Uphold to launch XRP staking on Flare Network

Uphold stated it is seeking options to earn a yield on $XRP. They are experimenting with XRP staking via Flare Networks.

The company shared an X post: “Welcome to smart contracts and DeFi opportunities, #XRPArmy. The company then asked its users to “Stay tuned for the beta.”

Uphold intends to take root in the US in following Trump’s pro-crypto stance 

In the last quarter of 2023, Uphold released Vault, a self-custodianship wallet that the company says empowers user to have more ownership of their digital assets. The wallet launched initially with XRP as an option, in keeping with Uphold’s existing dedication to the token.

The company has also highlighted the Flare Network (an EVM-compatible Layer 1 blockchain emphasizing cross-chain interoperability). The recent release of USDT₀, an omnichain variant of Tether’s USDT on Flare, has massively increased the network’s TVL, indicating surging demand for cross-chain DeFi utility.

Uphold is further expanding its users’ functionality with the re-launch of its crypto debit card, which is available in the UK and US. It plans to extend the offering to other countries soon. The card (available in a virtual and physical version) offers people a way to spend digital currencies directly from their wallets and thus use crypto more as everyday money.

The company’s broader push into the US market reflects a wider trend among crypto firms looking to capitalize on a more favorable regulatory climate under President Donald Trump’s administration. Uphold appears keen to position itself at the forefront of this shift.

In March, Uphold reinstated staking rewards for US customers on 19 digital assets such as Ethereum, Solana, and NEAR.

Concerning this, Uphold CEO Simon McLoughlin highlighted that staking is important in how blockchain works and the online economy. Based on his argument, users should be able to back this activity and earn rewards. He further stated that with the new focus on blockchain in the US, they are excited to provide staking services to their customers in the US once more.

Building on that momentum, Uphold announced on May 30 that it will soon offer direct deposits with integrated rewards for US users. This feature includes a “Direct Salary Deposit” option, paired with the industry’s first 4% XRP-back reward. Additionally, users can earn 5% rewards on RLUSD, Ripple’s new USD-backed stablecoin.

Through a mix of DeFi integrations, payment tools, and rewards, Uphold is aggressively expanding its footprint in the US while bringing greater utility to XRP and other digital assets.

Uphold disabled staking amid regulatory uncertainties 

As of 2023, Uphold did not offer staking services in the US due to regulatory uncertainty surrounding crypto staking. According to an SEC complaint, many staking firms failed to provide adequate information to clients, particularly regarding how they secured staked assets.

The SEC also considered whether staking services could be considered unregistered securities offerings. Accordingly, many companies were forced to cease or limit their staking activities in the United States.

One prime instance of this regulatory force was the SEC’s $30 million settlement with Kraken, one of the largest crypto exchanges, for unauthorized staking services. This high-profile case was a cautionary tale to the whole industry. It might have factored in Uphold’s decision to pause their staking offerings, shedding some light on why many companies still hesitate to offer staking services.

Uphold’s recent consideration to take root in the US in the staking sector marks a significant milestone in the crypto community. This is because as investors earn passive income through staking, liquidity, and stability will be achieved, thus representing a giant bet on cryptocurrencies.

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