Flare Launches First XRP Spot Market on Hyperliquid, Expands DeFi Integration

Flare has launched the first XRP spot market on Hyperliquid through the listing of FXRP for spot trading. FXRP is a wrapped version of XRP issued on Flare and deployed as a LayerZero Omnichain Fungible Token. This development enables XRP to move across chains, trade on Hyperliquid's orderbook, and be redeemed back to XRP according to reports.

The FXRP/USDC trading pair is the initial listing on Hyperliquid. This spot market allows traders to access XRP exposure using institutional-grade tools and high-performance orderbooks. Flare's DeFi analyst, Dhruv Shah, emphasized that FXRP brings a new asset class into Hyperliquid's ecosystem while maintaining full on-chain end-to-end functionality as reported.

Hyperliquid's orderbook model is designed to outperform automated market maker pools in price discovery and execution, especially under high-volume conditions. Flare's co-founder, Hugo Philion, stated that combining Flare's FAssets infrastructure with Hyperliquid's orderbook expands XRP's utility across DeFi while preserving the XRP Ledger as the canonical settlement layer according to analysis.

Why Did This Happen?

The absence of a spot market for XRP on Hyperliquid was due to infrastructure constraints. XRP is not EVM-compatible, and a viable non-custodial bridge was previously lacking. The introduction of FXRP via Flare's FAssets system and LayerZero's OFT standard has now enabled cross-chain functionality. This setup allows FXRP to circulate between chains and trade on Hyperliquid while being redeemable back to XRP as documented.

Flare's DeFi analyst noted that Hyperliquid was chosen as the first expansion venue due to its orderbook-based design and the absence of an existing XRP spot pair. This integration supports Flare's broader XRPFi strategy, which aims to make FXRP the preferred XRP representation across DeFi ecosystems according to reports.

How Did Markets Respond?

The listing of FXRP on Hyperliquid reflects Flare's mission to expand XRP's role as a programmable, multichain coin. It also reinforces the XRP Ledger as a core settlement layer. Flare's streamlined on-chain flow includes an FXRP bridge powered by Flare Smart Accounts. This bridge allows one-click withdrawals of FXRP from Hyperliquid back to the XRP Ledger as XRP according to technical documentation.

After trading on Hyperliquid, FXRP can be bridged back to Flare to access DeFi use cases like lending and staking. The move supports Flare's broader strategy of making FXRP the preferred XRP representation across DeFi. The dedicated FXRP bridge is expected to launch later, enabling one-click withdrawals from Hyperliquid back to the XRP Ledger as stated.

What Are Analysts Watching Next?

Analysts are watching the potential for FXRP to become the preferred XRP representation across DeFi ecosystems. Flare is working with builders across the Hyperliquid ecosystem to integrate FXRP further and plans to expand FXRP to additional DeFi platforms over time. This development aligns with Flare's broader efforts to grow its XRPFi ecosystem according to analysis.

Flare has also launched earnXRP, a yield product designed to bring XRP into DeFi. Separately, Firelight Finance launched an XRP staking protocol on Flare, introducing a liquid staking token called stXRP. These initiatives highlight Flare's commitment to expanding XRP's utility and adoption within the DeFi space as reported.