The XRP Ledger (XRPL) ecosystem has taken a significant step forward with the launch of mXRP, the first liquid staking token designed to allow XRP holders to earn passive yield while maintaining liquidity. This innovation addresses a long-standing limitation of the XRPL, which, due to its non-Proof-of-Stake consensus mechanism, has not offered native staking rewards.
mXRP is a derivative token minted 1:1 against deposited XRP on the XRPL EVM, an Ethereum-compatible sidechain. It was developed through a collaboration between Midas Crypto, Axelar Network, and Interop Labs. Unlike locked staking, mXRP tokens remain fully liquid and can be traded, transferred, or used within decentralized finance (DeFi) applications while accruing a target annual percentage yield (APY) of 6–8%, with some frameworks suggesting potential returns up to 10%.
The process for users involves bridging XRP from the main XRPL to the XRPL EVM sidechain via the Axelar bridge, depositing it into a smart contract to mint mXRP, and then holding the token to earn yield. The yield is generated through professional on-chain and off-chain strategies, including market-making, liquidity provision, and algorithmic trading. Holders can redeem their mXRP at any time to reclaim the underlying XRP plus accrued earnings.
Concurrently, the broader XRP market is showing signs of activity, with the token's price up approximately 24% since the start of 2026. This context has heightened investor interest in yield-generating solutions. Platforms like SolStaking are being promoted as complementary tools, offering rule-based, fixed-term yield contracts denominated in USD for various assets including XRP, BTC, ETH, and SOL. SolStaking integrates real-world asset (RWA) yield streams and emphasizes institutional-grade security, including custody insurance through Lloyd's of London.
While mXRP unlocks new utility for idle XRP capital, it carries inherent risks typical of DeFi, including bridge vulnerabilities, smart contract exploits, yield variability, and regulatory uncertainty. Investors are advised to conduct thorough due diligence.
