mXRP Transforms XRP from Dormant Asset to DeFi-Yield Powerhouse

Midas and Axelar have launched mXRP, the first liquid-staking token on the XRP Ledger (XRPL), offering XRP holders the potential to earn yields of up to 8% annually. Unveiled at XRPL Seoul 2025, the product converts dormant XRP into yield-bearing assets through a tokenized certificate framework, integrating with XRPL’s Ethereum Virtual Machine (EVM) sidechain and DeFi protocols. The initiative, developed by real-world asset (RWA) platform Midas and Interop Labs, aims to unlock new utility for XRP by enabling liquidity and DeFi participation.

The mXRP token operates by allowing users to deposit XRP into audited smart contracts, where it is wrapped and minted into mXRP tokens. These tokens represent staked XRP and can be deployed across DeFi platforms for strategies such as liquidity provisioning and market-making, generating targeted net returns of 6-8% annually. The yield is derived from third-party asset managers, with Hyperithm serving as the initial risk curator. Dennis Dinkelmeyer, co-founder and CEO of Midas, emphasized that mXRP addresses the issue of XRP’s historically low utilization, transforming it into a productive asset while maintaining liquidity and flexibility.

Axelar, the cross-chain interoperability protocol, plays a critical role in bridging XRP to the EVM sidechain, enabling seamless integration with Ethereum-based DeFi tools. Georgios Vlachos, co-founder of Axelar, stated that the platform’s role as a “Gateway to Onchain Finance” facilitates tokenization and trading innovations, positioning XRP to participate in institutional-grade financial ecosystems. The token’s design includes transparency through audited contracts and a focus on compliance, with Midas holding over $1 billion in total value locked (TVL) in its existing tokenized products.

The launch coincides with XRP trading at approximately $2.80, with a market capitalization of $168 billion. Analysts note that mXRP’s potential to generate demand for XRP could influence its price trajectory, particularly if adoption of liquid staking accelerates. However, the token carries risks inherent to DeFi, including smart contract vulnerabilities and bridge security concerns. Early adopters in Europe and Asia have gained access, with plans to expand to other regions pending regulatory alignment.

The introduction of mXRP marks a strategic shift for the XRP ecosystem, transitioning from a payments-focused asset to a DeFi-enabled one. By leveraging XRPL’s EVM compatibility, the token bridges XRP’s legacy in cross-border transactions with modern DeFi applications, potentially attracting institutional investors seeking yield-generating instruments. RippleX, Ripple’s innovation arm, has highlighted the broader institutional DeFi roadmap for XRPL, including compliance tools and zero-knowledge proof integrations, as part of its effort to establish the ledger as a settlement layer for global institutions.

Industry observers suggest that mXRP’s success will depend on liquidity depth, DeFi integrations, and community education. While the 6-8% yield target is competitive with existing liquid staking products like stETH and mSOL, mXRP’s unique value proposition lies in its EVM-based architecture and XRP’s established market presence. Challenges include building trust among XRP holders unfamiliar with DeFi and ensuring robust security across bridging and smart contract layers.