• Midas launched mXRP to give XRP holders access to DeFi yields through a new liquid staking token.
• The mXRP token works across 80 blockchains and connects to XRPL through the Axelar Bridge.
• XRP holders can earn up to 8% APY by depositing collateral into a tokenized structure.

Midas has introduced mXRP, a liquid staking token, in partnership with Interop Labs and Axelar. This new product aims to enhance the utility of XRP within the decentralized finance (DeFi) ecosystem. Token holders can now access yields of up to 8% through the product. The launch follows the release of the first XRP-backed stablecoin. Both developments mark a shift in expanding XRP’s DeFi capabilities.

The mXRP token is built on the XRPL EVM sidechain. This sidechain is linked to the main XRP Ledger through the Axelar Bridge. Axelar enables cross-chain connectivity, allowing mXRP to operate across more than 80 blockchains. Midas manages the token’s structuring and infrastructure. Meanwhile, Axelar handles the bridging and cross-chain operations.

How the Token Works

To access yields, users deposit XRP collateral into a tokenized certificate structure. This structure tracks both on-chain and off-chain yield strategies. The token operates within audited smart contracts, providing transparency and security.

Hyperithm will oversee risk management for the token at launch. The token is also fully integrated into the XRPL EVM. Users can use it across multiple DeFi protocols. These include lending markets and other native applications. Midas estimates annual returns between 6% and 8%, based on past performance after fees. However, actual yields may fluctuate over time.

Aiming to Solve Utilization Gaps

According to Axelar, XRP has a wide distribution but limited native yield opportunities. Most of XRP’s market value remains inactive. Current yield options are not scalable or sustainable. They also lack compatibility with DeFi protocols. Ripple collaborated with Axelar last year to enhance XRP Ledger’s capabilities, bringing advanced DeFi features and cross-chain connectivity.

mXRP addresses these concerns. It offers a liquid, scalable option for yield generation. The token design supports composable DeFi use cases. It aims to establish a benchmark APY across the XRP ecosystem. Asset managers will deploy delta-neutral strategies to maintain yield stability.

Broader DeFi Integration

The mXRP token allows XRP holders to unlock more value from their holdings. With seamless integration across chains, users can access a wider range of opportunities. These include lending, borrowing, and other decentralized strategies. The token is positioned as a flexible asset for DeFi.

The launch signals a shift toward increased XRP participation in DeFi. Last week, XRP broke above its all-time high, with mixed RSI and MACD signals. It also showcases how traditional assets can evolve within decentralized frameworks. By offering a native yield product, Midas and its partners seek to improve XRP’s utility. This development opens the door to scalable, XRP-denominated financial strategies.