Uphold launches XRP staking tests via Flare FAssets, paving the way for yield and DeFi access for XRP holders. This promises the possibility to transfer non-smart-contract-native assets into the ecosystem of EVM-compatible DeFi protocols.
Uphold Initiative for XRP Holders
Let’s look a bit deeper into why this matters. For a long time, one of Ethereum’s key advantages was the ability to staking, which made the EVM ecosystem incredibly functional and in high demand among certain crypto investors looking for passive income.
Other ecosystems didn’t always offer such capabilities, and even when they did, the EVM ecosystem and its functionality remained far ahead. Besides, not everyone is interested in trading crypto directly. That’s understandable – lower profit, but also lower risk and time commitment.
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Back to XRP – there’s strong demand in DeFi for XRP holders to access similar staking features, and it seems Uphold is working to implement this on their end. To do so, they plan to use the FAssets infrastructure from Flare Networks, which provides a mechanism for wrapping the native token (in this case, XRP), making it available on Flare for interaction with smart contracts.
But let’s take it a step further – this means that XRP can potentially be used not only for staking but also across a broader range of dApps without requiring any modifications to the native XRP Ledger architecture. And that is a direct path to ecosystem expansion, which always represents a major strategic advantage.
Conclusion
It could be said that a mutually beneficial setup is potentially emerging. Uphold meets user demand, and XRP gains a path to expanded use cases and ecosystem growth – all without changes to its underlying architecture. Whether the testing proves successful, and how fast the growth may be if it is – these are things we’ll assess based on the initial results.
