Explained: FXRP & XRPFi on Flare Network

FXRP is a one-to-one wrapped version of XRP that lives as an ERC-20 token on Flare Network. It lets XRP holders use their XRP inside smart contracts, lending markets, DEXs, and yield vaults without selling the underlying asset. XRPFi is the wider DeFi ecosystem that has formed around it.

Since FXRP went live on September 24, 2025, more than 155 million FXRP has been minted, around 140 million XRP sits deployed across DeFi protocols on the chain, and Flare has built a total value locked of roughly $151 million almost entirely off the back of its XRP indexing strategy.

Why XRP holders ever needed Flare

XRPL is fast, cheap, and battle-tested for payments. What it lacks is full programmability. There are no general-purpose smart contracts. Native DeFi on XRPL has been limited for years, and most attempts to build around it required either custodial bridges or moving the asset off-chain entirely.

Flare's pitch is straightforward. Keep XRP where it is on XRPL, and use Flare as the programmable layer that wraps it. Flare is EVM-compatible, so any developer used to Ethereum tooling can build on it. Two protocols are baked into the chain itself to make this work: the Flare Time Series Oracle for price data, and the Flare Data Connector, which verifies events on other blockchains without trusting a centralized relayer.

That second protocol is what makes FXRP possible.

How FXRP works under the hood

The system is called FAssets. FXRP was its first live deployment.

When a user wants to mint FXRP, they reserve collateral with an agent on Flare. Agents are independent participants who post over-collateralization in FLR, stablecoins, or ETH to back the assets they mint for users. The user then sends XRP on the XRP Ledger to the agent's address. The Flare Data Connector verifies that the XRP arrived using a Merkle proof. Once verified, FXRP is minted one-to-one and sent to the user's EVM wallet on Flare. The same flow runs in reverse for redemptions.

That over-collateralization, plus the FDC verification, is the security model. Where typical cross-chain bridges rely on a trusted multisig or a fixed validator set, FAssets agents must hold a minimum collateral ratio of 1.3x in FLR, stablecoins, or $ETH, and the FDC verifies XRPL payments using cryptographic Merkle proofs and network-wide attestation rather than a single relayer. FXRP is redeemable back to native XRP at any time, and the system includes emergency safeguards that have already been tested in practice, including a pause-and-patch cycle earlier this year that did not result in any lost funds.

This is also where the system has been getting easier to use. The FAssets v1.3 upgrade went live on Flare mainnet on May 14, 2026. It removes the requirement to manually select an agent and replaces it with destination-tag and memo-based routing. In practice, a user can withdraw XRP from Binance or Kraken with a specific destination tag, and the system automatically mints FXRP to their Flare address. One transaction. No bridging UI. FLR rallied roughly 14% on the announcement.

What XRPFi actually looks like

XRPFi is the umbrella term for the DeFi stack built on top of FXRP. Flare's own framing is the XRPFi Flywheel: deep stablecoin liquidity through USD₮0, composable FXRP collateral, paired liquidity, yield generation, and adoption that loops back into more minting.

What is actually live right now:

• Firelight runs liquid staking and Economically Secured Services through ERC-4626 vaults. Its stXRP product became the centerpiece protocol on the chain and currently ranks among the largest TVL holders in the ecosystem.
• Kinetic and Morpho Blue handle lending and borrowing. Morpho's modular markets, launched on Flare in February 2026, enabled the use of FXRP as collateral against stablecoins in isolated risk markets.
• SparkDEX provides Uniswap V3-style AMM trading.
• Upshift and Monarq run curated yield vaults, including MXRPY, a multi-strategy XRP yield product.
• An earnXRP vault built on this stack hit its 25 million XRP cap inside a week and pulled in over 5,400 users.

Stablecoin market cap on Flare sits at $63.75 million. USD₮0, the omnichain version of USDT delivered through LayerZero, is the main pairing asset.

The onboarding push

The story for the next phase of XRPFi is distribution. Smart contract infrastructure is in place. What Flare is now building out is the path from existing XRP custody to FXRP in as few steps as possible.

Xaman, the most widely used XRPL wallet, integrates with Flare Smart Accounts, allowing users to sign XRPL transactions that trigger actions on Flare. The XRP Alliance launched on May 19, 2026, with D'CENT, opening direct access to 720,000 hardware wallet users. Ledger and Bifrost support are already in place. Hex Trust offers institutional FXRP minting and $FLR staking. Teucrium filed with the SEC for a Flare ETF in October 2025, with the application still under regulatory review.

Hugo Philion (@HugoPhilion), Flare's Co-founder, has set the long-term ambition at five billion XRP wrapped as FXRP. That is roughly 8% of the circulating supply. Current figures put the system at well under 1% of XRP supply deployed in DeFi.

FAssets is not stopping at $XRP either. FBTC and FXLM are on the roadmap, each following the same model: take an asset with deep liquidity and a large holder base, leave it on its native chain, and bring its programmability to Flare.

Visit flare.network to learn more and follow @FlareNetworks on X for their latest updates.

Sources:

• Flare Network official FAssets product page covering FXRP mechanics, security model, and adoption figures.
• Flare Network breakdown of FAssets v1.3 and the destination-tag minting flow.
• Flare Developer Hub collateral ratio thresholds and FAssets liquidation parameters.
• DefiLlama live Flare TVL, stablecoin market cap, and chain metrics.