XRP Drops 4.22% Amid mXRP Launch for 6%-8% Yield

XRP's latest price was $2.85, down 4.224% in the last 24 hours. The cryptocurrency XRP is making significant strides in the decentralized finance (DeFi) space with the launch of mXRP, a tokenized yield product. This new product, announced at the XRP Seoul 2025 conference, is designed to offer estimated annual returns of 6%-8%. Developed by Midas, a tokenization platform focused on institutional-grade financial instruments, in collaboration with Interop Labs and powered by Axelar’s cross-chain infrastructure, mXRP represents a first-of-its-kind tokenized exposure product offering meaningful, XRP-denominated yield strategies. The unveiling highlighted efforts to activate dormant XRP supply through structured yield opportunities, with the product designed with regulatory awareness and technical safeguards. The mXRP token is issued on the new XRPL EVM through audited smart contracts, and Midas provides the structuring and infrastructure for the token. Axelar, described as the “gateway to onchain finance,” facilitates XRP’s integration into decentralized finance by connecting over 80 blockchains. Functionally, mXRP requires users to deposit XRP collateral into a tokenized certificate structure that tracks onchain and offchain strategies. These strategies, managed by external “risk curators,” can involve market-making, liquidity provisioning, and similar approaches. Hyperithm has been designated as the initial curator. Strategy outcomes are reflected in the token’s performance through smart-contract logic, creating a direct link between yield generation and token value. Dennis Dinkelmeyer, co-founder and CEO of Midas, noted that the product establishes a transparent mechanism for XRP holders to access onchain yield strategies and potentially unlock new financial use cases within the ecosystem.

The XRP Ledger (XRPL) has crossed a significant milestone, evolving from pilot projects into a powerful player in institutional decentralized finance (DeFi). Over the past year, XRPL has surged in importance, breaking into the top 10 blockchains for real-world assets (RWAs). It also achieved its first $1 billion month in stablecoin volume, cementing its role as a trusted settlement layer for both crypto-native firms and regulated financial institutions. This progress emphasizes XRPL’s growing influence in the DeFi space, driven by institutional adoption and use. At the heart of this transformation is XRP, the network’s native digital asset. Every new feature developed for XRPL strengthens its institutional appeal and expands the demand for XRP itself. This momentum underscores XRPL’s potential to handle two of the most critical use cases in global finance: stablecoin payments and collateral management. The growing demand highlights XRPL’s evolution as a leading blockchain platform in regulated finance, though scalability and compliance will remain key considerations in the months ahead. XRPL has strengthened its core infrastructure with several key innovations that significantly enhance its institutional utility. The introduction of three pivotal features — Credentials, Deep Freeze, and Simulate — has made XRPL more suitable for enterprise use. Credentials, built on Decentralized Identifiers (DIDs), enable institutions to verify critical attributes like KYC status and accreditation, laying the groundwork for regulated DeFi markets. Deep Freeze allows issuers to freeze accounts linked to illicit activity, ensuring compliance with regulations such as sanctions. Simulate provides developers with the ability to test transactions before they are committed to the network, reducing risk for high-value transactions and ensuring greater reliability. Moreover, the releases of XRPL Version 2.5.0 and Version 2.6.0 have enhanced the platform’s functionality. These updates introduced features such as Batch Transactions, Token Escrow, and upgraded Automated Market Makers (AMM). These changes ensure that XRPL remains well-equipped to handle the demands of institutional DeFi, including stablecoin issuance, RWAs, and liquidity management. Tokenization remains central to XRPL’s long-term strategy. The Multi-Purpose Token (MPT) standard, which is set to launch soon, will allow complex financial instruments like bonds and structured products to be tokenized and traded on-chain. This marks a significant step forward in enabling institutional-grade trading and settlement within the XRPL ecosystem. Additionally, the upcoming launch of XRPL’s native lending protocol will be a game-changer for institutional finance. This protocol will enable pooled lending and uncollateralized loans directly on the ledger. With embedded compliance features like KYC and AML controls, this protocol will improve capital efficiency and provide lower-cost funding options for borrowers while offering yield opportunities for lenders. XRPL is also preparing for the integration of zero-knowledge proofs (ZKPs), which will allow for privacy-preserving transactions without compromising compliance or transparency. The first application of ZKPs, set for release in 2026, will focus on confidential MPTs for privacy-preserving collateral management. This will provide a crucial layer of security for institutional DeFi adoption. ZKPs will not only enhance privacy but also increase scalability, making XRPL an even more attractive option for high-value financial transactions. By leveraging these cryptographic innovations, XRPL aims to offer privacy with accountability, ensuring that institutions can fully embrace blockchain technology while maintaining the necessary compliance standards.

