XRP’s DeFi Utility Expands With Launch of Liquid Staking Token ‘mXRP’

Tokenization platform Midas has partnered with Interop Labs and Axelar to launch the liquid staking token ‘mXRP’, which expands XRP’s DeFi utility and offers token holders yields of up to 8%. This development follows the launch of the first XRP-backed stablecoin, which has also helped boost the altcoin’s utility.

mXRP Launches on Axelar, Boosting XRP’s Utility

In a press release, Midas announced the launch of the liquid staking token on Axelar, which it described as a first-of-its-kind tokenized exposure product “offering meaningful, XRP-denominated yield strategies.”

The tokenization platform revealed that they issued mXRP token on the new XRPL EVM through audited smart contracts. As CoinGape reported earlier, the XRP Ledger EVM sidechain is connected to the XRPL through an Axelar Bridge.

Midas will provide the structuring and infrastructure behind the liquid staking token. Meanwhile, Axelar helps bridge the XRP asset into the protocol. The network will also enable the tokenization of this XRP product across over 80 blockchains, which Midas noted makes it the ideal platform to broaden access to this token.

The mXRP launch follows the launch of the first XRP-backed stablecoin, which has also helped to boost the altcoin’s use case in the DeFi space. As to how this XRP product will work, Midas stated that by minting the product, users will deposit XRP collateral into a tokenized certificate structure that tracks the performance of underlying on-chain and off-chain yield strategies.

Hyperithm will help provide risk curation services for the liquid staking token at launch. Meanwhile, the tokenization platform noted that they have fully integrated the token within the XRPL EVM ecosystem and that users can deploy it across DeFi protocols to access other opportunities, including lending markets and native integrations.

Midas stated that the targeted net return range for the mXRP token is currently between 6% 8% annual percentage yield (APY) based on historical performance and net of fees. Meanwhile, the yield offering may vary over time.

The Need For This Offering

In an X post, the Axelar network explained that XRP has distribution but no native yield and low utilization, which is the problem they are looking to solve. The network further noted that most of XRP’s $180 billion market sits idle and that existing yields don’t scale, lack sustainable APY, and are not composable with DeFi.

Axelar stated that the MXRP token will be liquid and scalable, with durable XRP-denominated yield targeting up to 10% APY. Meanwhile, thanks to the product’s “unique design,” the network projects that it will become a superset of all existing yield products. Additionally, the aim is to establish it as the benchmark APY for the entire XRP ecosystem through its trusted asset managers, who deploy delta-neutral strategies.

Midas CEO Dennis Dinkelmeyer said, “Much of the XRP supply has been dormant for years; mXRP provides a transparent mechanism for users to access on-chain strategies. With strong community demand and DeFi integrations, we believe mXRP can play a key role in unlocking new use cases for XRP.”