The XRP ecosystem is gaining momentum in decentralized finance as tokenization platform Midas, in partnership with Interop Labs and Axelar, launched the liquid staking token mXRP. This new product expands XRP’s utility, offering holders yields of up to 8% and unlocking fresh use cases in DeFi.
mXRP Launch Boosts XRP Utility
Midas announced that mXRP is issued on the XRPL EVM through audited smart contracts, with Axelar providing cross-chain bridging. This setup allows the liquid staking token to be used across more than 80 blockchains, greatly expanding its accessibility. Midas is handling the structuring and infrastructure behind mXRP, while Hyperithm provides risk curation services at launch.
The token works by allowing users to deposit XRP as collateral into a tokenized certificate structure. It is a structure that monitors performance in both on-chain and off-chain yield strategies. When minted, mXRP can be used within the DeFi protocols in lending, borrowing, or other integrations in the XRPL EVM ecosystem. It is anticipated that the annual yield will be 6 to 8 percent without fee, though the returns could change with time.
The announcement of the launch is just after the first XRP-backed stablecoin, which has already served to expand the presence of XRP in DeFi. Collectively, the developments are an indication of a significant push to add more utility and liquidity to one of the largest cryptocurrencies in market capitalization. By solving the past challenges of XRP to provide yield opportunities, mXRP will liberate its stagnant supply and initiate novel adoption of DeFi markets.
The first XRP-backed stablecoin comes to @FlareNetworks with @enosys_global Loans ☀️
→ Launching with FXRP and wFLR, then stXRP and other FAssets
→ Backed by Collateralized Debt Positions (CDPs) mechanism
→ @LiquityProtocol V2 friendly fork + Stability pools + FTSO-powered… pic.twitter.com/ehK8lbGuXl— Flare ☀️ (@FlareNetworks) September 19, 2025
Addressing XRP’s Idle Supply
Axelar emphasized that XRP is widely distributed with a lack of usage and native yield. A large portion of the XRP supply of $180 billion has been dormant over the years, which presents an unexploited potential in the ecosystem. Current yield products are not scalable or sustainable, making it difficult to use them on a larger scale.
The problem we're solving: XRP has distribution but no native yield and low utilization.
Most of XRP's $180B+ market cap sits idle. Existing yield options don't scale, lack sustainable APY and are not composable with DeFi.
mXRP will be liquid and scalable, with durable…
— Axelar Network (@axelar) September 22, 2025
mXRP is a liquid and scalable product, with the long-term goal of up to 10% APY. It will become a benchmark yield product in the XRP ecosystem owing to its design. According to Axelar, its composability with DeFi makes it more resilient compared to the old yield models. The delta-neutral strategies should be used by the trusted asset managers to achieve consistency in returns.
According to Midas CEO Dennis Dinkelmeyer, the product offers a clear channel through which XRP holders can access chances of using on-chain opportunities. Through high community demand and incorporation into decentralized finance protocols, mXRP has the potential to transform the way that XRP operates in the field of decentralized finance. If successful, it may transform XRP from a dormant asset into a productive foundation for the broader ecosystem.
