Flare FXRP Launch Brings XRP to DeFi via Hyperliquid

Flare has launched the first XRP spot market on Hyperliquid. The initiative includes the listing of FXRP for spot trading, starting with an FXRP/USDC trading pair. This move allows XRP to gain exposure on Hyperliquid's on-chain orderbook according to Cryptopotato.

The integration of FXRP into Hyperliquid enables XRP holders to access DeFi use cases like lending and staking. FXRP is a 1:1 wrapped version of XRP, issued via Flare's FAssets system and deployed as a LayerZero Omnichain Fungible Token.

The FXRP listing maintains non-custodial custody while enabling cross-chain liquidity. Users can trade FXRP on Hyperliquid and redeem it back to XRP on the XRP Ledger without relinquishing control. This expands XRP's utility in DeFi ecosystems according to CryptoBriefing.

Why Did This Happen?

Hyperliquid previously supported only XRP perpetual futures, lacking a spot market. Flare's FAssets system and LayerZero's Omnichain Fungible Token standard enabled the creation of FXRP. This infrastructure removed technical constraints that previously limited XRP's availability on spot markets.

The absence of a non-custodial bridge was a key challenge for XRP's listing on Hyperliquid. Flare's FAssets framework solved this by providing a seamless conversion path between XRP and FXRP.

How Markets Responded

The launch of FXRP/USDC has already drawn strong interest from DeFi users. Over 80% of FXRP's supply is now tied to DeFi protocols, indicating robust demand for XRP-based products.

Hyperliquid's orderbook model is designed to perform well under high-volume trading conditions. This makes the FXRP/USDC pair suitable for directional trading.

Flare's co-founder Hugo Philion emphasized that the listing brings XRP into one of the most liquid on-chain trading environments. This expands XRP's role across DeFi while maintaining the XRP Ledger as the canonical settlement layer.

What Are Analysts Watching

Flare's DeFi analyst, Dhruv Shah, highlighted that the integration of FXRP into Hyperliquid gives traders access to a professional-grade trading environment.

The FXRP/USDC listing is part of Flare's broader XRPFi strategy. After trading on Hyperliquid, FXRP can be bridged back to Flare to access other DeFi applications.

Flare is also expanding its collaboration with DeFi builders on Hyperliquid. The goal is to further integrate FXRP across multiple platforms and make it the preferred XRP representation in DeFi ecosystems.