XRP, one of the most recognizable digital assets around the globe, can now actually turn into programmable finance as regulatory clarity settles in. But the technical setup matters just as much.
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FXRP, the Wrapped version of the OG token on Flare, is actively trying to put this in practice – bringing XRP onto Flare’s Network as active capital. Flare Network handles this with the Smart Account mechanics – shielding the user from the burdens of managing bridge connections.
XRP’s DeFi Grows Beyond Yield-Chasing: Here’s How
This puts Flare at the pedestal of XRPFi, garnering beyond $200 million in total value locked (TVL) during phase one. Anchoring a $440 million DeFi ecosystem overall, Flare’s Network registered beyond 3.4 million transactions in FXRP so far. While the first phase proved demand for XRP on decentralized finance (DeFi) platforms, flexibility is key.
With the second phase specialized around scaling XRPFi to broader horizons, the bottlenecks exposed by the first phase will be tackled:
- Strategy depth – the new multi-strategy mandate efficiently combines off-chain & on-chain return sources.
- Distribution – the FAssets 1.3 upgrade enables direct FXRP minting via the original XRPL destination tags with no bridge needed.
- UX – a standalone decentralized application (dApp) empowers Web3 dwellers to sign in directly via their XRPL crypto wallet.
APY, the usual figure staking products are rated by, doesn’t really tell the full story. There’s a whole bunch of other key components that fall into the full mix: liquidity, credit, collateral, hedging, risk transfer, liquid staking & structured products.
The hunt for the highest near-term rates might make XRPFi somewhat shallow – Flare’s vision is to expand it into a well-connected system where XRP can seamlessly move between all types of financial use cases & risk profiles.
The new XRPFi vision is crystal clear: while XRP remains the key asset & settlement layer, Flare provides the compute, necessary data & the execution layer.
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Flare Network launched the next phase of XRPFi with the FXRP Genesis Distribution now live. Eligible Flare participants can connect their wallet and claim their FXRP allocation right away.
It lets XRP holders send XRP directly from the XRPL (including from exchanges that support destination tags) and have FXRP minted straight onto Flare — no extra bridging steps or complicated interfaces required.
This removes major friction and makes it much easier for regular XRP holders to move their tokens into DeFi on Flare for yield, lending, staking, and liquidity pools while keeping the original XRP safe on the XRPL.
Anyone who qualifies under the Flare Network distribution can claim FXRP at flare-phase2.info. The upgrade also opens the door for bigger exchange integrations and institutional flows in the near future.
