XRP News Today: XRP Evolves from Payment Coin to DeFi Powerhouse in 2025

In 2025, XRP holders have access to a range of innovative platforms to generate yield on their holdings, reflecting a broader shift in the token’s utility from traditional payment-focused applications to decentralized finance (DeFi) opportunities. These platforms offer varying return structures, security measures, and user-friendly interfaces, catering to both casual and institutional investors. Among the leading options, Binance Earn, Kraken, Nexo, Crypto.com, and KuCoin have emerged as top contenders, each offering distinct benefits for XRP-based yield generation. Binance Earn, for instance, provides a flexible option for users to choose between short-term savings and fixed-term programs, with annual percentage yields (APYs) ranging from 0.5% to 2% [1]. Kraken focuses on secure lending with user-friendly tools, offering up to 1.2% APY [1]. Meanwhile, Nexo distinguishes itself by providing daily payouts and the potential for higher returns—up to 8% APR—for users who hold its native token, NEXO [1]. The rise of these platforms signals an expanding ecosystem for XRP-based earning strategies, particularly as DeFi adoption continues to grow.

A notable development in the XRP yield space is the introduction of the “XRP Earn Account” by MoreMarkets in collaboration with Flare, a blockchain interoperability network. This product allows XRP holders to earn yield through automated on-chain strategies without the need for complex interactions with multiple blockchains or protocols [2]. The mechanism works by bridging XRP into Flare’s FXRP token, which is then deployed into DeFi strategies such as lending or liquid staking. MoreMarkets handles the technical execution behind the scenes, ensuring a simplified user experience while retaining full control of assets [2]. This non-custodial approach is a key differentiator, as it minimizes exposure to centralized risks while still providing competitive yields. The integration also leverages Firelight, a liquid staking protocol, to further enhance returns by allowing users to stake FXRP for rewards [5]. The collaboration highlights a growing trend in the broader XRPFi movement, which aims to position XRP as a programmable asset in on-chain financial markets [3].

The partnership between Flare and MoreMarkets has been praised for its institutional-grade security and regulatory alignment, which are critical for attracting professional investors. Flare’s integration with custodians like BitGo and Fireblocks ensures compliance with institutional requirements, making the platform more attractive for high-value transactions [5]. Additionally, the use of FAssets, a native bridging protocol, ensures that native XRP remains on the XRPL, with FXRP acting as a collateral-backed representation on the Flare network [5]. This approach reduces custodial risks while maintaining transparency in asset management. The collaboration has also been highlighted as a validation of Flare’s mission to bring smart contract functionality and real-world data to the broader crypto ecosystem [5]. MoreMarkets’ CEO emphasized that the XRP Earn Account is already generating value for early adopters and aims to expand access to on-chain yield opportunities for a wider audience [2].

Beyond direct yield platforms, XRP lending services have also evolved in 2025, offering alternatives for users who prefer borrowing against their holdings instead of staking or lending. Lantern Finance, for example, has emerged as a leading option for XRP-backed loans in the U.S., providing competitive rates and borrower-friendly terms [4]. The platform supports up to a 40% loan-to-value (LTV) ratio and offers a 3-day grace period in the event of a margin call, with no liquidation fees—features that make it more favorable than many alternatives [4]. Internationally, Nexo continues to provide global reach for XRP loan services, albeit with higher interest rates and stricter repayment conditions [4]. Other platforms, such as CoinRabbit and YouHodler, offer faster access to smaller loans and higher LTV ratios, respectively, catering to diverse borrowing needs [4]. The expanding options in the XRP lending space reflect a growing demand for liquidity solutions that do not require selling assets, particularly in a market where volatility remains a concern.

The introduction of yield and lending products for XRP in 2025 aligns with broader industry trends toward programmable assets and tokenized finance. XRP, long associated with cross-border payments and settlement, is now being repositioned as a versatile asset capable of participating in DeFi and on-chain capital markets [3]. This shift is supported by ongoing innovations such as tokenized bonds and private credit experiments on the Flare network [3]. However, the success of these developments will depend on factors such as regulatory clarity, infrastructure maturity, and sustained adoption by both retail and institutional users. For now, the growing availability of yield-generating tools and lending options indicates a maturing XRP ecosystem, with more users seeking to maximize returns on their holdings in a structured and secure manner.

Source:

[1] Best Platforms to Earn Yield on XRP in 2025 – Top 5 Options (https://coinpaper.com/10749/5-best-ways-to-earn-on-xrp-in-2025-safe-and-high-yield-platforms)

[2] XRP Holders Get New Yield Opportunity as MoreMarkets ... (https://cryptopotato.com/xrp-holders-get-new-yield-opportunity-as-moremarkets-partners-with-flare/)

[3] XRP Holders Can Now Earn Yield On-Chain Through Flare ... (https://www.ccn.com/news/crypto/xrp-defi-flare-partnership-secure-on-chain-yield/)

[4] XRP Loans Platforms: Where to Borrow Against Ripple in 2025 (https://lantern.finance/blog/xrp-loans-platforms-where-to-borrow-against-ripple-in-2025)

[5] MoreMarkets chooses Flare to power the future of XRP yield (https://flare.network/news/moremarkets-xrp-earn-account)