XRP’s $180B Dormant Supply Awakened by mXRP’s Yield-Generating DeFi Breakthrough

XRP’s DeFi expansion has accelerated with the launch of mXRP, a liquid-staking product offering yields of up to 8% for XRP holders. Developed by Midas in collaboration with Interop Labs and Axelar, mXRP is the first tokenized yield product integrated with the XRP Ledger’s EVM sidechain. The product aims to activate dormant XRP supply—estimated at over $180 billion—by converting it into yield-bearing assets accessible through decentralized finance (DeFi) protocolstitle1^[1].

mXRP operates by allowing users to deposit XRP as collateral into a tokenized certificate framework, generating an ERC-20 token that tracks market-neutral strategies such as liquidity provisioning and market-making. These strategies are managed by third-party asset managers, including Hyperithm at launchtitle2^[2]. The base yield is projected at 6–8% annually, with potential for additional returns through DeFi integrations like lending markets and native protocols on the XRP Ledger EVM ecosystemtitle3^[3].

The product’s design leverages Axelar’s cross-chain infrastructure, enabling mXRP to be deployed across over 80 blockchains. This interoperability enhances its utility, allowing users to deploy mXRP in lending protocols or liquidity pools for compounding returnstitle4^[4]. Dennis Dinkelmeyer, co-founder and CEO of Midas, emphasized that mXRP addresses XRP’s historical challenge of low utilization by providing a transparent mechanism for on-chain strategies. “With strong community demand and DeFi integrations, we believe mXRP can play a key role in unlocking new use cases for XRP,” he statedtitle5^[5].

Axelar’s role as a bridging protocol is critical, facilitating the tokenization of XRP and enabling its use as a gas token on the XRP Ledger EVM sidechain. This integration, announced at XRPL Seoul 2025, expands XRP’s reach into DeFi ecosystems while maintaining the XRP Ledger’s speed and low-cost transaction advantagestitle6^[6]. The product’s scalability is underscored by its potential to generate up to 10% APY in the long term, with delta-neutral strategies managed by trusted asset curators to ensure consistent returnstitle7^[7].

Market analysts highlight mXRP’s potential to drive XRP demand through a “perpetual buyer” effect. As the product scales, yield strategies are expected to repurchase XRP, creating sustained buying pressure. Projections suggest that if mXRP’s assets under management (AUM) reach $10 billion by mid-2026, it could generate hundreds of millions in annual XRP demandtitle8^[8]. This dynamic aligns with broader trends in DeFi, where tokenized assets and composability are reshaping traditional financial instruments.

The launch of mXRP follows the introduction of the first XRP-backed stablecoin, signaling a strategic push to enhance XRP’s utility in DeFi. Collectively, these developments aim to position XRP as a foundational asset in decentralized markets, addressing prior limitations in yield generation and composability. While regulatory restrictions limit mXRP’s availability in the U.S., U.K., and sanctioned jurisdictions, its adoption in eligible markets is expected to drive liquidity and innovation in the XRP ecosystem.