XRP News Today: Flare Network Advances XRP into DeFi with FXRP Launch

Flare Network is advancing XRP into decentralized finance (DeFi) by introducing FXRP, a fully collateralized representation of XRP on Songbird. FXRP utilizes a multi-collateral system and KYC compliance to ensure security and compliance in DeFi transactions. The upcoming launch of stXRP will enable liquid staking, allowing XRP holders to earn rewards while maintaining liquidity.

Flare Network is helping push XRP deeper into decentralized finance (DeFi) with FXRP — a fully collateralized, non-custodial representation of XRP on Songbird — and a growing suite of infrastructure now drawing interest from retail and institutional players alike. Flare validates off-chain data without external middleware. The framework secures FAssets, such as FXRP, and enables cross-chain transactions, which is key to building a decentralized financial ecosystem around XRP.

At the protocol layer, FXRP minting utilizes a multi-collateral system, pooling stablecoins, FLR, and agent funds, to maintain a 2x or greater over-collateralization ratio. All participating agents are KYC’d and monitored on-chain, adding a layer of compliance uncommon in DeFi bridges. While FXRP is currently live on Songbird (Flare’s canary network), the mainnet rollout is reportedly near. In blockchain parlance, a canary network is designed for testing new features and protocols before they are deployed to a main network, but operates as a fully functional, live network.

Ask Aime: How will Flare Network's FXRP enhance the XRP ecosystem in decentralized finance?

Interest is already picking up: Trading platform Uphold, which holds 1.8 billion XRP, is looking to integrate FXRP. Separately, VivoPower has committed $100 million in XRP for deployment on the Flare network. Next in line is liquid staking. Firelight Protocol plans to launch stXRP, a liquid staking derivative for FXRP. Modeled after stETH, the token will be transferable across Flare’s DeFi apps and allow holders to maintain liquidity while earning rewards, further expanding XRP’s use case on the network.

If the launch plays out as designed, Flare may finally bring DeFi utility to one of crypto’s most held, but underutilized, tokens. While the XRPL has native functions like escrows, checks, and payment channels, it cannot implement complex smart contracts. FAssets bridge this gap by allowing XRP token holders to participate in a full range of DeFi activities, such as lending, borrowing, yield farming, and liquidity provisioning, without sacrificing custody of their underlying assets. This is particularly significant for XRP, which has historically been limited in its DeFi applications despite its substantial market capitalization and global adoption. For institutions, XRPFi offers a way to generate yield on their XRP holdings, which have traditionally been held as static assets.