Cryptocurrency exchange Uphold, which has over 10 million users, has announced options for staking XRP for users to earn rewards.
Introduction to XRP Staking
Uphold is actively exploring ways that enable users to stake XRP. Uphold CEO Simon McLoughlin indicated that XRP staking seems both feasible and promising, but poses challenges as 'XRP isn't a proof-of-stake network.'
Utilizing the Flare Network
To implement this, Uphold is considering the use of the Flare Network, a DeFi platform that supports wrapped tokens. Flare allows users to create a version of XRP called FXRP, which can be utilized within its network.
Plans and Potential Challenges
If a user chooses to stake their XRP, Uphold would freeze the actual XRP in its reserve and mint FXRP on the Flare network. McLoughlin also mentioned that a beta test for XRP staking is now viable due to growing liquidity on Flare, although it may face complexities in the U.S.
Uphold continues to explore XRP staking opportunities, engaging users with new earning potentials through DeFi solutions and wrapped tokens.