XRP Ledger validators are facing a critical deadline to update their systems, or risk losing network connectivity. The XRP Ledger Foundation is transitioning from its old Unique Node List (UNL) to a new one, and validators still relying on the outdated default UNL (dUNL) need to make adjustments to their rippled configuration by September 30. After this date, nodes using the old UNL will be unable to connect to the network, with the deprecated UNL expiring completely on January 18, 2026. According to Vet, a dUNL validator on the XRP Ledger, the migration is crucial. Validators that don’t update will experience disruptions, or their nodes may entirely lose access to the network. This update is essential to maintain connectivity, and the consequences of neglecting it could severely impact validator participation in the XRP ecosystem. Validators must act fast to ensure they can continue to access the XRPL Foundation’s trusted validators list. Without this update, validators relying on the old UNL will be disconnected, causing network instability. The deadline is rapidly approaching, and failure to comply could result in complete disconnection from the XRP Ledger, halting the node’s participation. Additionally, validators who reference a mix of old and new lists could face further disruption. Therefore, it is vital that all XRP validators update to the new UNL to avoid unnecessary complications. In another significant development, the “Multi-Purpose Tokens” (MPT) amendment on the XRP Ledger is nearing activation. The XLS-33 amendment, which is in its final days of activation period, will take effect on October 1, 2025. This update has gained majority support and aims to simplify token management, especially for common use cases like stablecoins. MPTs will introduce a new type of fungible token that eliminates the need for complex two-way trust lines. They will also allow metadata to be stored directly on the XRP Ledger, ensuring immutability. This move will streamline token interactions and enable a more efficient ecosystem for users.

Ripple unveiled a roadmap for the XRP Ledger (XRPL) that introduces protocol-level lending, zero-knowledge privacy features, and expanded tokenization standards. The roadmap centers on three core announcements: a native lending protocol scheduled for Version 3.0, confidential Multi-Purpose Tokens arriving in the first quarter of next year, and the immediate availability of compliance tools, including Credentials, Deep Freeze, and transaction simulation capabilities. The native lending protocol will enable pooled lending and underwritten credit to be directly executed at the ledger level through Single-Asset Vaults, which aggregate liquidity and issue transferable vault shares. The system automates loan lifecycle management, including issuance, repayment tracking, and reconciliation, while maintaining off-chain risk assessment where institutions operate established models. XRPL’s zero-knowledge proof (ZKP) implementation represents the roadmap’s privacy initiative. Confidential Multi-Purpose Tokens, scheduled for release next year, will support privacy-preserving collateral management while maintaining the compliance and auditability standards required by regulated institutions. The ZKP integration will enable proving KYC compliance without revealing personal details, allowing auditors to verify activity while protecting counterparty transaction data, and supporting proof-of-reserves without disclosing sensitive wallet information. These capabilities address institutional requirements for confidential yet compliant on-chain operations. The roadmap also introduced the Multi-Purpose Token (MPT) standard, launching in October, which enables complex financial instruments to carry essential metadata, including maturity dates, tranches, and transfer restrictions, without requiring smart contracts. MPTs allow bonds, money market funds, and structured products to be represented and traded natively on XRPL with full DEX integration planned for seamless trading and AMM liquidity pools. The roadmap also mentioned three features to expand institutional adoption capabilities. The first is credentials linked to Decentralized Identifiers, which enable trusted issuers to attest KYC status and regulatory permissions. The second is Deep Freeze, allowing token issuers to halt transfers from flagged addresses until trust lines are unfrozen, providing critical sanctions compliance tools. The last is Simulate, which lets developers test transactions before network commitment, reducing enterprise risk for high-value operations. The roadmap also introduced Permissioned Domains and Permissioned DEX features, which are currently undergoing validator voting. These tools create gated participation based on credential verification while preserving XRPL’s decentralized exchange efficiency. According to the announcement, the modular compliance stack enables institutions to define participation requirements, ensure privacy through selective credential disclosure, and leverage order-book-based trading with full AML/KYC controls. The roadmap goal is to position XRPL and its native assets, XRP and RLUSD, to service institutional stablecoin payments, collateralized lending, and tokenized asset trading natively at the protocol layer. Version 3.0 represents the convergence of lending, tokenization, permissioned markets, and privacy features into a comprehensive institutional DeFi platform.

Regulatory clarity for XRP is emerging in certain international jurisdictions. The Dubai Financial Services Authority (DFSA) officially approved the XRP token within the Dubai International Financial Centre (DIFC). This authorization allows licensed financial institutions operating within the DIFC to incorporate XRP into their service offerings. Similarly, Colombia's financial regulatory body clarified that the asset is not classified as a security under its national framework. These developments are viewed as positive steps towards establishing clear rules for using the digital asset within regulated environments in these regions.

Development activity and enterprise adoption associated with the XRP Ledger (XRPL) persist. Significant progress has been made in upgrading the network's core protocol. The implementation of the Hooks amendment proposal represents a major technical enhancement, introducing smart contract-like functionality. This upgrade enables more complex and automated operations directly on the ledger, potentially broadening its utility for developers and businesses. Concurrently, Ripple continues expanding its cross-border payment solution, RippleNet, leveraging the digital asset for liquidity in certain corridors, particularly targeting financial institutions seeking faster international settlement options.

Integration of XRP into consumer-facing financial services is progressing. Major online payment platforms are exploring support for deposits and withdrawals involving the digital asset. Specific announcements regarding its inclusion in new exchange-traded fund (ETF) products are anticipated but remain pending final regulatory decisions. Furthermore, technical advancements focus on enhancing interoperability between different blockchain networks and improving liquidity pathways for the asset.