Midas and Axelar launch mXRP, a tokenized XRP product, targeting up to 8% base yield

Tokenization platform Midas has partnered with Interop Labs, developer of the blockchain interoperability protocol Axelar, to launch mXRP — a tokenized XRP product they describe as the first of its kind.

The product is currently targeting a base yield of 6-8%, paid out in XRP. Users can mint mXRP by depositing XRP collateral into a tokenized structure that tracks the performance of underlying yield strategies. These strategies, which may include market-making and liquidity provision, are managed by third-party asset managers known as “risk curators.” Dennis Dinkelmeyer, co-founder and CEO of Midas, told The Block that Hyperithm is serving as the curator for mXRP.

Beyond its base yield, mXRP can also be deployed across DeFi protocols to generate additional returns. “Much of the XRP supply has been dormant for years; mXRP provides a transparent mechanism for users to access onchain strategies,” Dinkelmeyer said. “With strong community demand and DeFi integrations, we believe mXRP can play a key role in unlocking new use cases for XRP.”

The mXRP token is issued on the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain and runs on infrastructure provided by Axelar.

Georgios Vlachos, co-founder of the Axelar protocol and director at the Axelar Foundation, told The Block that Axelar is enabling smart contracts on XRPL and is the interoperability provider for XRPL EVM, where the gas token (required to mint mXRP) is Axelar-bridged XRP.

“Axelar will bridge mXRP to every major ecosystem where there will be DeFi opportunities for users to deposit mXRP and earn additional yield, on top of mXRP’s base yield,” Vlachos said. “By aggregating yield from all available sources, mXRP will always be the highest yielding XRP product on the market.”

'Perpetual buyer' of XRP

Vlachos said the yield structure makes mXRP a “perpetual buyer” of XRP. Yield generated from strategies is used to purchase additional XRP, which is then distributed to mXRP holders.

As an example, he said that if mXRP assets under management grow to $10 billion by June 2026, it could generate $700 million in annual revenue at a 7% yield, creating $700 million in annual buying pressure for XRP.

“The expectation is that users will be able to earn more than 10% (7% base yield plus an additional 3% through mXRP DeFi opportunities) if they decide to deploy mXRP in DeFi instead of just holding it,” he added.

The launch of mXRP comes as more XRP-focused yield products enter the market. Flare and MoreMarkets recently introduced an “onchain XRP yield account,” while Bitrue and Doppler Finance announced an “XRP earn” product. Dinkelmeyer said mXRP differs because “earn” products function like savings or lending accounts, whereas mXRP is a transferable ERC-20 token compatible with DeFi. “That composability gives mXRP real utility beyond just holding it,” he said.

Vlachos added that mXRP is set to “kickstart” DeFi activity on XRPL, where current lending yields remain low. “Right now DeFi apps on XRPL (like Strobe Finance) provide extremely low yields for lending out XRP (<1%). Post mXRP launch, the APY for providing XRP liquidity on Strobe will surpass 5%. The same will happen across all of XRPL DeFi,” Vlachos said.

Midas-issued tokens, including mXRP, are not available to users in the U.S., U.K., or sanctioned jurisdictions, with access restricted in those regions. Midas has over $1.2 billion in total value locked (TVL) across its tokenized products, according to its website.

Axelar’s token AXL is currently the 262nd largest cryptocurrency with a market cap of over $303 million. It is trading at about $0.29, down nearly 10% in the past 24 hours, according to The Block’s AXL price page.