XRP Liquid Staking: What mXRP Means for Holders

XRP has never offered native staking—a frequent sore point for holders who watched ETH and SOL earn on-chain rewards. That changed in spirit this fall, when tokenization project Midas and Interop Labs unveiled mXRP, a “liquid staking” token pitched as the first product of its kind tied directly to the XRP ecosystem, with targeted returns of 6%–8%. The launch was announced at XRPL Seoul 2025, and the token is minted on the XRPL EVM via audited contracts. In short, mXRP aims to turn dormant XRP into a yield-bearing asset that can also plug into DeFi.

What launched—and why it’s different from ETH-style staking

Per CoinDesk’s write-up, mXRP isn’t protocol staking in the Ethereum sense. Holders bridge XRP and receive a custodial wrapper issued by Midas, with routing handled by Axelar. That architecture unlocks yield opportunities, but it also introduces non-trivial risks—bridge, smart-contract, and counterparty risks—because you’re not delegating on a native PoS chain; you’re opting into a structured product. Expected returns are set at 6%–8% and fluctuate with strategy performance.

The distinction matters. XRP holders aren’t “securing the XRP Ledger” for in-protocol rewards; they’re exchanging XRP for a token designed to capture off-chain and on-chain yield strategies, with the convenience of staying liquid in DeFi. That’s why the team describes it as liquid staking for XRP, even though the underlying mechanics differ from classic staking on PoS networks. 

How mXRP works in practice

The flow is simple: deposit XRP, receive mXRP 1:1 on the XRPL EVM, and then deploy mXRP across DeFi—lending markets, market-making, and other integrations—so you can seek additional yield or liquidity while the base product targets its own return range. Early strategies highlighted by the team include market-making and liquidity provisioning, with a longer-term aim to connect XRP to cross-chain liquidity flows.

This “stay liquid while earning” model only works if there are places to use the token. Here, the XRPL’s growing DeFi stack helps: the ledger now features a built-in AMM (automated market maker) on its DEX, enabling pools where tokens can earn trading fees—an important primitive for any LST-style asset that needs utility beyond sitting in a wallet.

Who’s behind it—and why now?

Midas positions mXRP as a way to “activate” an XRP supply that has largely sat dormant for years. Interop Labs—the core development group behind Axelar—helps provide the interoperability rails. Together, the companies framed mXRP as the first liquid-staking product tied to XRP, native to the XRPL’s EVM environment, and designed to be composable with existing DeFi protocols from day one. The stated goal: funnel XRP into transparent, structured strategies with an on-chain wrapper instead of pushing users into opaque, off-platform yield products.

The promise: a DeFi on-ramp for XRP

For years, XRP’s strength was payments throughput and the XRPL’s built-in DEX, but it lagged rivals in DeFi composability and yield. If mXRP gains traction, it could become the token that lets XRP holders:

• Earn a base yield (targeted 6–8%, variable).
• Stay liquid for swaps, lending, and LP positions on the XRPL EVM.
• Plug into cross-chain routes via Axelar-connected venues.

CoinDesk’s coverage emphasizes this composability angle—mXRP is meant to drop neatly into existing DeFi blocks rather than invent an entirely separate ecosystem. For users, that means fewer hoops to jump through if they already use EVM-style tools.

Why this matters for XRP’s roadmap

The XRPL community has been pushing deeper into DeFi—rolling out infrastructure like the AMM and exploring EVM compatibility to lower the barrier for Solidity developers. By giving holders a reason to move XRP into on-chain strategies—and by keeping that exposure liquid—mXRP could catalyze volumes on the XRPL EVM side and attract new builders who want a ready user base. The launch narrative is explicit about connecting the ledger to broader liquidity rather than keeping it siloed.

Conclusion

mXRP is an ambitious bridge between XRP’s large holder base and the kind of yield-plus-liquidity experience that helped other ecosystems grow. The team behind it promises DeFi composability and targeted 6–8% returns, but makes clear that this is a custodial, bridged wrapper—not risk-free native staking. For XRP holders willing to do the homework on contracts, audits, and jurisdictional terms, it could be a compelling way to keep assets working on-chain. For the XRPL itself, it’s a real-world test of whether EVM compatibility and AMM plumbing can convert long-idle balances into active liquidity.