XRP’s DeFi Utility Sparks: mXRP Liquid Staking Vault Surpass $20 Million TVL
Introduction
DeFi is experiencing a renaissance in the XRP ecosystem as the launch of mXRP marks a turning point from dormant holdings to active yield generation.
As reported in late September 2025, the mXRP liquid staking vault surpassed 20 million dollars in total value locked (TVL). XRP holders are now seeking sustainable yields on one of cryptocurrency’s most established assets. The rapid adoption of mXRP and its growing TVL demonstrate the strong demand to develop DeFi tools beyond Ethereum-based ecosystems.
XRP’s move to compete with other usable assets in the broader multichain landscape is attracting increasing attention. This article explores how mXRP unlocks new utility for XRP, how it works, and what its rise means for the future of XRP staking and DeFi yield generation.
mXRP Gains Traction: Connecting XRP to Yield-Generating DeFi
XRP has long been recognized for its efficiency and speed in cross-border payments, yet it lacked comparable DeFi innovation to Ethereum or Solana. Despite having a market capitalization above 170 billion dollars, XRP had relatively few on-chain yield opportunities, leaving much of its supply idle.
That changed when mXRP was introduced as the first liquid staking token built natively for the XRPL ecosystem on September 22, 2025, during the XRPL Seoul Conference.
mXRP transforms traditional XRP staking into a liquid, composable asset. Users bridge their XRP to XRPL’s Ethereum Virtual Machine (EVM) sidechain via Axelar, then deposit it into tokenized vaults from Midas, a leading tokenization platform, in exchange for mXRP.
The wrapped mXRP accrues yield through diversified strategies across multiple networks targeting an annual percentage yield (APY) between 6 and 8 percent, with reports suggesting up to 10 percent depending on market conditions. Unlike traditional staking models that lock funds, mXRP remains fully tradable throughout the DeFi ecosystem. Users can lend, borrow, or provide liquidity while retaining liquidity flexibility.
Vault operations emphasize transparency and security, with deposits deployed by independent “risk curators” such as Hyperithm.
Rapid Growth: From 6.5 Million to 22 Million Market Cap in Days
The launch of mXRP has been an impressive success. On September 25, Axelar announced that the initial vault cap of 6.5 million XRP filled within two days, prompting an immediate increase to 10 million. By September 27, total value locked exceeded 22 million dollars, supported by XRP’s price around 2.80 dollars per token. This reflected genuine investor confidence rather than short-term hype.
This growth stems from XRP’s unique position as one of crypto’s oldest and most widely held assets, historically underutilized for yield. Community discussions on X (formerly Twitter) have been highly positive, describing mXRP as a “zero-risk” liquidity solution that combines LP fees with staking yields for compounding returns.
The token’s rise occurred organically without airdrops or point-based reward programs, validating real demand. Axelar co-founder Georgios Vlachos described it as “a gateway to on-chain finance” for the more than six million unique XRPL wallet holders.
By September 29, 2025, multichain integrations such as Strobe Finance helped double XRP’s TVL in three days from 1.9 million to 3.8 million dollars, while average yields increased from 0.4 percent to over 5 percent.
How the XRPL EVM Sidechain Powers mXRP Innovation
At the core of mXRP’s growth is the XRPL EVM sidechain, launched on mainnet in June 2023. XRPL’s architecture is designed for high-throughput and low-cost transactions. Integrating Ethereum smart contract compatibility allows users to transfer assets seamlessly across chains via Axelar’s bridge, connecting XRPL to more than 80 blockchains. The sidechain supports up to 1,000 transactions per second.
The mXRP sidechain issues ERC-20 compatible tokens and leverages XRPL’s efficiency to help developers port Ethereum dApps at minimal cost. Axelar’s General Message Passing (GMP) protocol enables secure, trustless communication between blockchains, allowing mXRP to interact with DeFi applications such as Anodos Finance, XPMarket, and Strobe Protocol for swaps, trading, and lending.
This interoperability is more than a technical milestone; it represents a transformation. As Axelar co-founder Sergey Gorbunov stated, it “liberates XRP and provides access to multichain liquidity pools and yield farming.” Early projections suggest total value locked across XRPL DeFi could exceed 120 million dollars within months.
Comprehensive Benefits: The Rise of XRP in the DeFi Space
The rise of mXRP signals a broader awakening for XRP’s utility in DeFi. Historically, XRPL’s TVL was negligible compared to Ethereum’s hundreds of billions, but innovations like mXRP are narrowing that gap by unlocking dormant capital.
At current metrics, mXRP generates roughly 2.8 million dollars in forward liquidity flow back into XRP pools annually, reinforcing a self-sustaining cycle of reinvestment and yield generation. This diversification allows holders to earn income without selling their assets, supported by growing regulatory clarity following the SEC settlement.
Institutions also benefit from this framework. Midas operates under a fully authorized EU regulatory structure, while Axelar continues building integrations with major financial players such as Deutsche Bank and J.P. Morgan, placing it at the forefront of real-world asset tokenization.
Community sentiment reflects excitement, with users describing mXRP as “XRP with a job” for transforming speculation into productive yield. Although challenges remain, such as smart contract risk and volatility, the project’s audited, non-custodial design with partners like flyer88 significantly reduces those concerns.
The Path Forward: mXRP as a Catalyst for XRPL’s DeFi Expansion
In the near future, mXRP could drive XRPL’s growth as a regulated, high-performance DeFi ecosystem. Features like permissioned domains and compliant decentralized exchanges will enhance liquidity and regulatory alignment, potentially routing billions of dollars in foreign exchange volume through XRPL.
Expanding to non-EVM assets such as DOGE through MoreMarkets could broaden adoption, while Axelar’s AVM will accelerate cross-chain programmability.
For XRP holders, the message is clear: mXRP represents both a product and a utility breakthrough. With TVL rising and compounded yields, the era of idle XRP is ending. As XRPL evolves, expect continued development that reinforces XRP’s position in the multichain economy.
The mXRP vault surpassing 20 million dollars showcases how specialized DeFi tools can revive legacy assets. Whether you are a long-term holder or a new participant seeking yield, this development marks a compelling entry point into XRP’s expanding DeFi ecosystem.
This article is contributed by an external writer: Linda Titianitus.
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