Stellar vs. Ripple

Stellar (XLM) and Ripple (XRP), two networks aiming to improve the ease of completing transactions for payment providers and financial institutions, are often compared against each other. 


In fact, Jed McCaleb, Stellar’s creator, served as the Chief Technology Officer (CTO) of Ripple before leaving the project to create Stellar Lumens. 

ripple vs stellar lumens
Stellar (XLM)


Stellar was created to challenge traditional transactions by allowing its users to send money and assets globally, and was intended to target the unbanked.

Ripple XRP vs Stellar Lumens XLM

Ripple (XRP)

Ripple, in an effort to challenge traditional transactions, presented a new way of operating a blockchain’s transaction and records system for payment settlements, mainly targeting banks.

To gain a deeper understanding of the similarities and differences between the two, continue to read a detailed side-by-side comparison of Stellar vs Ripple below.

The difference between Stellar and Ripple



Stellar was created with the aim to change the way currencies and assets were transferred globally and has been described as everything from a payment rail to an exchange. 


The Stellar platform incentivizes a distributed network of computers to run a software that enables anyone to send money and assets in ways that have traditionally been the domain of payment providers.


Stellar differs from Ripple in attempts to position itself as a kind of decentralized exchange, with a built-in order book that keeps track of the ownership of Stellar Lumens assets. These assets can then be traded on its platform between users using its XLM cryptocurrency.



XRP was created to complement traditional payments by migrating transactions that occur today within financial institutions to a more open infrastructure.


In order for XRP to work, Ripple built the XRP ledger, a software that introduced a new way of operating a blockchain’s transaction and records system.


Similar to Bitcoin, the XRP ledger allows users to send and receive its XRP cryptocurrency using digital signatures.

Useful resources

If you are interested in learning more about Stellar and Ripple, please visit Kraken’s What is Stellar XML? and What is Ripple XRP? pages.


Want more in depth information on specific cryptocurrencies and blockchain projects? If so, visit our Learn Center to further your education on this ever-growing space.