Bitwise CIO: XRP Improving Value Capture With Staking Discussions

TLDR

• Bitwise CIO Matt Hougan said that XRP is becoming better at capturing value for its holders.
• The XRP community has started active discussions around adding native staking to the XRP Ledger.
• RippleX engineers and the Ripple CTO are exploring models for how staking could work on XRPL.
• Ripple’s CEO has encouraged the community to engage in the staking discussions.
• XRP holders currently rely on external platforms like Flare Network to earn yield on their tokens.

Matt Hougan, CIO at Bitwise, has highlighted XRP’s evolving approach to value capture as industry trends shift. He pointed to growing discussions about native staking as evidence that XRP is adapting to meet holder expectations. Hougan stated that investors often overlook such updates during volatile market conditions.

XRP Community Explores Native Staking

The XRP community has recently increased efforts to explore native staking on the XRP Ledger (XRPL). The XRPL currently uses the XRP Ledger Consensus Protocol, which relies on trusted validators. Therefore, XRP holders do not earn rewards for network participation.

RippleX head of engineering Ayo Akinyele raised the topic of native staking in a public thread on X. He stated that XRP now powers tokenized asset settlements and cross-market liquidity. For that reason, he argued that it is time to revisit XRPL’s economic structure.

Akinyele also revealed that he and Ripple CTO David Schwartz are reviewing models for native staking. Both are exploring how a reward system could work on the network. Since XRPL burns fees, they must design a sustainable reward mechanism.

Ripple CEO Brad Garlinghouse has encouraged community members to join these ongoing discussions. He acknowledged the potential value that staking could unlock for XRP holders. The push for change has already seen responses across XRP-focused developer communities.

Bitwise CIO Backs XRP’s Evolution

Hougan emphasized that leading networks are improving their value-capture systems, and XRP is now following this path. “This shift is one of the most important in crypto today,” Hougan said in an X thread. He believes such developments can support long-term token value.

According to Hougan, XRP’s potential inclusion of staking shows it is no longer just a value transfer token. Instead, it is entering a phase of economic innovation. This aligns with growing trends across other blockchain ecosystems.

The Bitwise CIO stated that stronger value mechanisms benefit holders over time. He said XRP’s shift is part of a broader movement across the crypto landscape. Hougan emphasized that this could change how users interact with the asset.

While native staking is under discussion, some yield options already exist for XRP holders through external platforms. Flare Network offers staking via FAssets, enabling XRP holders to mint FXRP. That FXRP can then be used across DeFi platforms for yield.

This method allows XRP users to earn returns without depending on XRPL’s current design. The process does not require changes to XRPL itself. However, community discussions suggest strong interest in native alternatives.

These DeFi integrations may influence future decisions around XRPL upgrades. They also demonstrate demand for yield-generation tools linked to XRP. As activity increases, developers are exploring options to make staking more accessible on-chain.

XRP Spot ETF Sees Steady Growth

Bitwise’s XRP spot ETF has continued gaining traction on NYSE Arca. The fund currently holds $178.83 million in assets under management. It has attracted $163.11 million in net inflows so far.

The ETF represents approximately 80.5 million XRP in total holdings. This shows strong institutional interest despite ongoing market volatility. Bitwise launched the ETF to offer regulated exposure to XRP.

The fund tracks XRP’s price performance without requiring direct asset custody. This product complements the broader trend of value alignment for XRP holders. Discussions around staking continue alongside the ETF’s rising inflows.

Ripple’s development team has not yet released a timeline for implementing native staking. However, active conversations within the XRP ecosystem indicate momentum. Developers and stakeholders are now prioritizing long-term value for the network.

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