Flare has activated FXRP on its mainnet, allowing XRP to be wrapped and deployed across decentralized finance protocols. The rollout begins with capped minting and incentive pools, marking what Flare calls the start of an “XRP DeFi awakening.”
Summary
- Flare has officially activated FXRP on its mainnet, allowing XRP holders to mint a fully composable, non-custodial version of the token for use across DeFi protocols.
- The rollout, capped at 5 million FXRP in its first week, pairs liquidity incentives with a carefully measured launch, positioning FXRP as the backbone of Flare’s FAssets ecosystem.
- Beyond simply wrapping XRP, the project envisions FXRP powering lending, stablecoin minting, and yield-generating products, laying the foundation for what Flare calls the “XRPFi flywheel” and signaling a broader push to bring major assets like Bitcoin and Dogecoin into its DeFi stack.
According to a Sept. 24 announcement, the Layer 1 blockchain has launched the first live instance of its FAssets protocol with FXRP v1.2. This enables XRP holders to mint a wrapped, composable version of the asset on the Flare network.
Flare said the initial rollout is deliberately measured, with a minting cap of 5 million FXRP in the first week to ensure network stability. To bootstrap liquidity, the Flare Foundation is directing rFLR token incentives to key decentralized exchange pools, including on SparkDEX and BlazeSwap, with target annual percentage rates for some pools reaching 50%.
How FXRP brings XRP into DeFi’s core
For XRP holders, the primary gateway to this new functionality is through the direct minting of FXRP. The process requires moving XRP to a self-custody wallet like Bifrost or Ledger that supports both the XRP Ledger and Flare.
From there, Flare said users can interact with designated minting agents to create a one-to-one representation of their XRP on the network. The team emphasized that this method is intentionally non-custodial, contrasting with previous wrapped versions that relied on centralized entities.
“They are one-to-one representations of the original asset (e.g. XRP to FXRP) secured through an overcollateralized system of independent agents and secured by Flare’s enshrined data protocols,” the team wrote.
Flare positions FXRP as a game-changer not merely because of the native composability it grants XRP. Unlike isolated bridges, the wrapped asset is designed as a foundational layer within Flare’s DeFi stack. This means that once minted, it can be seamlessly integrated as collateral for lending on protocols like Enosys Loans, used to mint an XRP-backed stablecoin, or supplied to liquidity pools without requiring custom integrations.
The upcoming launch of liquid-staked XRP, stXRP, is poised to further accelerate this by creating a yield-bearing derivative that can power a broader range of financial products, forming what the project terms the “XRPFi flywheel.”
The successful deployment of FXRP serves as proof of concept for Flare’s broader ambitions. According to its public roadmap, the FAssets system is designed to accommodate other significant non-smart contract assets, with Bitcoin and Dogecoin identified as the next in line for integration.
Flare’s native token, FLR, reflected the heightened attention. Data from CoinMarketCap showed FLR, which currently holds a market capitalization of approximately $1.9 billion, trading near $0.027 and registering a price increase of nearly 13% in the 24 hours following the announcement.
