Flare Launches FXRP: Expanding XRP's Utility in DeFi

Flare has officially introduced FXRP on its mainnet, enabling XRP to be wrapped and utilized within decentralized finance (DeFi) protocols. This rollout features capped minting and incentive pools, marking what Flare describes as the beginning of an “XRP DeFi awakening.”

Key Takeaways

Flare has launched FXRP, allowing XRP to be wrapped for use in DeFi.
The minting of FXRP will initially be limited to 5 million tokens to maintain stability.
Users can mint FXRP by moving XRP to self-custody wallets compatible with Flare.
FXRP will serve as a foundational asset within Flare’s DeFi ecosystem.
The launch of stXRP, a liquid-staked version of XRP, is expected to enhance the range of financial products available.
Flare's native token, FLR, has seen a price increase following the announcement.

Flare debuts wrapped XRP token, FXRP

FXRP: Bridging XRP to DeFi

For holders of XRP, the primary access point to this innovative functionality is through the direct minting of FXRP. To begin, users need to transfer their XRP to a self-custody wallet, such as Bifrost or Ledger, that supports both the XRP Ledger and the Flare network.

Once in the self-custody wallet, Flare indicates that users can engage with designated minting agents to create a one-to-one representation of their XRP on the network. The Flare team emphasized that this approach is intentionally non-custodial, differing from earlier wrapped versions that depended on centralized services.

Flare regards FXRP as a transformative asset—not only due to its seamless composability but also because it serves as a foundational component within Flare’s DeFi framework. This unique feature allows FXRP to be easily integrated as collateral for lending protocols like Enosys Loans, used for minting XRP-backed stablecoins, or provided to liquidity pools without the need for complex migration processes.

Additionally, the imminent introduction of liquid-staked XRP, known as stXRP, is set to further promote this ecosystem by enabling yield-generating derivatives. This innovation aims to create a more extensive range of financial products, a concept that Flare has referred to as the “XRPFi flywheel.”

The launch of FXRP demonstrates Flare's bigger vision. Their public roadmap outlines the FAssets system's capability to incorporate other significant non-smart contract assets, with Bitcoin and Dogecoin being the next anticipated additions.

Flare's native token, FLR, has garnered increased interest since the FXRP announcement. As reported by CoinMarketCap, FLR, which currently boasts a market capitalization of around $1.9 billion, traded close to $0.027 and experienced a nearly 13% price surge within 24 hours of the news.