Ripple CTO Emeritus David Schwartz has revived a long-running discussion about XRP staking after a 2025 XRP Apex exchange resurfaced this month. Responding to a question about whether XRP holders could stake tokens directly on the XRP Ledger and earn a share of transaction fees, Schwartz countered with a banking metaphor: “Do you want to be your own bank or do you want someone else to pay you to be their bank?”
The comment reignited community debate because it cut to the core of XRP’s design. The XRP Ledger does not offer native staking, unlike proof‑of‑stake networks such as Ethereum. Instead, it relies on a consensus model often described as Proof of Association, where trusted validators maintain network integrity without receiving token rewards. Validators participate to support the network’s long‑term health, not for yield.
Schwartz’s analogy underscored the custody trade‑off: holding XRP in a personal wallet preserves direct control, while delegated staking programs typically require users to hand over control to a third party. He did not elaborate, but the statement was widely interpreted as a reminder that passive returns often come with extra trust requirements.
Technical barriers further complicate native staking. XRPL transaction fees are burned—a deliberate deflationary mechanism that discourages spam and keeps the network efficient. Redirecting those fees to staking rewards would necessitate fundamental changes to fee distribution, monetary design, and validator incentives, touching the ledger’s core architecture.
Nevertheless, XRP holders already access yield through external platforms. Exchanges and DeFi protocols like Uphold, Flare, Doppler Finance, and Axelar offer yield-bearing products that keep XRP connected to wider digital‑asset ecosystems. Yet these involve platform‑specific risks and varying custody assumptions, which Schwartz’s bank comparison neatly captured.
The resurfaced discussion highlights the community’s persistent interest in passive income, even as it forces a deeper question: whether chasing yield would strengthen the XRP Ledger or dilute the design philosophy that has long set it apart.
