Some partners of the Ripple ecosystem have collaborated to launch a new yield-bearing product for the XRP Ledger’s (XRPL) native token; however, the effort has met mixed reactions from community members.
According to a blog post from blockchain developer Interop Labs, a partnership with the tokenization platform Midas gave birth to mXRP, which is described as a tokenized exposure product offering yield strategies for XRP holders.
New XRP Yield Product
mXRP will live on the decentralized interoperability and tokenization network, Axelar, which is founded by Interop Labs. Ripple Labs partnered with Axelar early last year to boost real-world asset (RWA) tokenization on the XRPL. Midas and Interop Labs unveiled mXRP on stage at the XRP Seoul 2025 conference held on September 21.
While on the Axelar network, mXRP will be issued on the new XRPL Ethereum Virtual Machine (EVM)-compatible network through audited smart contracts. Midas will provide the structuring and infrastructure behind mXRP.
When users deposit their XRP collateral into a tokenized certificate structure, they can mint mXRP. The new product can be deployed across decentralized finance (DeFi) protocols with additional opportunities. The aim is to channel dormant XRP supply into yield-bearing structures that could deliver substantial returns of up to 10% APY.
It is worth mentioning that Midas and Interop Labs are the only platforms creating new use cases for XRP. The DeFi interoperability platform, Flare, has been in the game for a while. Flare has an XRP yield-bearing structure and recently unveiled the first XRP-backed stablecoin loans.
Mixed Reactions
Although the latest development could unlock new use cases for XRP, not all community members have embraced it with open arms. Some insist that there is nothing wrong with other protocols creating new use cases for XRP, while others believe such moves are shifting the focus from the XRPL.
The pseudonymous XRPL validator and community contributor, Vet, tweeted that such initiatives are taking liquidity away from the XRPL to partner protocols. With other chains offering community yield on their holdings, XRP continues to move away from its core ecosystem.
“Are we ok with being the Bitcoin in DeFi?” they asked.
Vet believes the default setting should be focusing on attracting liquidity to XRPL first, as the chain is the OG decentralized exchange (DEX) and tokenization platform. Additionally, XRP will benefit from increased DEX activity, as it will become a bridge currency, allowing entities to scale on the network.
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