Investors May Soon Earn 4–7% Annual Yield on XRP Holdings

EVM-based protocol Flare is working with Firelight to provide XRP holders with up to 7% yield on their idle holdings.

This was revealed in a recent interview with Scott Melker, the Wolf of All Streets. Notably, Melker spoke with Hugo Philion, co-founder and CEO of Flare Labs, and Jesus Rodriguez, co-founder and CTO of Sentora, who is leading Firelight

Specifically, both projects are working together to introduce decentralized finance products that can finally give XRP holders access to lending, borrowing, and yield opportunities.

The Flare Labs CEO said this approach allows people to turn a static asset into one that creates returns while also presenting exposure to different risks.

He also emphasized that Flare designed its system to avoid custodial risks. Through FXRP, the wrapped version of XRP on Flare, users can move tokens without relying on third parties

Moreover, validators secure the network collectively, which Philion argued makes the bridge highly decentralized. Although he admitted that many retail investors may still access yield through custodial exchanges, he stressed that Flare itself remains non-custodial.

Speaking further, Melker later asked about potential yields. Replying, Rodriguez revealed that tests show XRP could deliver annual returns in the 4% to 7% range

He believes the numbers are impressive, especially for an asset that has never offered yield and has long carried a zero cost of capital. Rodriguez also highlighted the idea of using restaking to create more advanced DeFi products, leading to deeper financial uses for XRP.

XRP Community Reacts

Interestingly, the interview drew comments from the XRP community. Brad Kimes from Digital Perspectives claimed that with this product, XRP holders may soon see the biggest release of idle liquidity in crypto.

He compared it to unlocking a bond-like income stream from an asset that has historically sat without generating yield. Kimes described the development as a major milestone that could change how people use XRP.

In addition, attorney Bill Morgan also praised the proposal, noting that returns of 4% to 7% would be a welcome addition for long-term holders who currently gain nothing from their tokens.

However, Vet, a validator on the XRP Ledger’s dUNL, argued that the risk didn’t match the reward. He said that putting a volatile asset like XRP into yield strategies for only 7% doesn’t justify the exposure to third parties. He claimed that DeFi needs to move beyond short-term yield plays and gambling-style speculation.