XRP News Today: Uphold Partners with Flare Network to Offer XRP Staking via FXRP

Uphold, a leading digital asset platform, is developing a new method to offer staking for XRP holders by leveraging the capabilities of the Flare Network. This approach aims to circumvent XRP’s lack of native staking support by introducing a wrapped version of XRP, known as FXRP, on a decentralized finance (DeFi) compatible platform. Users will have the option to lock their XRP within Uphold’s system in exchange for FXRP, a Flare-based synthetic token designed to operate within DeFi applications.

Simon McLoughlin, the CEO of Uphold, has stated that Flare has established adequate liquidity to facilitate yield opportunities. This liquidity makes the forthcoming staking trial feasible on a broader scale. A limited number of users will participate in a controlled beta test, allowing Uphold to observe performance and regulatory implications before a wide launch.

While the service is expected to launch in select global markets, Uphold remains cautious about introducing the model in the United States due to regulatory concerns tied to the Howey Test. The Howey Test consists of four central aspects that define whether an asset is to be characterized as a security. Uphold is particularly concerned about the risk of establishing an implied profit, which would lead to SEC oversight. McLoughlin emphasized that FXRP’s structure must not resemble an investment contract, and Uphold is reviewing legal interpretations closely to ensure its staking model remains compliant. Even though the SEC has provided further clarification that staking does not necessarily violate securities laws, uncertainty exists, which may lead to its deployment being more slowly in the U.S. than in other jurisdictions.

The collaboration between Uphold and the Flare Network could significantly change the practical application of XRP. By allowing staking via FXRP, users can access yield-generation mechanisms without requiring protocol changes. This transfer may act as a blueprint for how DeFi infrastructure can be utilized to increase utility in tokens without built-in staking mechanisms. It also notes an increasing trend of exchanges offering layered services through selective network integrations.

Uphold’s staking initiative could provide XRP holders with a new way to generate returns. However, regulatory reviews may influence how quickly the model becomes widely available. The integration with the Flare Network is significant as it allows for the creation of smart contracts on the XRP Ledger, which was previously not possible. This development is expected to enhance the utility of XRP and attract more users to the platform. The Flare Network's ability to lock up many coins within the technical systems of smart contracts works to reduce the supply on trading platforms, potentially driving up the value of XRP.

Corporate interest in XRP has been growing, with several public companies committing significant funds to XRP treasuries. This trend signals a rising institutional interest in integrating blockchain-based assets into corporate financial strategies. For instance, Trident Digital, a Web3 firm, plans to raise up to $500 million to establish a corporate XRP treasury. The firm's CEO highlighted the potential of blockchain to transform capital allocation and enable seamless cross-border value transfers. Similarly, other companies have also made substantial investments in XRP, driving the asset’s treasury commitments to nearly $1 billion.

The momentum within the XRP ecosystem is building, with the XRP Ledger expanding its role and pursuing upgrades that enhance interoperability with networks. Institutional adoption of the XRP token is also accelerating, with the U.S. Securities and Exchange Commission reviewing multiple spot ETF applications. These developments could unlock new institutional capital and expand the network’s use cases, further solidifying XRP's position in the digital asset landscape.