Bitwise CIO Matt Hougan says XRP is entering a new phase of evolution as it aligns with a broader industry shift toward stronger value-capture mechanisms.
In a detailed thread on X, Hougan argued that investors are overlooking some of crypto’s most meaningful developments amid volatility. He pointed out that many leading networks are actively improving how they capture value for holders—a trend he believes now includes XRP.
The Bitwise CIO pointed out that the XRP community is now discussing staking mechanisms, a development that would fundamentally reshape how value accrues to XRP holders.
XRP Community Now Explores Native Staking
Despite being more than a decade old, the XRP Ledger (XRPL) still does not support native staking. Notably, staking is a feature of Proof-of-Stake (PoS) networks.
Instead, XRPL uses its own consensus mechanism, the XRP Ledger Consensus Protocol (XLCP), which relies on trusted validators rather than token-holder staking. In other words, the network was not originally designed to reward holders for securing the network.
As a result, XRPL has lagged behind newer blockchains in tapping into the expanding opportunities of decentralized finance (DeFi). However, that dynamic is shifting. In recent weeks, the XRP community has actively explored the possibility of bringing native staking to the ledger.
The discussion gained traction after Ayo Akinyele, head of engineering at Ripple’s development arm, RippleX, raised the topic in an X thread. He noted how XRP has evolved beyond simple value transfer to powering tokenized asset settlement and real-time liquidity across multiple markets.
Akinyele argued that the introduction of XRP ETFs signals a new era for the asset—one that justifies revisiting XRPL’s economic model. He revealed that he and Ripple CTO David Schwartz have been evaluating what native staking on XRPL might look like.
Since transaction fees on XRPL are burned rather than paid to participants, Akinyele emphasized the need to establish a sustainable source of staking rewards and a fair mechanism for distributing them across the network.
Notably, Ripple CEO Brad Garlinghouse encouraged the community to participate in discussions that could introduce native staking on XRPL.
With new DeFi protocols and apps emerging for XRP, what other possibilities for the network should be discussed? Ripple eng leader @ja_akinyele tackles this and the questions that need to be considered at the outset 👇 https://t.co/RCkiWKuiTO
— Brad Garlinghouse (@bgarlinghouse) November 18, 2025
XRP Value Capture Evolving, Not Static
The community’s renewed interest shows a desire for ways to capture more value from XRP. This matches the trend Hougan mentioned, that token value capture is changing and evolving.
As discussions around native staking on XRPL continue, several XRP-focused DeFi initiatives have already emerged to offer holders yield-generating opportunities.
One notable example is FAssets, a project from Flare Network. Through this system, XRP holders can stake their tokens on the Flare blockchain to mint FXRP, which can then be deployed across various DeFi platforms to earn yield.
Meanwhile, Bitwise’s recently launched XRP spot ETF has continued to gain traction on NYSE Arca. The fund currently has $163.11 million in net inflows and holds $178.83 million in AUM, representing approximately 80.5 million XRP.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
