The world of cryptocurrency is evolving rapidly, and with innovation comes new opportunities for passive income. For long-time holders of XRP, one of the most prominent digital assets by market capitalization, a major breakthrough has arrived: the ability to earn yield on their holdings. Thanks to a strategic partnership between Uphold and the Flare Network, XRP holders can now step into the decentralized finance (DeFi) ecosystem and unlock earning potential previously unavailable due to technical limitations of the XRP Ledger.
This collaboration marks a pivotal moment in expanding XRPFi—a term emerging to describe XRP-based financial services—and brings DeFi capabilities directly to Uphold’s large user base. Let’s explore how this works, why it matters, and what it means for the future of XRP utility.
How XRP Staking Works via Flare Network
Unlike proof-of-stake blockchains such as Ethereum or Solana, the XRP Ledger does not support native staking. It operates using a unique consensus algorithm that prioritizes speed and energy efficiency but excludes traditional staking mechanisms. As a result, XRP holders have historically been unable to earn rewards simply by holding or locking their tokens.
Enter Flare Network, an EVM-compatible blockchain designed to extend smart contract functionality to non-Turing-complete ledgers like XRP’s. Flare introduces FAssets—faithfully mirrored versions of external assets that can be used within its DeFi ecosystem. When users deposit XRP into Flare’s system, they receive FXRP, a 1:1 representation of XRP that functions natively on Flare.
👉 Discover how you can start earning yield on XRP through innovative blockchain integration.
With FXRP in hand, users can participate in staking, liquidity provision, lending, and other yield-generating activities. Uphold is leveraging this technology to allow its users to stake their XRP indirectly—without needing to manage wallets or interact directly with decentralized applications (dApps). The exchange will handle the bridging and staking process seamlessly behind the scenes.
“With FAssets preparing for mainnet launch, this collaboration paves the way for XRPFi, bringing utility & DeFi access to Uphold’s active XRP community,” said Flare Network in a recent statement.
This integration opens the door not just for passive income, but for broader financial innovation around XRP—including yield farming, synthetic assets, and cross-chain interoperability.
Why This Partnership Matters for XRP Holders
For years, critics have pointed out that XRP lacks yield-generating use cases compared to other top-tier cryptocurrencies. While assets like ETH or SOL offer staking rewards, governance rights, or liquidity mining incentives, XRP has primarily served as a medium of exchange and liquidity tool—especially in cross-border payments facilitated by Ripple.
Now, with Flare-powered FXRP staking accessible through Uphold, XRP holders gain a powerful new utility:
- Passive Income Generation: Users can earn yield on otherwise idle holdings.
- Simplified Access: No need for technical know-how; everything happens within Uphold’s trusted interface.
- DeFi On-Ramp: A gateway to explore decentralized finance without leaving a regulated exchange environment.
Moreover, this move signals growing institutional recognition of Flare’s infrastructure and its role in extending smart contract capabilities to established networks like XRP Ledger.
Uphold Expands U.S. Crypto Services
Beyond XRP yield opportunities, Uphold is making significant strides in enhancing its overall service offerings—particularly in the United States market.
In March, Uphold officially relaunched staking services for U.S. customers, supporting 19 different cryptocurrencies including Ethereum (ETH), Solana (SOL), and NEAR Protocol (NEAR). This move reflects a broader trend among crypto platforms seeking to regain trust and expand compliant product lines amid evolving regulatory landscapes.
Additionally, Uphold has reintroduced its crypto debit card in the U.S., following successful adoption in the UK. The card—available in both digital and physical formats—enables users to spend their crypto holdings instantly at merchants worldwide, converting digital assets into fiat currency at the point of sale.
But perhaps one of the most compelling new features is Direct Salary Deposit, which allows U.S.-based users to set up recurring deposits of their paycheck directly into Uphold. What sets this apart?
- Earn 4% cashback in XRP on salary deposits—the first offering of its kind.
- Receive up to 5% rewards in RLUSD, a U.S. dollar-pegged stablecoin issued by Ripple.
These incentives not only promote long-term holding (hodling) behavior but also deepen user engagement with both native tokens and real-world financial workflows.
👉 Learn how modern crypto platforms are turning everyday transactions into earning opportunities.
Frequently Asked Questions (FAQ)
Can I stake XRP directly on the XRP Ledger?
No. The XRP Ledger uses a consensus protocol called the Ripple Protocol Consensus Algorithm (RPCA), which does not support native staking. However, you can earn yield indirectly through wrapped versions like FXRP on compatible blockchains such as Flare.
What is FXRP and how is it different from XRP?
FXRP is a tokenized version of XRP created on the Flare Network through its FAssets system. It maintains a 1:1 peg with XRP and enables smart contract functionality, allowing it to be used in DeFi applications like staking and lending.
Is staking XRP through Uphold safe?
Yes. Uphold is a regulated financial platform with strong security measures. By partnering with Flare—a well-audited and decentralized network—the risk is minimized. However, always consider counterparty and smart contract risks inherent in any DeFi-related product.
When will XRP staking be available on Uphold?
There is no official launch date yet. Uphold has announced plans for a beta release, allowing select users to test the feature before full rollout. Interested users should monitor Uphold’s official channels for updates.
Does earning yield on XRP require me to leave the Uphold app?
No. One of the key advantages of this integration is that the entire process—from depositing XRP to receiving yield—is handled within Uphold’s platform. You won’t need to bridge assets manually or interact with external wallets or dApps.
What are RLUSD rewards?
RLUSD is a stablecoin issued by Ripple that is pegged 1:1 to the U.S. dollar. Uphold offers up to 5% annual rewards on RLUSD balances as part of its incentive program for salary deposits and long-term holdings.
The Road Ahead for XRPFi
The convergence of centralized platforms like Uphold with decentralized protocols like Flare represents a new phase in crypto adoption—one where ease of use meets advanced financial functionality. By enabling XRP yield generation, this partnership doesn’t just add another feature; it redefines what it means to hold XRP.
As more users discover ways to generate returns from their digital assets—even those not originally built for staking—the line between traditional finance and decentralized ecosystems continues to blur.
Whether you're a long-term believer in XRP’s payment infrastructure or a yield-focused investor exploring new opportunities, this development offers something valuable: utility, accessibility, and growth potential.
With core keywords such as XRP yield, Flare Network, FXRP staking, Uphold crypto, XRPFi, FAssets, XRP staking, and DeFi for XRP naturally integrated throughout, this article aligns with high-intent search queries while delivering actionable insights and forward-looking context.