Flare Surges 12% As Protocol Unlocks Native Xrp Liquidity

@FlareNetworks has officially launched FAssets v1.3, a protocol upgrade that lets $XRP holders mint and redeem $FXRP using native XRPL destination tags. The update sent $FLR climbing more than 12% on the day and roughly 24% over the prior seven days.

What FAssets v1.3 Changes

FAssets v1.3 is now live on Songbird, allowing users to mint FXRP directly from an XRP transaction without selecting an individual agent. The upgrade adds destination tag and memo-based routing, making FXRP minting more compatible with wallets, exchanges, and custodians already used across the XRP ecosystem.

The core change is direct minting via XRPL destination tags: an XRP holder can send XRP from an XRPL address, including from an exchange that allows destination tags, and have FXRP minted directly to a Flare address, without going through a separate bridge interface. The release also adds mint-side controls, including executor restrictions, proof-use binding, hourly and daily caps, delays on large mints, and a governance path for reviewed unblocking.

FXRP is the first live FAsset: a 1:1 representation of XRP on Flare, designed to make XRP usable across EVM DeFi while remaining connected to XRPL as the native asset and settlement layer. The protocol uses $XRP escrow and multi-sig infrastructure to secure Core Vault operations, while introducing yield mechanics for participants across lending, liquidity pools, and vault strategies.

Flare's FAssets v1.3 upgrade is live on mainnet and allows FXRP minting in a single XRPL transaction, treating future mints as simple XRP withdrawals from major centralised exchanges like Binance, Kraken, OKX, Upbit, and Bithumb.

Firelight Phase 2 and Community Governance

Alongside the FAssets upgrade, the Flare community is actively voting on the launch schedule for Firelight Phase 2, with a target window of May or June 2026. Early voters are eligible for $rFLR rewards. $rFLR vests linearly over 12 months, with 1/12 claimable monthly from the Portal, and early withdrawal of unvested rewards incurs a 50% penalty.

Firelight, Flare's liquid staking protocol for FXRP, is slated for its Phase 2 launch in the second quarter of 2026. This phase will introduce a fully activated DeFi cover and native XRP staking mechanisms, building on the initial liquid staking token (stXRP) launched in late 2025. Firelight's broader goal is to give XRP holders a way to earn staking rewards while offering DeFi protocols an insurance layer against hacks and failures.

Flare is now the largest XRPFi ecosystem in the market, with approximately $200 million in XRP TVL anchoring a $440 million ecosystem, 28% growth over the period, and 3.4 million-plus FXRP DeFi transactions across roughly 16,500 users since launch.

Sources:
Flare Network: XRPFi's Next Phase
The Block: Firelight Launches XRP Staking Protocol on Flare
Messari: Flare, The Launch of FAssets