Flare Launches First XRP Spot Exposure on Hyperliquid via FXRP

Flare has introduced the first XRP spot exposure on Hyperliquid via FXRP, a wrapped version of XRP. This development marks a significant expansion in the DeFi ecosystem for XRP, previously limited to perpetual futures on the platform.

FXRP is a 1:1 wrapped representation of XRP issued via Flare's FAssets system and deployed as a LayerZero Omnichain Fungible Token.

The integration allows FXRP to move across chains, trade on Hyperliquid's orderbook, and later be redeemed back to XRP on the XRP Ledger. Flare stated that a dedicated FXRP bridge powered by Flare Smart Accounts is expected to launch later, enabling one-click withdrawals from Hyperliquid back to the XRP Ledger.

This move aligns with Flare's broader XRPFi strategy, aiming to make FXRP the preferred XRP representation across DeFi ecosystems. Flare's DeFi analyst, Dhruv Shah, noted that the goal is to enable FXRP to be used in lending, staking, and other DeFi applications after trading on Hyperliquid.

Why Did This Happen?

The absence of a spot listing for XRP on Hyperliquid was due to infrastructure constraints. Like Bitcoin, XRP is not EVM compatible, which means that Hyperliquid—like other onchain platforms— lists wrapped versions for spot assets.

Flare co-founder Hugo Philion stated that the move places XRP within one of the most liquid onchain trading environments. By combining Flare's FAssets infrastructure with Hyperliquid's orderbook, they are expanding what XRP can do across DeFi while preserving the XRP Ledger as the canonical settlement layer.

How Did Markets Respond?

The integration has broadened the utility of XRP within DeFi while maintaining the XRP Ledger as the primary settlement layer. Flare has been involved in several recent efforts to grow its XRPFi ecosystem, including the launch of earnXRP, a yield product designed to bring XRP into DeFi, and Firelight Finance's XRP staking protocol.

The move brings XRP spot exposure to Hyperliquid's onchain orderbook, expanding liquidity access across chains while maintaining custody onchain. This development has generated interest among traders and investors who are looking to access XRP spot exposure on a more liquid platform.

What Are Analysts Watching Next?

Analysts are watching how FXRP adoption will evolve on Hyperliquid and other DeFi platforms. Flare is working with builders across the Hyperliquid ecosystem to integrate FXRP further and plans to expand FXRP to additional DeFi platforms over time.

The success of FXRP on Hyperliquid could influence the broader DeFi ecosystem and potentially attract more liquidity and traders to the platform. The launch of a dedicated FXRP bridge powered by Flare Smart Accounts is also a key milestone to watch.

Beyond Hyperliquid, Flare's plans to integrate FXRP into other DeFi platforms will determine the token's long-term utility and adoption. The goal is to make FXRP the preferred XRP representation across DeFi ecosystems.

Market participants are also closely monitoring regulatory developments and institutional adoption trends for XRP, as these factors could significantly impact the token's value and usage across DeFi platforms.