U.S. XRP Investors Score Yield Play Via Uphold and Flare—Because Hodling Wasn’t Hard Enough

Yield-hungry crypto holders just got a new toy. Uphold and Flare team up to let XRP baggers earn passive income—finally putting those dormant tokens to work (or at least pretending to).

No more ‘wait for the pump’ despair. Now you can watch your XRP bleed slowly while earning a trickle of yield—Wall Street would call this ‘innovation.’

Flare’s smart contracts turn idle XRP into yield-generating assets. Uphold handles the custody—because trusting exchanges with your coins always ends well.

Bullish or desperate? Either way, it beats staring at a flatlining chart. Just don’t ask about the APY—this is crypto, after all.

XRP to Move Beyond a Hold-Only Asset

Traditionally, XRP has been seen as a transactional or long-term investment asset with no way to generate passive income. Unlike assets such as ethereum that allow for native staking due to their proof-of-stake (PoS) architecture, XRP operates on the XRP Ledger (XRPL), which uses a consensus protocol to validate transactions. This system, while fast and energy-efficient, does not support built-in staking.

However, that is beginning to change.

Uphold confirmed in a recent X post that it is working on a yield-generating solution for XRP holders. By partnering with Flare Network, a Layer-1 blockchain compatible with the Ethereum Virtual Machine (EVM), the exchange is leveraging Flare’s smart contract capabilities to introduce yield functionality for XRP.

How XRP Yield Will Work Through Flare

The partnership with Flare allows users to interact with XRP in a way that wasn’t previously possible. Flare supports a system known as FAssets, which enables non-smart contract tokens like XRP to be represented in a wrapped format for use in DeFi.

Here’s how it works:

This wrapped staking system is not native to the XRP Ledger itself but operates through Flare’s infrastructure, which opens XRP up to decentralized applications, yield farming, and more.

According to Uphold, this approach is a response to strong demand from its user base, especially those looking to earn returns on their idle XRP holdings. The company is currently testing the process and inviting the XRP community to prepare for the next phase in DeFi integration.

No Timeline Yet, But Beta Coming Soon

While no official date has been provided for the release of the beta or the full product, Uphold urged XRP holders to stay tuned for updates. The beta version will allow users to test the staking and yield process before the platform opens it more broadly.

Flare also issued a statement reinforcing its commitment to the partnership. It emphasized that its FAssets infrastructure is getting close to mainnet readiness and that this collaboration WOULD bring tangible DeFi utility to XRP users on Uphold.

“With FAssets preparing for mainnet, this collaboration paves the way for XRPFi, bringing utility and DeFi access to Uphold’s active XRP community,” Flare said.

Uphold’s Strong Support for XRP

Uphold has been one of the most consistent supporters of XRP, even during periods of regulatory pressure such as the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The exchange never delisted XRP and has frequently highlighted the token’s potential in its communications.

In addition to the new yield program, Uphold recently introduced another XRP-focused feature: Direct Salary Deposits with XRP rewards.

XRP Rewards on Salaries

On june 1, Uphold started a new program designed for U.S. users who choose to receive their paychecks directly into their Uphold accounts. Any user who deposits at least $250 of their salary will be eligible to receive a 4% reward in XRP.

This program is set to run from June 2, 2025, through September 1, 2025, and could appeal to users looking to combine traditional finance with cryptocurrency benefits. It’s another example of how Uphold continues to innovate around XRP and push for greater mainstream use.

A Game-Changer for XRP Holders

The upcoming ability to earn yield on XRP, even if indirectly through Flare’s DeFi system, could significantly alter how investors view the token. Instead of holding XRP and waiting for price appreciation, users will now have the chance to earn passive income. This makes XRP more competitive with other PoS-based cryptocurrencies in terms of functionality.

The MOVE could also help deepen XRP’s role within the broader DeFi ecosystem, which has largely excluded it due to technical limitations. Flare’s smart contract compatibility provides a bridge between XRP’s speed and scalability and the earning potential of DeFi.

Regulatory Considerations

It’s worth noting that yield-generating crypto products have come under scrutiny from regulators, especially in the United States. Any program that offers interest or yield on crypto holdings could be subject to oversight or restrictions depending on its structure. Uphold will likely need to ensure that its XRP yield offering complies with applicable laws.

For now, though, the XRP community is watching closely and appears excited about the potential. Many see this as the beginning of a new era where XRP becomes more than just a cross-border payment token—it could become a yield-bearing financial instrument.

Final Thoughts

The initiative by Uphold and Flare marks a turning point for XRP, offering it access to smart contracts and DeFi applications that were previously out of reach. While the program is still in its early stages, the implications are significant. It’s not just about earning yield—it’s about evolving the role of XRP within the crypto economy.

If successful, this could serve as a blueprint for how other non-staking assets might be brought into the DeFi world. For XRP holders, the future may include not just holding, but earning.