Ripple Explores Integrating XRP into DeFi Through Staking on XRP Ledger

Ripple is considering 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 the utility of XRP and reshape incentives among validators and token holders.

Ripple Says XRPL Staking Would Strengthen Security

Akinyele said the idea emerged naturally as new capabilities were rolled out within 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 architecture. XRPL currently burns transaction fees to maintain a deflationary supply, and redistributing them in the form of rewards would require an overhaul of core systems.

The XRP Ledger was initially designed for efficient value transfer, particularly for cross-border payments, its primary 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 could help the network stay competitive.

However, XRPL’s evolution toward a rewards-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 to introducing staking into XRPL.

The first is a two-tier consensus model, comprising an incentivized “inner” layer of approximately 16 validators chosen by the broader set of validators based on their stakes.

This internal group would advance the ledger using reduction and staking mechanisms, while the “external” layer would maintain governance and monitor the system.

The second approach would preserve the current XRPL consensus while using fees to fund zero-knowledge proof (ZKP) verification. ZKPs allow participants to prove facts without revealing information, which helps validate participation by minimizing trust.

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

Ripple welcomes Fed proposal giving crypto companies access to payment rails

Earlier this month, Ripple 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 companies should be able to directly access the Fed’s payment systems, reducing reliance on traditional banks that are often reluctant to serve the sector.

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

Ripple, which previously requested a master account from the Fed to support its RLUSD stablecoin, views the idea as transformative.

Alderoty told Reuters the proposal could speed settlement, reduce 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 repayment capacity, allowing companies to quickly move from U.S. Treasuries to dollars without banking intermediaries.

The post Ripple Explores Bringing XRP to DeFi via Staking on XRP Ledger appeared first on Cryptonews.

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