XRP News Today: XRP's Bridge to DeFi and ETFs Reshapes Its Role in Crypto

The crypto market is witnessing a surge in activity as multiple firms advance spot ETF proposals and DeFi platforms integrate XRP-based liquidity. 21Shares, a Swiss asset manager, has taken a significant step toward expanding its cryptocurrency ETF portfolio by filing with Nasdaq to list a Polkadot (DOT) spot ETF. The move follows an amended S-1 filing earlier this year and positions the firm to potentially offer new investment vehicles for investors seeking exposure to the Polkadot network, according to a CoinDesk report.

Meanwhile, Ripple, the company behind XRP, is on the brink of a potential breakthrough in the U.S. with seven XRP spot ETF applications pending before the Securities and Exchange Commission (SEC). According to a report by Messari, a blockchain analytics firm, the SEC is expected to rule on these applications by November 18, with a 99% probability of approval in the fourth quarter, as reflected in Polymarket betting odds, according to an FXStreet article. This anticipation is bolstered by institutional interest, with entities like Trident Digital Tech Holdings and Webus International allocating hundreds of millions in XRP to Digital Asset Treasuries (DATs), signaling growing confidence in the asset.

The regulatory developments are intertwining with innovations in decentralized finance (DeFi). SparkDEX Eternal, a decentralized trading protocol on the Flare Network, has relaunched perpetual contracts trading to capitalize on the rising XRPFi (XRP-based DeFi) narrative. The platform now supports on-chain perpetual futures for assets like ATOM, DOT, and UNI, alongside fee discounts for SPRK token stakers. This expansion aligns with Flare's broader strategy to migrate XRP liquidity into DeFi through its FXRP bridge, which allows users to wrap XRP for use in lending, stablecoin minting, and derivatives trading, as reported by Coinotag.

The Flare Network's ecosystem is seeing a 40% increase in Total Value Locked (TVL) since the XRP bridge's activation, with perpetual trading volumes rising 25% quarter-over-quarter. SparkDEX Eternal's integration with Flare's EVM-compatible infrastructure and Time Series Oracle (FTSO) v2 ensures low-latency market data and secure execution, addressing risks associated with centralized derivatives platforms, as noted by Coinotag.

These developments highlight a broader trend of institutional and retail adoption of XRP, driven by regulatory clarity and DeFi innovation. Ripple's recent legal settlement with the SEC—paying $50 million in penalties after a prolonged lawsuit—has further solidified confidence, with institutions accelerating their DAT allocations. Meanwhile, Flare's FXRP bridge is enabling XRP holders to participate in yield-generating activities without selling their tokens, creating a flywheel effect for liquidity and usage.

As the crypto market navigates macroeconomic uncertainties, the convergence of ETF approvals and DeFi tools is reshaping XRP's role from a cross-border payment token to a versatile asset for institutional portfolios and on-chain trading. With the SEC's decision on XRP ETFs looming and platforms like SparkDEX Eternal expanding access to derivatives, the ecosystem is poised for a new phase of growth.