$XRP investors are increasingly targeting annual passive returns of up to 10% as new financial infrastructure and decentralized finance (DeFi) tools expand yield-generating opportunities.
$XRP advocate Kevin Cage suggested that upcoming financial frameworks could yield returns of 5% to 10% over time. He acknowledged that, at the moment, there aren’t many ways to earn interest on the token, so most people are just sitting on their bags. However, he is convinced things are about to change with the rollout of new DeFi platforms, institutional setups, and cross-chain tech.
He shared on X: “In the next few years, we’ll likely be able to earn 5-10% on our crypto in multiple ways. We know that $XRP isn’t a Proof-of-Stake coin. But yield is coming through the new infrastructure being built.”
A growing ecosystem of third-party platforms is bridging this gap by offering “staking-like” services, including lending, liquidity provision, and yield farming.
Crypto lending platforms could bring in between 3% and 8% in returns, according to Cage
Cage noted that $XRP holders will soon have multiple ways to generate passive income on their tokens. He estimated that standard crypto lending platforms could yield between 3% and 8%, while more structured institutional products could push annual returns to 5% to 12%.
He also noted that tokenized real-world assets (RWAs) are playing a larger role and could deliver returns between 4% and 10%. Cage added that cross-chain strategies will soon help $XRP holders to gain yield across multiple blockchains.
He also envisioned a future where financial apps, exchanges, and wallets offer built-in, automated yield accounts. Cage noted that this development will make it incredibly easy for $XRP holders to start earning passive income.
In response to Cage’s insights, one commenter remarked in support, “Definitely excited for Collateral. That’s the new financial system. Within institutional custody, holders can likely earn an average of 5%, as institutions holding the asset also seek yield from collateral holdings. They want yield, not your token.”
However, one user on X, though agreeing with Cage’s direction, cautioned that future gains from the token will depend on its utility rather than the asset itself, stressing that every yield comes with risk. He contended, “Yield will come. Just not without trade-offs.”
$XRP is already increasing its utility and application
Chief Strategy Officer at Ēnosys Global, Darren Williams, also in response to Cage’s post, noted that $XRP is already being used as FXRP in a CDP on Enosys Loans via Flare Network, backing roughly $9 million in debt.
The Flare blockchain unlocked active lending and borrowing markets for $XRP-linked assets through an integration with Morpho. The development team announced that this update allows users to lend and borrow FXRP, Flare’s native, asset-backed version of $XRP. Holders of FXRP can now deposit their tokens to earn interest or use them as collateral to secure loans in other digital assets, including stablecoins.
Flare Network also partnered with Xaman Wallet to simplify access, enabling $XRP holders to tap into DeFi directly from their wallets. With the integration, holders can earn yield via self-custody, aligning it with capabilities already seen on Ethereum and Solana.
The setup also allows investors to deposit $XRP into Upshift’s earnXRP vault directly from the Xaman wallet interface. The system proceeds to mint FXRP on Flare and channel it into curated yield strategies managed by Clearstar, routing the profits back to the user. Remarkably, holders can access this without downloading new software, buying native gas tokens, or managing a separate set of private keys.
Additionally, entities such as Axelar and Hex Trust have deployed decentralized finance frameworks engineered specifically for $XRP market participants, thereby expanding the operational utility of their holdings.
