Ripple, the world’s number two cryptocurrency, has quickly become the less expensive alternative to bitcoin.

Continue Reading Below

The digital currency, officially known as XRP, is attempting to ripple through the $700 billion cryptocurrency market, soaring 38,000% last year alone.

But Ripple has recently seen significant declines after having tumbled 26% from its record high of $3.84 yesterday after the biggest U.S. exchange, Coinbase, put to rest rumors that the company would soon add the digital currency to its marketplace.

In an exclusive interview with FOX Business’ Liz Claman, Ripple CEO Brad Garlinghouse said XRP’s overnight price drop is part of an early stage of volatility.

“There is a lot of volatility in the digital asset market broadly, and certainly that is true in the bitcoin market, it’s been true for XRP and I think that’s because these markets are very nascent. This is still the earliest innings of the creation of what I think is really going to be a new asset category,” he said.

Ripple is working with American Express (NYSE:AXP) and three of the top five money transfer companies worldwide to implement its XRP digital platform in their payment systems.

“We are working with three out of the five largest in the world, and we’ll publically make those announcements with those customers when they are ready,” Garlinghouse said on FOX Business’ “Countdown to the Closing Bell.”

The cryptocurrency CEO said Ripple is using XRP to “solve a global payments problem” by providing a digital payment network for financial institutions to make speedy and less expensive foreign exchange transactions.

“There’s literally $27 trillion of money parked around the world between banks in order for them to settle payments between themselves,” Garlinghouse said.