Flare’s FAssets and FXRP Deliver Another DeFi Push for XRP, Messari Notes

Flare’s FXRP Aims to Unlock DeFi Potential for XRP as Institutions Take Notice

Flare Network is charting a new path for XRP in decentralized finance (DeFi), with innovative solutions like FXRP poised to bring fresh utility to the popular token, according to a recent report from Messari.

FXRP, a fully collateralized and non-custodial representation of XRP, currently operates on Songbird—Flare’s canary network used for live testing before deploying features to the mainnet. Unlike traditional bridges relying on external middleware, Flare’s system directly validates off-chain data, enabling secure cross-chain activity for assets like FXRP.

The process of minting FXRP relies on a multi-collateral structure that pools FLR tokens, stablecoins, and agent funds, maintaining at least a 2x over-collateralization ratio. To bolster security and compliance, all participating agents are KYC-verified and monitored on-chain—a significant difference from typical DeFi bridges.

Though FXRP remains active on Songbird for now, a transition to Flare’s mainnet is expected soon. Canary networks like Songbird operate with real-value assets, allowing thorough testing of new technologies in a live environment before full-scale launches.

Signs of adoption are already emerging. Crypto trading platform Uphold, which holds 1.8 billion XRP, is preparing to integrate FXRP into its offerings. Separately, Nasdaq-listed VivoPower has announced plans to deploy $100 million in XRP onto the Flare network, signaling institutional interest in leveraging DeFi capabilities for XRP.

Looking ahead, Flare’s ecosystem is set to expand further with the launch of stXRP, a liquid staking derivative under development by Firelight Protocol. Modeled after stETH, stXRP will allow users to stake FXRP while preserving liquidity, enabling participation in DeFi applications and reward generation simultaneously.

If these projects materialize as planned, Flare could finally provide the DeFi integration long absent from XRP, one of crypto’s most widely held tokens.

“While the XRPL has features like escrows and payment channels, it lacks the ability to run complex smart contracts,” Messari analysts explained. “FAssets like FXRP bridge this gap, allowing XRP holders to engage in lending, borrowing, yield farming, and liquidity provisioning without sacrificing custody of their assets. This is crucial for XRP, which despite its large market cap and global reach, has had limited exposure to DeFi use cases until now.”

For institutions, XRPFi could transform previously static XRP reserves into productive assets capable of earning yield in a compliant DeFi environment.