Ripple Explores XRPL Staking and Fed Payment Access to Boost XRP Utility

Sean Williams
Ripple XRP

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  • XRPL staking could enhance network security and reward long-term participants.
  • Ripple supports Fed proposal for direct crypto payment access to improve efficiency.
  • Both initiatives aim to strengthen XRP’s utility and competitiveness in the market.

Ripple is exploring new avenues to enhance the utility of its XRP Ledger (XRPL), including the potential introduction of staking and access to Federal Reserve payment rails. These developments could reshape incentives for token holders, strengthen network security, and improve stability for digital assets in the U.S.

Staking Could Strengthen XRPL Security

J. Ayo Akinyele, RippleX head of engineering, outlined the potential benefits of staking in a recent blog post. He emphasized that staking could promote long-term participation and enhance network security by rewarding users who help maintain consensus. However, implementing staking would require fundamental changes to XRPL’s architecture. Currently, transaction fees are burned to maintain a deflationary supply, and redirecting them as rewards would necessitate significant structural modifications.

Ripple CTO David Schwartz highlighted two theoretical approaches: a dual-layer consensus model with an incentivized inner layer of validators, and a system leveraging fees to fund zero-knowledge proof verification. Both approaches, while promising, are considered long-term possibilities due to their complexity and engineering demands.

Fed Proposal Could Transform Crypto Payment Systems

Separately, Ripple welcomed a proposal by Federal Reserve Governor Christopher Waller, suggesting that crypto firms gain access to “skinny” Fed accounts. Such access would allow stablecoin issuers and other digital asset companies to interact directly with the Fed’s payment system, bypassing traditional banks. Ripple’s Chief Legal Officer, Stu Alderoty, noted that this could accelerate settlements, reduce costs, and enhance the stability of its RLUSD stablecoin against competitors like Tether and Circle.

Also Read: Ripple CEO Celebrates as Canary XRP Spot ETF Hits $26M in 30 Minutes

The proposal signals a potentially more open regulatory stance toward decentralized finance, giving Ripple and other firms the ability to operate more efficiently within the U.S. financial system.

Looking Ahead for XRP and XRPL

While staking on XRPL remains a long-term vision, Ripple’s strategic focus on both network security and regulatory alignment highlights its commitment to evolving the ledger beyond cross-border payments. Direct access to Fed systems, combined with potential staking incentives, could position XRP as a more versatile and competitive digital asset.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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