Flare Network is set to enhance XRP’s role in decentralized finance (DeFi) through FXRP, a fully collateralized, non-custodial version of XRP operating on Songbird. A report by Messari highlights increased interest from both retail and institutional sectors.

Overview of FXRP

• FXRP offers a multi-collateral mechanism and KYC compliance ensuring secure DeFi transactions.
• Upcoming stXRP launch will support liquid staking, enabling XRP holders to earn rewards while keeping liquidity intact.

Flare’s unique offerings facilitate off-chain data validation, securing FAssets such as FXRP and enabling essential cross-chain transactions—vital for a decentralized financial ecosystem surrounding XRP.

Institutional Interest

Trading platform Uphold, which currently manages 1.8 billion XRP, is eager to incorporate FXRP. In addition, NASDAQ-listed VivoPower has committed $100 million in XRP for deployment on the Flare network.

Liquid Staking and Future Prospects

The Firelight Protocol is preparing to unveil stXRP, a liquid staking derivative for FXRP, modeled after stETH.

If launched as planned, Flare may unlock DeFi utility for XRP, which traditionally has seen limited applications despite its high market cap and wide acceptance. As noted in the report, “While the XRPL has native functions like escrows, checks, and payment channels, it cannot implement complex smart contracts.”

Therefore, FAssets enable XRP holders to engage in various DeFi activities (commonly termed XRPFi) like lending, borrowing, and yield farming, enhancing the asset’s utility without relinquishing custody of underlying assets.

For institutional investors, XRPFi provides opportunities to generate returns on their traditionally static XRP assets.