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Axelar and Midas Plans $700M Buying Pressure For XRP With mXRP

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The XRPL ecosystem may have received a significant boost in the shape of mXRP, a new product launched through a partnership between Axelar Network and Midas, a firm that builds real-world asset (RWA) products for decentralized finance protocols.

Announced on Monday, the mXRP token aims to provide a liquid staking option for XRP holders. Put more simply, users will be able to lock XRP to mint mXRP. The liquid staked version can, in turn, be used to access DeFi products on XRPL, or simply be held by users as a means to earn a yield of up to 10% APY on XRP.

However, there appears to be more to mXRP, as Axelar Network co-founder Georgios Vlachos revealed in a recent X space event held in conjunction with Midas. Precisely, Vlachos confirmed that mXRP could potentially create up to $700 million in annual buying pressure for XRP. The buying pressure could also persist indefinitely as demand for the newly launched product continues to increase.

In explaining how mXRP achieves the stated goal, Vlachos noted that the project would exist as a “decentralized entity that sources yield opportunities from other ecosystems (including the Ethereum, BNB Chain and Solana ecosystems).” This yield, denominated in dollars, would then be used to buy back XRP from the open market and redistributed back to mXRP holders.

How mXRP creates XRP buying pressure
Source (Georgios Vlachos on X)

Beyond the yield, users can use their mXRP assets as collateral across XRPL products and potentially 81 other chains connected via the Axelar Network. 

Axelar Aims for 5-10% of XRP Supply

Regarding its long-term objectives, Georgios Vlachos noted that the project aims to capture at least five to ten percent of the circulating XRP supply in the form of mXRP. Another possible metric would be to grow the project to $10 billion in assets under management (AUM). Such an outcome unlocks the value locked in the coins, thereby increasing liquidity for XRP holders.

Responding to a question regarding a potential holding period for mXRP, Vlachos clarified that there is no waiting period. Instead, users can mint and redeem coins at any time, or even sell on the open market. 

Initially, the product aims to gain traction with retail investors, with Dennis Dinkelmeyer of Midas explaining in detail how most DeFi adoption occurs from the bottom up. Nonetheless, the project has garnered some institutional interest and remains on track to onboard some participants in the near future.

It remains to be seen whether or not mXRP reaches its full potential. However, the XRP community appears excited about its prospects and the possibility of having a thriving decentralized finance (DeFi) ecosystem.

The post Axelar and Midas Plans $700M Buying Pressure For XRP With mXRP appeared first on Cointab.

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