XRP Gains DeFi Momentum via Flare’s FXRP and FAssets

XRP continues to gain traction in the decentralized finance (DeFi) ecosystem as Flare Network expands its groundbreaking offerings such as FXRP and FAssets, according to a recent Messari report.

Flare Network is pioneering ways to extend DeFi capabilities to XRP, one of the most widely held cryptocurrencies. Through its Songbird canary network, Flare has introduced FXRP — a non-custodial, fully collateralized version of XRP that opens the door for activities like staking, lending, and yield farming. This move is especially transformative for XRP, a token that, until recently, lacked direct access to advanced smart contract capabilities.

Unlike many DeFi networks that rely on external middleware, Flare validates off-chain data natively. This innovation plays a crucial role in securing FXRP and enabling cross-chain interoperability, which is essential for building a comprehensive decentralized ecosystem around XRP.

The FXRP protocol employs a multi-collateral minting mechanism. This approach pools together stablecoins, Flare’s native FLR token, and funds from network agents to maintain a minimum 2:1 over-collateralization ratio. Security and compliance are also emphasized — all agents involved in minting are subject to Know Your Customer (KYC) guidelines and are tracked on-chain, an unusual but welcomed feature in the realm of DeFi bridges.

Currently active on Songbird, FXRP is expected to make its debut on the Flare mainnet soon. For context, a canary network like Songbird serves as a fully operational testbed for new blockchain features, offering a live environment without jeopardizing the main production network.

Momentum is already building within the broader crypto ecosystem. Digital asset platform Uphold, which holds approximately 1.8 billion XRP, is reportedly preparing to integrate FXRP into its offerings. Meanwhile, Nasdaq-listed energy company VivoPower has pledged a significant commitment: $100 million worth of XRP to be used on the Flare network.

The innovation doesn’t stop there. The upcoming launch of stXRP by the Firelight Protocol introduces a liquid staking derivative modeled after stETH. This token will allow users to remain liquid while still earning rewards, supporting seamless mobility of staked assets across Flare’s DeFi applications.

If the rollout proceeds as intended, Flare’s infrastructure may finally unlock true DeFi utility for XRP. Despite its global presence and major market capitalization, XRP has historically lacked access to traditional DeFi protocols due to XRPL’s limitations — namely, an inability to support complex smart contracts.

Messari analysts noted, “While the XRPL does feature native tools like escrows, checks, and payment channels, it lacks comprehensive smart contract capabilities.” They emphasized that products like FAssets effectively fill this gap, giving XRP holders a path to participate in a full spectrum of DeFi services — a movement some are calling XRPFi.

This development is especially critical for institutions that have held large quantities of XRP as passive reserves. With the advent of XRPFi via Flare, these holdings can be deployed into productive assets, offering yield opportunities that align with DeFi’s core value proposition.

Related: Expert Advice: Sell XRP If You’re Confused

In sum, FXRP, FAssets, and forthcoming liquid staking options mark a new chapter in XRP’s evolution. As Flare Network continues bridging functionality gaps, it may well redefine XRP’s role in decentralized finance — unlocking new opportunities for individual investors and institutions alike.