$XRP Investors are increasingly targeting annual passive returns of up to 10% as new financial infrastructure and decentralized finance (DeFi) tools increase the potential for generating returns.
$XRP Proponent Kevin Cage suggested that the coming financial frameworks could deliver returns of 5% to 10% over time. He acknowledged that there aren’t many ways to earn interest on the token right now, so most people are just sitting on their bags. However, he is confident that things will change with the rollout of new DeFi platforms, institutional setups and cross-chain technology.
He shared on $XRP is not a Proof-of-Stake coin. But the revenue comes from the new infrastructure that is 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.
According to Cage, crypto lending platforms could deliver between 3% and 8% in returns
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 bigger role and can deliver returns between 4% and 10%. Cage added that cross-chain strategies will soon help $XRP holders to earn returns across multiple blockchains.
He also envisioned a future where financial apps, exchanges and wallets offer built-in, automated return accounts. Cage noted that this development will make things incredibly easy for us $XRP holders to start earning passive income.
In response to Cage’s insights, a commentator noted in support: “Absolutely excited about Collateral. That’s the new financial system. Within institutional custody, holders can probably earn an average of 5% as institutions holding the asset also seek returns from collateral holdings. They want returns, not your mark.”
However, one user on X agreed with Cage’s direction, warned that future profits from the token will depend on its utility and not on the asset itself, highlighting that any return carries risk. He claimed: “The returns will come. But not without compromises.”
$XRP is already increasing its usefulness and application
Chief Strategy Officer at Ēnosys Global, Darren Williams, also noted in response to Cage’s post that $XRP is already being used as FXRP in a CDP on Enosys Loans via Flare Network, backing approximately $9 million in debt.
The Flare blockchain unlocked active credit and lending markets for $XRP-linked assets via an integration with Morpho. The development team announced that this update will allow users to lend and borrow FXRP, Flare’s proprietary 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 $XRP holders can access DeFi directly from their wallets. The integration allows holders to earn returns through self-custody, aligning this with capabilities already seen on Ethereum and Solana.
The setup also allows investors to make deposits $XRP directly from the Xaman wallet interface to Upshift’s earnXRP vault. The system goes on to generate FXRP on Flare and channel it into compound return strategies managed by Clearstar, sending profits back to the user. Remarkably, holders can access this without downloading new software, purchasing their own gas tokens, or managing a separate set of private keys.
Additionally, entities such as Axelar and Hex Trust have implemented decentralized financial frameworks designed specifically for $XRP market participants, thereby increasing the operational utility of their holdings.