Uphold stated it is seeking options to earn a yield on $XRP. They are experimenting with XRP staking via Flare Networks.
The company shared an X post: “Welcome to smart contracts and DeFi opportunities, #XRPArmy. The company then asked its users to “Stay tuned for the beta.”
Uphold intends to take root in the US in following Trump’s pro-crypto stance
In the last quarter of 2023, Uphold released Vault, a self-custodianship wallet that the company says empowers user to have more ownership of their digital assets. The wallet launched initially with XRP as an option, in keeping with Uphold’s existing dedication to the token.
The company has also highlighted the Flare Network (an EVM-compatible Layer 1 blockchain emphasizing cross-chain interoperability). The recent release of USDT₀, an omnichain variant of Tether’s USDT on Flare, has massively increased the network’s TVL, indicating surging demand for cross-chain DeFi utility.
Uphold is further expanding its users’ functionality with the re-launch of its crypto debit card, which is available in the UK and US. It plans to extend the offering to other countries soon. The card (available in a virtual and physical version) offers people a way to spend digital currencies directly from their wallets and thus use crypto more as everyday money.
The company’s broader push into the US market reflects a wider trend among crypto firms looking to capitalize on a more favorable regulatory climate under President Donald Trump’s administration. Uphold appears keen to position itself at the forefront of this shift.
In March, Uphold reinstated staking rewards for US customers on 19 digital assets such as Ethereum, Solana, and NEAR.
Concerning this, Uphold CEO Simon McLoughlin highlighted that staking is important in how blockchain works and the online economy. Based on his argument, users should be able to back this activity and earn rewards. He further stated that with the new focus on blockchain in the U.S., they are excited to provide staking services to their customers in the US once more.
Building on that momentum, Uphold announced on May 30 that it will soon offer direct deposits with integrated rewards for US users. This feature includes a “Direct Salary Deposit” option, paired with the industry’s first 4% XRP-back reward. Additionally, users can earn 5% rewards on RLUSD, Ripple’s new USD-backed stablecoin.
Through a mix of DeFi integrations, payment tools, and rewards, Uphold is aggressively expanding its footprint in the US while bringing greater utility to XRP and other digital assets.
Uphold disabled staking amid regulatory uncertainties
US staking was not available at Uphold as of 2023. The main reason was regulatory uncertainty regarding crypto staking. Staking firms failed to disclose enough information to their clients, specifically how they were securing their staked assets, the SEC complaint alleges.
The agency also assessed whether staking services constituted unregistered securities offerings. Numerous of them were left with no choice but to pause or limit the staking offers in the United States.
A significant instance of this regulatory move happened when the SEC reached a $30 million settlement with Kraken, a major crypto exchange, for providing unregistered staking services. This very public case warned the rest of the industry and likely caused Uphold to stop its staking services. That is why companies might hesitate to provide their stacking services.
Uphold’s recent consideration to take root in the US in the staking sector marks a significant milestone in the crypto community. This is because as investors earn passive income through staking, liquidity, and stability will be achieved. This represents a giant bet on cryptocurrencies.
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