mXRP Elevates XRP from an Inactive Asset to a Leading DeFi Yield Generator

Midas along with

have introduced mXRP, the inaugural liquid staking token available on the Ledger (XRPL), giving XRP owners the chance to earn yields reaching 8% per year. Presented at XRPL Seoul 2025, this solution transforms inactive XRP into yield-generating assets by utilizing a tokenized certificate model, seamlessly integrating with XRPL’s Machine (EVM) sidechain and decentralized finance protocols. Developed through a partnership between real-world asset (RWA) platform Midas and Interop Labs, the project’s goal is to bring additional functionality to XRP by enabling both liquidity and participation in DeFi activities.

The mXRP token functions by letting individuals deposit XRP into verified smart contracts, where it is wrapped and transformed into mXRP tokens. These tokens, which mirror staked XRP, can be utilized across DeFi applications for activities such as providing liquidity and market-making, aiming for annual net returns between 6% and 8%. The generated yields come from third-party asset management, with Hyperithm initially overseeing risk. Dennis Dinkelmeyer, Midas’ co-founder and CEO, highlighted that mXRP addresses the longstanding underuse of XRP, converting it into a revenue-generating asset while preserving both its liquidity and adaptability.

Axelar, known for its cross-chain interoperability protocol, is instrumental in connecting XRP with the EVM sidechain, allowing for smooth interaction with DeFi tools based on Ethereum. Georgios Vlachos, Axelar’s co-founder, remarked that their platform acts as the “Gateway to Onchain Finance,” supporting new possibilities in tokenization and trading, and setting the stage for XRP to engage in high-level financial ecosystems. The token is designed with an emphasis on transparency through audited contracts and compliance, with Midas currently overseeing tokenized products whose total value locked (TVL) exceeds $1 billion.

This debut lines up with XRP’s market value sitting near $2.80 and a total market cap of $168 billion. Analysts observe that mXRP’s role in stimulating demand for XRP could affect its price movement, especially if liquid staking experiences widespread adoption. However, the token involves typical DeFi risks, such as vulnerabilities in smart contracts and issues related to bridge security. Early access has been granted to users in Europe and Asia, and further regional availability will depend on regulatory clearance.

The rollout of mXRP represents a significant evolution for the XRP community, shifting its primary identity from a payments token to an asset active in DeFi. By tapping into XRPL’s EVM-related features, mXRP connects XRP’s established role in global payments with the expanding world of DeFi, which may attract institutional investors interested in yield opportunities. RippleX, Ripple’s innovation division, has pointed to a bigger vision for institutional DeFi on XRPL, including compliance solutions and the integration of zero-knowledge proofs, aiming to position XRPL as a global settlement infrastructure.

Industry experts argue that mXRP’s future hinges on the strength of its liquidity, the breadth of its DeFi integrations, and the effectiveness of user education. While the projected 6-8% yield is competitive with other liquid staking options like stETH and mSOL, mXRP’s distinguishing feature is its EVM compatibility and the established reputation of XRP. Key challenges involve building confidence among XRP users new to DeFi and ensuring strong security across both bridges and smart contract systems.