Layer 1 blockchain Flare Network has launched FXRP, a wrapped version of XRP that can now be used in decentralized finance (DeFi) applications.
FXRP is the first live deployment of Flare’s "FAssets" system, which turns non-smart contract tokens like XRP into "overcollateralized" assets that can interact with DeFi protocols. XRP holders can mint FXRP — a one-to-one representation of XRP — by depositing collateral through Flare’s network of "independent agents," enabling the asset to be traded, lent, or supplied as liquidity across Flare-based platforms.
The rollout begins with a cap of 5 million FXRP in the first week, with limits set to increase gradually. Users can mint FXRP directly or acquire it through decentralized exchanges such as SparkDEX, BlazeSwap, and Enosys. Wallets like Luminite and Oxen Flow also support FXRP minting, swapping, and bridging.
To attract liquidity, FXRP pools will initially receive incentive rewards in rFLR, or Reward Flare, the network’s native reward token distributed by the Flare Emissions Committee. At launch, liquidity pools such as FXRP/USDT0 on SparkDEX, BlazeSwap, and Enosys are targeting annual percentage rates (APRs) of up to 50%, while collateralized borrowing options are also being introduced.
'XRP DeFi awakening'
Flare is positioning the FXRP launch as "the start of the XRP DeFi awakening." While wrapped versions of XRP have existed before, they were custodial and saw limited traction.
"The difference here is that FXRP is designed to be non-custodial and over-collateralized, with onchain, protocol-level verification rather than trusting a single custodian," Filip Koprivec, chief product officer at Flare, told The Block. "Flare’s enshrined data protocols — Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC) — provide the real-time price and state verification needed to keep the system decentralized and auditable onchain."
On security, Flare said its FAssets system has undergone audits from firms including Zellic and Coinspect, supported by bug bounty programs and 24/7 monitoring by Hypernative.
The FXRP debut comes amid a broader push to make XRP usable in DeFi. Earlier this week, Midas partnered with interoperability protocol Axelar to launch mXRP, a tokenized XRP product targeting a base yield of up to 8%, with the potential for higher returns through DeFi integrations.
"FXRP itself doesn't pay yield. It's a base asset you can deploy into DeFi on Flare (e.g., lending, LPing, soon liquid staking) to earn yield," Koprivec said.
Flare also plans to introduce wrapped versions of Bitcoin and Dogecoin through its FAssets system, according to its website.
Flare's token, FLR, is currently the 80th largest cryptocurrency with a market cap of $1.9 billion. It is trading at roughly $0.03, up nearly 8% in the past 24 hours, according to The Block’s FLR price page.
