XRP News Today: Ripple Faces a Staking Dilemma on the XRP Ledger: Balancing Trust and Incentive Conflicts

Ripple (XRP) is considering adding staking capabilities to its

Ledger (XRPL), a step that could strengthen its presence in decentralized finance (DeFi) and increase its appeal to financial institutions. David Schwartz, Ripple’s chief technology officer, recently discussed two potential staking frameworks, but noted that actual implementation is still a long way off due to the significant changes required to XRPL’s infrastructure. to establish XRP as a preferred solution for banks and businesses seeking secure, efficient international payments and compliance with regulations.

The suggested staking models are designed to improve XRPL’s security and encourage token holders to participate over the long term. One proposal features a two-tier consensus approach: an inner validator group, chosen by stake, would handle ledger updates with slashing and staking, while an outer group would focus on governance. The alternative would keep the current Proof of Association system but use transaction fees to support zero-knowledge proof (ZKP) verification, allowing for more trustless validation.

and major modifications to the ledger, which currently burns transaction fees to help control supply.

Ripple’s investigation into staking reflects a wider movement in the crypto sector, where staking is now central to network security and user participation. For the banking sector, the advantages are evident: staking could lower operational expenses, boost transparency, and make cross-border payments more efficient—areas where XRP already has a foothold. J. Ayo Akinyele, who leads engineering at RippleX, believes staking could transform the incentives for both validators and token holders, creating a stronger ecosystem.

that focusing too much on financial incentives rather than trust-based consensus could run counter to XRPL’s foundational philosophy.

This move is particularly timely. Earlier this month, Ripple’s chief legal officer, Stu Alderoty, expressed support for a Federal Reserve proposal that would allow crypto companies to access so-called “skinny” Fed accounts. Such access could let stablecoin providers like Ripple bypass conventional banks, speeding up settlements and cutting costs.

could make RLUSD—Ripple’s stablecoin tied to the U.S. dollar—more stable and easily redeemable by allowing smooth exchanges between Treasuries and cash.

Although staking on XRPL is still in the conceptual stage, Ripple’s emphasis on regulatory compliance and operational improvements highlights its goal to connect traditional finance with DeFi. For banks, Ripple’s offerings—from cross-border payment solutions to possible staking features—provide tools to adapt to a financial world increasingly influenced by digital assets. As the Fed’s proposed payment system changes progress, Ripple’s technological flexibility may shape its future role in financial innovation.