XRP's Expanding Utility Through Axelar's Staking Integration and Multi-Chain Expansion

The XRP Ledger (XRPL) is undergoing a transformative phase in 2025, driven by strategic partnerships and technological advancements that are redefining its role in decentralized finance (DeFi). At the forefront of this evolution is Axelar, a cross-chain interoperability protocol, which has integrated XRP into its ecosystem through staking and liquid staking derivatives. This integration not only enhances XRP's utility but also positions it as a critical asset in the multi-chain DeFi landscape.

Validator-Level Utility and Staking Integration

Axelar's recent announcement to add XRP as a staking asset for validators marks a pivotal shift in the token's utility. By allowing validators to stake XRP to secure the Axelar network, the protocol introduces a new revenue stream for XRP holders while reinforcing network security according to reports. This move aligns with Axelar's broader strategy to expand XRP's role beyond its traditional use cases, such as cross-border payments, and into the validator economy.

Complementing this initiative is the launch of mXRP, a liquid staking token issued on the XRP Ledger's EVM-compatible sidechain. Users can swap XRP for mXRP, gaining exposure to yield-generating opportunities while retaining liquidity. According to a report by The Crypto Basic, mXRP has already attracted nearly $30 million in deposits within its first two weeks, underscoring strong market demand. The token's design-built on audited smart contracts-enables seamless integration with DeFi protocols, including lending markets and cross-chain trading platforms.

Cross-Chain Expansion and Institutional Adoption

Axelar's Interchain Token Service (ITS) has further amplified XRP's utility by connecting it to over 80 blockchains. This interoperability has unlocked new use cases, such as tokenization and cross-chain trading, driving interchain activity to nearly $23.3 million in the second half of 2025. For institutional investors, the ability to earn up to 10% APY through mXRP while maintaining cross-chain access represents a compelling value proposition. Analysts suggest that these developments could propel XRP's total value locked (TVL) in DeFi to $10 billion by 2025.

The XRP Ledger's institutional appeal is further bolstered by its compliance-focused infrastructure. Features like Credentials, Deep Freeze, and Simulate provide tools for managing regulatory requirements, making the ledger an attractive platform for institutional-grade DeFi solutions. Additionally, the introduction of a native lending protocol in 2025 is expected to create low-cost credit markets, further solidifying XRPL's position in institutional finance.

Strategic Positioning in the DeFi Ecosystem

While Ethereum and Solana dominate traditional DeFi metrics, XRP's unique value proposition lies in its cross-border payment infrastructure and stablecoin ecosystem. For instance, Ripple's On-Demand Liquidity (ODL) processed $15 billion in cross-border payments in 2024, and this figure is expected to grow according to market analysis. Meanwhile, XRP-based stablecoins like RLUSD are gaining traction as institutional-grade settlement assets according to analysts.

Compared to Ethereum's $50 billion TVL and Solana's high-throughput capabilities, XRP's TVL of $64.4 million appears modest according to market data. However, its focus on institutional DeFi and ESG-aligned infrastructure-such as energy-efficient consensus mechanisms-differentiates it in a crowded market. The XRP Ledger's 2025 roadmap, which includes EVM compatibility and tokenization of real-world assets (RWAs), is designed to bridge this gap by attracting developers and liquidity providers.

Future Outlook and Investment Implications

The convergence of Axelar's staking integration, XRP's cross-chain capabilities, and institutional adoption metrics paints a bullish picture for the asset. With spot XRP ETFs accumulating $941 million in assets and tokenized RWA projected to reach $9.4 trillion by 2030, XRP's strategic positioning in global finance is gaining momentum. For investors, the key risks include regulatory uncertainties and competition from Ethereum and Solana. However, the growing demand for compliant, energy-efficient blockchain solutions suggests that XRP's multi-chain expansion could drive sustained value creation.

In conclusion, XRP's integration with Axelar and its expanding utility in DeFi highlight its potential to evolve from a payments-focused asset to a cornerstone of institutional-grade cross-chain finance. As the XRP Ledger continues to roll out institutional-grade features, the asset's trajectory in 2025 and beyond warrants close attention from both retail and institutional investors.