XRP holders are seizing new yield opportunities through mXRP, the pioneering liquid staking token within the XRP ecosystem. On September 25, Axelar, a blockchain infrastructure provider, announced that a vault housing 6.5 million tokens was fully subscribed just two days after its launch, prompting an increase in the vault capacity to 10 million tokens. This rapid uptake signifies a strong demand from investors keen on utilizing idle XRP assets for decentralized finance (DeFi) purposes, with the total value of assets locked in the mXRP vault nearing $20 million.
mXRP aims to unlock new utility for XRP, which, despite being one of the older crypto assets, has seen much of its supply remaining inactive for years. Operating on the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain, mXRP allows users to stake their XRP via Midas, a tokenization platform. In return, users receive a wrapped version of XRP—mXRP—potentially yielding annual returns of up to 8%. The staking process requires users to bridge their XRP to the sidechain and deposit it into tokenized vaults, where it is allocated to yield strategies managed by independent “risk curators.” At the time of the launch, Hyperithm was engaged in this capacity, directing funds toward market-making and liquidity provisioning efforts.
Dennis Dinkelmeyer, co-founder and CEO of Midas, emphasized the project’s goal to activate long-dormant capital within the XRP ecosystem. He stated, “Much of the XRP supply has been dormant for years; mXRP provides a transparent mechanism for users to access on-chain strategies.”
This initiative is part of a larger movement aimed at enhancing XRP’s utility in the world of DeFi. Currently, XRP’s DeFi landscape is significantly less developed than that of competitors like Ethereum, which boasts hundreds of billions in total value locked. Sergey Gorbunov, co-founder of Axelar, noted that the protocol’s cross-chain capabilities enable XRP, typically restricted to its own ledger, to interact with various DeFi applications across different blockchains.
Additionally, other projects are following suit in expanding XRP’s use cases. The recent launch of Flare Network’s FXRP exemplifies this trend, allowing XRP to engage in lending, liquidity pools, and various DeFi functions while still maintaining exposure to the underlying asset. This flurry of activity underscores a pivotal moment for XRP, as stakeholders seek to integrate it more robustly into the burgeoning decentralized finance sector.
