- FXRP lets users mint a wrapped version of XRP to access DeFi services on the Flare network.
- Over $7 million XRP has been locked into Flare’s vault within hours of the FXRP launch.
- Users can use XRP for lending, borrowing, and staking through Flare’s decentralized DeFi system.
Flare has officially introduced FXRP, a wrapped version of XRP, to its blockchain. The launch enables XRP to be used in decentralized finance (DeFi) applications for the first time in a non-custodial, trust-minimized way. FXRP operates as a 1:1 representation of XRP on the Flare network using its FAssets system.
Within hours of launch, over $7.1 million worth of XRP was deposited into Flare’s core vault. The figure continues to rise as user demand grows.
New Utility Options for XRP Holders
XRP holders can lock their tokens and mint FXRP using the FAssets mechanism. This allows them to use XRP in DeFi protocols for lending, borrowing, and providing liquidity. Unlike previous wrapped XRP models, FXRP uses over-collateralization and on-chain verification to ensure decentralization. The system uses real-time data from Flare’s native oracles to maintain security and transparency. Audits and continuous monitoring further support the protocol’s integrity.
The first phase of the rollout includes a cap of five million FXRP during the launch week. The cap is expected to increase gradually based on network performance. Incentives in the form of rFLR tokens are being offered to liquidity providers on Flare-based decentralized exchanges like SparkDEX, BlazeSwap, and Enosys.
Targeted annual percentage rates (APRs) for these pools reach up to 50%. Earlier this week, Midas partnered with interoperability protocol Axelar to launch mXRP , a tokenized XRP product targeting a base yield of up to 8%, with the potential for higher returns through DeFi integrations.
Wider Adoption and Institutional Interest
Ripple’s development arm, RippleX, has acknowledged FXRP’s role in enabling broader DeFi access for XRP. Early institutional adopters include Everything Blockchain, which has started using Flare’s framework for treasury operations. The FXRP system provides options for staking, liquidity mining, and collateralized lending. Wallets like Luminite and Oxen Flow support FXRP transactions, making it accessible for both retail and institutional users.
The launch represents the first use case for the FAssets system. It allows tokens without native smart contract functionality to access DeFi. Flare’s developers plan to expand this framework to other assets such as Bitcoin and Dogecoin.
FXRP sets the foundation for future DeFi integrations and token utility across the Flare network. Last year, Flare and Red Date Technology launched a new pilot program in Hong Kong, enabling Mainland Chinese visitors to access stablecoin services securely and privately.
Caution on Yield and Security Risks
While FXRP unlocks new possibilities, users are advised to assess risks carefully. Validators and community members have noted that every yield opportunity involves trade-offs. Although FXRP does not generate yield directly, it enables access to DeFi tools that may offer returns.
However, some projects may carry security vulnerabilities or economic risks. Flare’s team has emphasized that protocol-level protections are in place, but individual users remain responsible for managing risk exposure.
