrator whenever she could. Life wasn’t always easy, but their home was full of hard work and determination.
He was the first in his family to go to college, earning a degree in international business and accounting from San Francisco State in ’84. Not stopping there, he later got his MBA from Stanford in ’91, opening up new doors for his future.
Those early years profoundly shaped his thinking, particularly in the realm of finance. He saw firsthand how outdated the global financial system was and became convinced that with the right technology, it could be completely reimagined.
Now, as the co-founder of Ripple Labs, Larsen is pushing to do just that. He’s using blockchain to rethink how the world moves money, with XRP at the center of that mission. This piece walks through his journey, the rise of Ripple, the roadblocks they’ve faced, and how things stand as of May 2025.
Larsen’s early career took him to Chevron, where he audited finances in Brazil, Ecuador, and Indonesia. He saw how global banking failed people: transactions were slow, fees were steep, and access was limited for many.
In the early 1990s, at a Palo Alto mortgage lender, he met Janina Pawlowski, a colleague who shared his drive to rethink finance. Together, they spotted the internet’s potential to level the playing field, setting Larsen on a path to challenge the financial world.
Early Ventures: Redefining Finance
Larsen’s first big move was E-Loan, launched with Pawlowski in 1996. It was one of the first online platforms for mortgages, letting people compare loans and apply without brokers. E-Loan broke new ground by offering free FICO credit scores, a bold move for transparency.
By the early 2000s, E-Loan had grown into a billion-dollar business and even went public. Larsen led the company as CEO until 2005, stepping down when it was acquired by Banco Popular.
Not one to sit still for long, he launched his next big idea in 2006, Prosper Marketplace. It was the first peer-to-peer lending platform in the U.S., and the concept was pretty bold for its time: cut out the banks completely and let regular people lend money directly to other people. Borrowers could get better rates, and lenders could earn solid returns. Prosper raised over $74 million, but it soon hit a wall.
The SEC stepped in, pushing the platform to register its offerings as securities, which forced some operational changes. Despite that, Prosper left its mark, and so did Larsen. By the time he stepped down as CEO in 2012, he was already known as one of the most forward-thinking names in fintech.
But Larsen was just getting started. Those earlier ventures helped shape the foundation for his next and biggest project: Ripple.
In September 2012, Larsen joined them to form OpenCoin. As CEO, he brought fintech expertise and a vision to transform global payments. McCaleb was CTO, Schwartz handled cryptography, and Britto advised on strategy. They acquired RipplePay from Fugger, blending its concepts with their technology.
Ripple started in 2012. At first, it was called Ripple Labs, but in 2015, they dropped the “Labs” and became just Ripple. Around the same time, they made the XRP Ledger. It’s a kind of blockchain that helps send money faster and for less money.
They created 100 billion XRP tokens, with 80 billion set aside for Ripple to help grow the network. To keep things transparent and build trust, most of these tokens were locked away in escrow and only released little by little over time.
What is Ripple?
Ripple is a company from San Francisco that works on making international money transfers faster and cheaper. Their main service helps banks and financial companies send money to other countries quickly, often in just seconds, and without the high fees usually involved.
Most banks still use the old SWIFT system. It’s a decades-old network that can take days to finish a payment, charges high fees, and involves many middlemen. Ripple offers a simpler, faster way to send money directly across borders.
Ripple cuts out the clutter. With its tech, money moves directly between parties in seconds, without all the unnecessary delays or added costs.
The XRP Ledger, an open-source blockchain, powers Ripple’s technology. It uses a consensus protocol, where trusted servers verify transactions instead of Bitcoin’s energy-heavy mining. This makes transactions fast (4-5 seconds) and eco-friendly. Ripple’s mission is an “Internet of Value,” where money moves as easily as information, helping everyone from banks to individuals in underserved regions.
Building Ripple: A Complex Process
Making Ripple wasn’t simple. Schwartz, McCaleb, and Britto built the XRP Ledger to process thousands of transactions every second. Instead of relying on Bitcoin’s energy-heavy mining, they used a consensus method that’s faster and more efficient. This setup made it perfect for banks and financial institutions that need both speed and the ability to handle large volumes.
Larsen’s challenge was getting banks on board. Financial institutions are cautious, so he positioned Ripple as a partner, not a rival. Ripple Payments was built to integrate with existing systems, offering savings without disruption.
XRP: Driving Ripple’s Vision for Fast Global Payments
XRP is a digital token made by Ripple Labs in 2012 to help banks move money across countries faster and cheaper. Instead of replacing banks like Bitcoin tries to, XRP works with them. It acts like a quick currency converter. For example, if a bank in the U.S. wants to send pesos to Mexico, XRP swaps the dollars for pesos instantly, skipping slow and costly middlemen.
When the XRP Ledger launched, 100 billion XRP were created. Ripple kept 80 billion to pay for building the system, hiring people, and working with partners. Most of these tokens are locked up and only released bit by bit to avoid flooding the market.
Ripple made the XRP Ledger open for anyone to use in 2013. Soon, XRP became the second biggest cryptocurrency after Bitcoin.
What makes XRP different is speed; transactions take 4 to 5 seconds, instead of the hours Bitcoin takes.
