Ripple is a system, based on cryptocurrency ideas but centralized, that banks can use for international remittances and interbank transfers of national currencies.
Ripple (XRP) is also the name of an altcoin, created by the same company that is developing the Ripple system; it is somewhat linked to the system, but is not a necessary part of the system, and probably will not be used by the banks that will use the system.
Is the above correct?
Thanks..
This is correct. XRP will be used by market makers to bring liquidity to the system. It happens that paths between two gateways don't have enough liquidity to transact properly. XRP are a tool to work this around.
For example if there is no path between Peruvian nuevo sol and Ruble you can work this way : Sol => XRP => Ruble
This should be automated with autobridging. (Which is not implemented yet I know, but it seems work is progressing).
I hope it answered your question.