Axelar and Flare Networks are shaking up the XRP universe with plans to lock up huge chunks of its circulating supply.
Forget the usual market mumbo jumbo, these aren’t your average pump-and-dump schemes.
We’re talking about serious, programmatic token lock-ups that could tighten XRP’s tradable supply like a boa constrictor on a diet.
XRP yield
Axelar’s shiny new kid on the block is the mXRP yield product, freshly launched with an ambitious target.
Georgios Vlachos, Axelar’s co-founder, gave a peek behind the curtain during an X Space, saying they aim to absorb a staggering $10 billion worth of XRP, or roughly 5% of the entire circulating supply.
That’s no joke. This mXRP is essentially a yield-bearing, tokenized version of XRP that’s parked securely but busy sitting pretty, channelling capital through on- and off-chain strategies with base yields reportedly around 8% at launch.
Creating a composable asset for DeFi
Over at Flare Networks, CEO Hugo Philion isn’t shy about his goals either. He shared in a catchy crypto media clip that Flare wants to wrangle up to 5 billion XRP by mid-2026.
That’s almost half of Axelar’s target and a move meant to support their DeFi ambitions, think FXRP wrapping, stablecoin loans, and a restaking stack called Firelight, all crafted to make idle XRP work harder across lending and liquidity protocols.
So @axelar 's goal is to lock up 5% of the XRP circulating supply and @FlareNetworks 's goal is to lock up 5 Billion XRP. That's just two companies. Can you say supply shock?? pic.twitter.com/KBDahqMxfx
— Digital Asset Investor (@digitalassetbuy) September 23, 2025
Getting those dusty XRP tokens ticking with some institutional-grade DeFi plumbing is the mission.
Experts say both Axelar and Flare play the game of encumbrance rather than destruction. In Axelar’s world, mXRP is minted against XRP held hostage in vaults, creating a composable asset for EVM-compatible DeFi playgrounds.
Flare leans on FXRP wrapping and CDP-style borrowing, locking native XRP as collateral while letting synthetic liquidity flow.
The endgame? Moves that pull XRP away from exchange spot inventories into vaults, bridges, and decentralized finance mixers, where tokens stick, float supply shrinks.
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Looming XRP supply shock
Scale is the hammer here. Analysts shared that XRP’s circulating supply clings near 60 billion tokens.
Axelar’s 5% target means locking around 3 billion XRP. Flare’s 5 billion adds up to 8 billion tokens potentially out of immediate reach, the equivalent of about 13% of XRP’s tradable float heading into a quasi-hibernation.
This looming supply shock has traders whispering, hold onto your tokens, this could get interesting.
Whether these figures will fully materialize depends on user adoption, risk controls, and custody setups, but let’s just say the XRP market may be gearing up for a supply squeeze that could rattle those price charts in 2026.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: September 25, 2025 • 🕓 Last updated: September 25, 2025
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