It’s also built for scale. The ledger can handle up to 1,500 transactions per second, making it ready for real-world, global use by banks and governments.
Today is XRP’s 13th birthday. Since it started back in 2012, XRP has changed the way money gets sent around the world, making it faster and cheaper. It’s come a long way from just being a digital token to becoming a big part of how banks and people move money today. Cheers to 13 years and many more to come!
Real Use, Not Just Hype
Unlike many cryptocurrencies that are still carving out a niche, XRP has already found its footing. Fintech firm Ripple has teamed up with established banks such as Santander to power services like One Pay FX, enabling customers to send money abroad in just seconds.
Ripple’s tech is also helping countries like Palau and Bhutan experiment with their own central bank digital currencies (CBDCs). And it’s not stopping there, Ripple is starting to support tokenized assets too. Think of things like digital versions of real estate or loyalty points. It shows that XRP isn’t just about payments anymore, it’s building a whole ecosystem of practical, real-world uses.
XRP’s Supply and Market Footprint
As of May 2025, around 56 billion XRP are in circulation. The rest? Still in escrow. Each month, Ripple unlocks 1 billion tokens, but if they’re not used, they’re sent right back into escrow. This system helps avoid sudden market dumps and keeps investor confidence intact.
XRP’s current market cap sits at $134 billion, with prices hovering between $2.2 and $2.5. That’s a massive 362% surge since November 2024, largely driven by excitement around a potential U.S. crypto reserve program under President Trump’s new administration.
Community Support and the Decentralization Debate
XRP has one of the most passionate communities in crypto; the “XRP Army”. They’ve stood by the project through legal battles, market dips, and harsh criticism. But it’s not all praise.
One of the biggest debates around XRP is its level of centralization. Critics argue that Ripple holding such a large portion of tokens makes it more like a corporate asset than a true decentralized cryptocurrency. On the other hand, supporters argue that XRP’s real-world use and institutional adoption speak louder than ideology.
Challenges on the Journey
Ripple’s path hasn’t been smooth:
- Ripple vs SEC Lawsuit (2020-Present): Starting in 2020, the SEC took legal action against Ripple, along with its co-founder Chris Larsen and CEO Brad Garlinghouse. The agency claimed they had raised $1.3 billion by selling XRP tokens without properly registering them as securities.
In 2023, a court ruled that XRP sold on exchanges didn’t qualify as securities, but sales to big institutional buyers did.
Charges against Larsen and Garlinghouse were dropped, but the case against Ripple continues, costing over $100 million. It’s stalling XRP ETFs and creating uncertainty.
- Price Volatility: XRP hit $3.84 in 2018, briefly making Larsen one of the world’s richest. Crashes followed, but by May 2025, it’s at $2.1-$2.6, up significantly since late 2024 due to regulatory optimism.
- Adoption Hurdles: Despite deals with Santander and SBI, Ripple hasn’t overtaken SWIFT. A 2024 Forbes report noted just $583,000 in fees in 2023, despite a $143 billion market cap, signaling limited usage.
- Internal Strife: Jed McCaleb’s 2013 exit to start Stellar, a rival blockchain, showed early tensions with Larsen.
- Market Speculation: Larsen’s XRP transfers, like $109 million in January 2025, spark sell-off fears. He’s clarified that moves like a 2020 transfer were for storage, but rumors persist.
Ripple in May 2025
As of May 2025, Ripple remains a fintech leader:
- Leadership: Brad Garlinghouse is CEO, with David Schwartz as CTO, Monica Long as President, and Jon Bilich as CFO. Larsen, Executive Chairman, shapes strategy.
- Global Growth: Ripple acquired Metaco for $250 million in 2023 and got a Singapore payments license. Partnerships like Santander’s One Pay FX and SBI’s MoneyTap show progress.
- Market Standing: XRP’s $134 billion market cap reflects strong investor interest, boosted by Trump’s crypto reserve proposal.
- Legal Outlook: The SEC case lingers, but the 2023 ruling favors Ripple, with hopes for a resolution unlocking new opportunities.
- Philanthropy: Larsen donated $1 million in XRP to San Francisco food banks (2020) and $11.8 million to political groups in 2024. His Rippleworks foundation, started in 2015, supports social ventures.
Larsen’s Wealth and Legacy
Larsen’s net worth is $8.1 billion (May 2025), driven by 5.19 billion XRP tokens and a 17% Ripple stake. In 2018, it hit $59.9 billion. His wallets hold $7.18 billion in XRP (March 2025). His legacy is about more than money; E-Loan, Prosper, and Ripple show his commitment to fairer finance.
Ripple’s Future
Ripple and XRP aim to make money flow like information. They’re chasing more bank partnerships, CBDCs, and tokenized assets. Resolving the SEC lawsuit and a pro-crypto U.S. could propel them further.
Conclusion
Chris Larsen saw a world where finance excludes too many and built solutions to change that. From E-Loan’s transparency to Ripple’s blockchain, he’s redefined how money moves. XRP, with its speed and versatility, is central to this vision.
Despite legal fights and market swings, Ripple’s $143 billion market cap and global reach in May 2025 show its staying power. Larsen’s story is about persistence, taking on tough challenges to make finance work for everyone.
