For over a decade, XRP has supported global payments through low-cost, high-speed settlement on the XRP Ledger. However, XRP’s utility remained largely siloed due to the XRP Ledger’s limited support for smart contracts. The recent launch of FXRP on Flare addresses this gap by extending XRP into decentralized finance (DeFi). Through Flare’s FAssets protocol, users can now mint a wrapped version of XRP—FXRP—that offers composability within the Flare ecosystem. This unlocks XRP’s potential for collateralization, yield generation, and integration into EVM-compatible DeFi protocols.
Flare’s approach differs from traditional wrapped tokens. Instead of relying on centralized custodians, Flare’s system uses agents who post collateral to secure minting requests. Users initiate FXRP minting by sending XRP to an agent, who then deposits collateral into a smart contract vault on Flare. Once verified via Flare’s data oracle, the system mints FXRP 1:1 for the deposited XRP. According to Flare’s documentation, the collateral must exceed the value of the minted FXRP by at least 30%. This ensures the system remains secure even if asset prices fluctuate. To support a secure rollout, FXRP minting is capped at 5 million during week one, with the cap set to increase gradually.
For over a decade, XRP has powered fast and efficient settlement at scale.
— Flare ☀️ (@FlareNetworks) September 24, 2025
FXRP on Flare extends that strength with composability, opening new growth opportunities: XRP as collateral, liquidity, and yield in DeFi.
Mint today:https://t.co/1ovLRNisHZhttps://t.co/Kjsp3Okyrc pic.twitter.com/SRXZIzCZ3a
Unlocking DeFi Composability with FXRP
FXRP enables XRP holders to interact with smart contracts and DeFi tools across the Flare ecosystem. Composability means that FXRP can be used as collateral, supplied to liquidity pools, or deployed in lending and borrowing markets. For example, users may provide FXRP as collateral on platforms like Enosys to mint synthetic assets or earn interest. Users can also acquire FXRP through DEXes like SparkDEX, BlazeSwap, or Enosys, and manage it using wallets such as Luminite and Oxen Flow. Liquidity providers may also use FXRP to seed automated market maker (AMM) pools, gaining exposure to yield opportunities otherwise unavailable to native XRP holders.
These new capabilities depend on several infrastructure layers. First, Flare’s time-series oracle ensures that price feeds and transaction validation remain accurate. Second, a “Core Vault” system allows agents to share collateral across multiple minting positions, improving capital efficiency. These upgrades, introduced in FXRP v1.2, were first deployed on Flare’s canary network, Songbird, before launching on mainnet. Smart contract audits by firms like Zellic and Coinspect, along with a bug bounty program on Immunefi, aim to reinforce the security of the system as it scales.
While FXRP offers more flexibility, it introduces new responsibilities. Agents must actively monitor collateral ratios to avoid liquidation. Users, too, must account for minting fees, potential slippage in liquidity pools, and redemption timing. Still, for XRP holders seeking deeper engagement in Web3 finance, FXRP provides a structured path to participation without compromising on asset exposure.
XRP’s Expanding Role in DeFi: FXRP, mXRP, and Broader Implications
The launch of FXRP on Flare represents a major expansion of XRP’s utility beyond payments. For years, XRP was primarily used for institutional settlement. Now, with FXRP, it can be used as collateral, liquidity, and yield-generating capital in DeFi. Minted through Flare’s FAssets protocol, FXRP allows users to participate in lending, staking, and smart contract-based applications while maintaining exposure to XRP.
This isn’t the only development reshaping XRP’s role. The launch of mXRP on Axelar extends XRP’s reach across Cosmos, Ethereum rollups, and other EVM chains. While FXRP is secured by agent-based collateral, mXRP uses cross-chain messaging to make XRP accessible throughout the interchain ecosystem. These parallel efforts allow XRP holders to choose between security models and ecosystems, depending on their goals.
Together, FXRP and mXRP reflect a shift in how XRP functions in Web3. No longer limited to value transfer, XRP now acts as programmable capital. This opens doors for decentralized stablecoins backed by XRP, yield vault integrations, and participation in multi-chain liquidity markets. In the coming weeks, stXRP—powered by Firelight—will unlock new yield strategies, vault integrations, and support Enosys Loans for XRP-backed stablecoins.
The broader implication is clear: XRP’s DeFi footprint is growing. Composable representations like FXRP and mXRP allow developers to build with XRP across multiple networks. Users gain more options to generate yield, post collateral, or access liquidity without leaving the XRP ecosystem. This evolution positions XRP as a flexible, multipurpose asset in today’s cross-chain financial infrastructure.
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