Ripple Explores Bringing XRP to DeFi Through Staking on XRP Ledger

Ripple is weighing whether to bring staking to the XRP Ledger (XRPL), a move that would push the decade-old blockchain deeper into the rapidly expanding world of decentralized finance.

The discussion began after J. Ayo Akinyele, head of engineering at RippleX, published a blog post exploring how staking could expand XRP’s utility and reshape incentives among validators and token holders.

Ripple Says XRPL Staking Would Boost Security

Akinyele said the idea naturally emerged as new capabilities roll out across XRPL.

Staking, he argued, could encourage “long-term participation” and strengthen network security by rewarding those who help maintain consensus.

However, enabling staking would require fundamental changes to the ledger’s architecture. The XRPL currently burns transaction fees to maintain a deflationary supply, and redistributing them as rewards would demand a rework of core systems.

The XRP Ledger was originally designed for efficient value transfer, particularly for cross-border payments, its main use case for years.

As XRP gains traction among corporate treasuries and appears in exchange-traded products, Ripple is considering how new features like staking might help the network stay competitive.

However, shifting XRPL toward a reward-driven system raises questions about its underlying principles, including its Proof of Association model, which prioritizes trust over economic incentives.

Ripple CTO David Schwartz added nuance to the debate, outlining two theoretical paths for bringing staking to XRPL.

The first is a dual-layer consensus model, including an incentivized “inner” layer of about 16 validators chosen by the broader validator set based on stake.

This inner group would advance the ledger using slashing and staking mechanisms, while the “outer” layer would maintain governance and monitor the system.

The second approach would preserve XRPL’s current consensus while using fees to fund zero-knowledge proof (ZKP) verification. ZKPs allow participants to prove facts without revealing information, enabling a trust-minimized way to validate participation.

Schwartz cautioned that both concepts, while promising, remain distant. The level of engineering effort, risk and structural change required means staking is unlikely to arrive on XRPL anytime soon.

Ripple Welcomes Fed Proposal Giving Crypto Firms Access to Payment Rails

Earlier this month, Ripple’s chief legal officer, Stu Alderoty, said a proposal from Federal Reserve Governor Christopher Waller to allow crypto companies access to “skinny” Fed accounts could reshape the US digital asset landscape.

Waller argued that stablecoin issuers and other crypto firms should be able to tap directly into the Fed’s payment systems, reducing reliance on traditional banks that often hesitate to serve the sector.

He urged regulators to “embrace the disruption — don’t avoid it,” signaling a more open stance toward decentralized finance.

Ripple, which previously applied for a Fed master account to support its RLUSD stablecoin, sees the idea as transformative.

Alderoty told Reuters the proposal could speed up settlement, lower costs and help RLUSD gain traction in a competitive stablecoin market dominated by Tether and Circle.

He added that having direct access to the Fed would improve stability and redeemability, enabling firms to move quickly between U.S. Treasuries and dollars without banking middlemen.

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