Nikolas Sargeant
For years, XRP holders have looked for ways to put their assets to work in decentralized finance. That possibility has finally arrived with the launch of FXRP on the Flare Network, the first non-custodial, overcollateralized version of XRP built specifically for DeFi applications.
The rollout represents the debut of Flare’s long-awaited FAssets framework, a system designed to make non-smart contract tokens like XRP interoperable with decentralized protocols. It marks a pivotal step in expanding XRP’s use case beyond payments and into lending, liquidity provision, and broader DeFi activity.
How FXRP works
FXRP is a one-to-one representation of native XRP that can be minted by depositing collateral through a network of independent agents on Flare. Once minted, the asset can be used across the ecosystem: traded on SparkDEX, supplied as liquidity on BlazeSwap, or bridged via Enosys. Wallets such as Luminite and Oxen Flow already support minting and swapping, lowering the barrier to entry for everyday users.
To manage risk, the initial release is capped at five million FXRP in the first week, with the ceiling gradually increasing as the system matures. Early adopters are being incentivized with rFLR, Flare’s native rewards token, distributed through liquidity pools that are currently targeting annual yields of up to 50 percent.
Why this matters for XRP
Attempts to bring XRP into DeFi are not new. Custodial wrapped versions have appeared before but saw limited adoption due to the need to trust centralized intermediaries. FXRP takes a different approach: it is fully non-custodial, with collateralization requirements and verification baked into the protocol itself.
“The difference here is that FXRP is designed to be non-custodial and overcollateralized, with on-chain, protocol-level verification rather than trusting a single custodian,” said Filip Koprivec, chief product officer at Flare. “FXRP itself doesn’t pay yield. It’s a base asset you can deploy into DeFi on Flare; lending, LPing, soon liquid staking, to earn yield.”
Flare’s built-in data tools, the Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC), provide the pricing and state verification needed to keep the system auditable on-chain, removing dependence on off-chain feeds or centralized validators.
Security and audits
Security has been central to the FXRP launch. Flare’s FAssets system has undergone third-party audits from Zellic and Coinspect, supplemented by bug bounty programs and continuous monitoring by Hypernative. This emphasis on security is intended to build confidence among XRP holders who may have been cautious about DeFi integrations in the past.
A wider push into DeFi
The launch comes during a broader wave of efforts to make XRP compatible with decentralized finance. Just days earlier, Midas and Axelar introduced mXRP, a tokenized XRP product marketed with yield opportunities. Flare, however, is betting on decentralization as its differentiator.
The network is also preparing to extend its FAssets framework to other major tokens, including Bitcoin and Dogecoin, signaling an ambition to bridge some of the most widely held cryptocurrencies into DeFi ecosystems.
Market response
The market has reacted positively to the launch. Flare’s native token, FLR, has gained nearly eight percent in the past 24 hours, trading at around $0.03 and securing a market capitalization of $1.9 billion. That positions FLR among the top 100 crypto assets, with investor attention likely to intensify as FXRP adoption grows.
For XRP holders, FXRP represents more than just another wrapped asset, it is a long-awaited gateway into decentralized finance and potentially the beginning of what Flare calls the “XRP DeFi awakening.”
