The built-in exchange

Since 2012, the XRP Ledger has had an exchange built in, where accounts swap XRP and tokens directly.

The XRP Ledger has its own decentralized exchange, running since the ledger launched in 2012. Accounts can swap XRP and tokens with each other directly, with no company in the middle.

A trade is called an offer: an amount of one asset you'll give for an amount of another. The ledger matches offers against each other, and any part that isn't filled stays in the ledger until someone takes it or it's canceled.

Automated market makers (AMMs) add another way to swap. An AMM holds a pool of two assets and sets the exchange rate with a formula. For each trade, the ledger can use offers, AMMs or both, whichever gives the better rate.

Because anyone can issue a token with any name, a token on the exchange can look official and be worth nothing. Always check who issued a token before accepting it in a swap.

Sources

Decentralized Exchange (xrpl.org) (checked 2026-10-22)
Automated Market Makers (xrpl.org) (checked 2026-10-22)

General information about how the XRP Ledger works, not financial, legal or tax advice.