Ripple Explores Introduction of XRP into DeFi through Staking on XRP Ledger
Ripple is considering a significant move that could push the XRP Ledger (XRPL) deeper into the rapidly growing world of decentralized finance (DeFi). The company is exploring the possibility of introducing staking on the XRPL, a move that would increase the security and long-term stake of the blockchain. According to Ripple CTO David Schwartz, two possible staking models are being considered, although both are still in the theoretical stages.
Ripple’s Staking Models
The discussion around staking on XRPL began after J. Ayo Akinyele, chief technical officer at RippleX, published a blog post exploring how staking could expand the utility of XRP and reshape incentives for validators and token holders. Akinyele argued that staking could encourage “long-term participation” and strengthen network security by rewarding those who help maintain consensus. However, making staking possible would require fundamental changes to the ledger’s architecture, including the redistribution of transaction fees as rewards.
Ripple CTO David Schwartz outlined two possible staking models, including a two-layer consensus model and a model that preserves XRPL’s current consensus while using fees to fund zero-knowledge proof verification (ZKP). Schwartz warned that both concepts are still in the early stages and would require significant technical effort, risk, and structural changes, making staking on XRPL unlikely to happen anytime soon.
Ripple’s Views on Fed Proposal
Ripple has also welcomed a proposal from Federal Reserve Governor Christopher Waller to allow crypto companies access to “thin” Fed accounts, which could reshape the U.S. digital asset landscape. The proposal would enable stablecoin issuers and other crypto firms to directly access the Fed’s payment systems, reducing reliance on traditional banks. Ripple Chief Legal Officer Stu Alderoty believes that the proposal could speed up settlements, reduce costs, and help Ripple’s RLUSD stablecoin gain a foothold in a competitive market.
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