XRP Set to Gain Utility with New Flare Staking Protocol

XRP is poised for a major leap forward in decentralized finance as Flare Network CEO Hugo Philion introduces Firelight — a new product aimed at activating billions of dollars in dormant XRP. In a recent post on X, Philion emphasized that this initiative could unlock XRP’s potential in the DeFi space, offering yield generation without sacrificing asset control.

Firelight is a liquid staking mechanism being developed on the Flare blockchain. Designed specifically for non-smart contract tokens, it creates a new use case for XRP by converting it into a yield-bearing, tradable asset. For years, XRP holders have lacked access to traditional DeFi capabilities due to the token’s architectural limits. Firelight aims to change that.

How Firelight Elevates XRP’s Role in DeFi

Firelight enables users to convert native XRP into FXRP — a wrapped version of the asset — via Flare’s FAssets protocol. This technology bridges non-programmable tokens like XRP, Bitcoin, and Dogecoin to the smart contract-enabled Flare network. Once in FXRP form, users deposit their tokens into a secure Firelight vault and receive stXRP, a new derivative that represents staked XRP.

What makes Firelight innovative is that stXRP remains liquid and usable in DeFi ecosystems. Holders can trade, lend, or integrate the derivative asset across various protocols — all while the underlying FXRP continues to earn staking rewards through Flare’s Secured Service Network. This represents a significant step for XRP holders seeking returns without relinquishing direct control or liquidity.

Institutional Confidence Behind Firelight

Firelight has already attracted attention from prominent industry players. Clean energy firm VivoPower recently committed a $100 million allocation of XRP to Firelight, indicating strong institutional interest. The company is leveraging the Flare protocol to move their assets into a more productive on-chain framework.

Meanwhile, well-known crypto platform Uphold has joined as a launch partner, offering users simpler retail access to FXRP and streamlining the staking process. This partnership reinforces Firelight’s infrastructure while expanding its appeal to both institutional and retail audiences.

According to industry analysts and observers, such early adoption suggests a broader wave of interest is on the horizon. As highlighted in a recent analysis, even a modest funneling of XRP’s estimated $120 billion market capitalization into Firelight could substantially improve DeFi liquidity across the ecosystem.

Unlocking a Sleeping Giant

Unlike Ethereum or Cardano, XRP lacks innate smart contract support, historically limiting its utility in the evolving DeFi arena. Millions — if not billions — of XRP tokens have remained dormant simply because they couldn’t be deployed effectively. With Firelight, the gap is finally narrowing as Flare brings interoperability and capital efficiency to XRP.

Notably, this move isn’t playing out in a vacuum. Similar efforts are underway to incorporate non-smart contract assets, such as Bitcoin, into DeFi use cases. Projects on networks like Cardano have started building mechanisms for BTC to earn yields, as detailed in recent reporting. However, XRP’s compatibility with Flare gives it a unique edge due to the broadly integrated FAssets system.

Philion believes Firelight could vastly increase the circulation and practical value of XRP in the decentralized ecosystem. He envisions a future where utility and rewards converge, creating a new paradigm for XRP holders who have long awaited a path to passive income generation.

The XRP Community Reacts

Members of the XRP community have responded strongly to Firelight’s potential. Legal expert Bill Morgan, commenting on the platform, stated that XRP now needs to “work harder,” noting its evolution past the role of an “imaginary store of value.”

In the past, XRP’s fixed use case in interbank transfers inhibited broader exploratory financial applications. But with Firelight, a seismic shift appears underway. By allowing users to stake and earn with liquidity intact, XRP is stepping into a more versatile financial future.

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

With Firelight’s planned release inching closer, XRP may finally bridge the chasm between traditional utility and modern DeFi integration — offering both yield and freedom to individual and institutional holders alike.