FXRP and stXRP Signal DeFi Breakthrough for XRP as Flare Gains Momentum
XRP’s long-standing absence from decentralized finance (DeFi) may finally be coming to an end, thanks to Flare Network’s FXRP integration and a growing ecosystem designed to unlock new utility for the widely held token.
According to a recent report from Messari, Flare Network is laying the foundation for XRPFi—a new wave of XRP-based DeFi applications—by leveraging FXRP, a fully collateralized, non-custodial version of XRP launched on Songbird, Flare’s experimental canary network.
Unlike traditional DeFi bridges, Flare validates off-chain data natively, without middleware. This architecture enables secure FAssets like FXRP to move across blockchains while remaining fully backed. FXRP minting uses a multi-asset collateral pool—drawing from FLR, stablecoins, and agent funds—ensuring over 200% collateralization. Notably, all minting agents are subject to KYC and on-chain monitoring, offering compliance features rarely seen in DeFi infrastructure.
Though FXRP is currently live only on Songbird, Flare’s mainnet deployment is imminent. Songbird operates like a live environment with real economic activity—unlike testnets, which use valueless tokens—allowing rigorous testing before full rollout.
Momentum is already building. Crypto platform Uphold, which holds 1.8 billion XRP, is preparing to integrate FXRP. Meanwhile, VivoPower, a NASDAQ-listed firm, has pledged $100 million in XRP for deployment within Flare’s ecosystem.
Looking ahead, Flare is poised to introduce stXRP, a liquid staking derivative developed by Firelight Protocol. Modeled after stETH, stXRP will allow users to stake FXRP while retaining liquidity and composability across DeFi protocols on Flare.
This could mark a turning point for XRP, a token with broad adoption but historically limited use in DeFi.
“XRPL includes useful native features, but lacks support for complex smart contracts,” noted Messari analysts. “FAssets like FXRP fill this gap, enabling holders to lend, borrow, farm yield, and provide liquidity without giving up control of their assets.”
The report adds that for institutions, XRPFi may offer long-awaited utility—transforming idle XRP holdings into yield-generating assets in a regulated DeFi setting.
