Flare, the Layer 1 blockchain, has officially launched FXRP v1.2 on its mainnet, enabling XRP holders to mint a wrapped, composable version of the asset for decentralized finance (DeFi) applications. The rollout, announced on Sept. 24, begins with capped minting and targeted incentive pools, marking the start of what Flare calls an “XRP DeFi awakening.”
The launch uses Flare’s FAssets protocol, which allows users to deploy XRP in lending platforms, liquidity pools, and other DeFi products without relying on centralized custodians. The initial minting cap is set at 5 million FXRP in the first week to ensure stability. To bootstrap liquidity, the Flare Foundation is directing rFLR token incentives to key decentralized exchange pools, such as SparkDEX and BlazeSwap, with some pools targeting up to 50% annual yield.
How FXRP brings XRP to DeFi
To participate, XRP holders must move assets to self-custody wallets like Bifrost or Ledger that support both the XRP Ledger and Flare. From there, users can mint FXRP via designated minting agents, creating a one-to-one representation of XRP on Flare. This approach is non-custodial, contrasting with previous wrapped versions that relied on centralized entities.
They are one-to-one representations of the original asset secured through an overcollateralized system of independent agents and Flare’s enshrined data protocols.
Once minted, FXRP can be used as collateral for lending, to mint an XRP-backed stablecoin, or supplied to liquidity pools without requiring custom integrations. Flare plans to further expand its DeFi ecosystem with stXRP, a liquid-staked XRP derivative that will generate yield and enable more complex financial products, forming the “XRPFi flywheel.”
Flare’s roadmap and market impact
The successful deployment of FXRP demonstrates Flare’s ambition to integrate other major non-smart contract assets, with Bitcoin and Dogecoin slated as future additions to the FAssets system.
Following the announcement, Flare’s native token FLR saw notable market movement. CoinMarketCap data showed FLR trading near $0.027, up nearly 13% in 24 hours, reflecting heightened market attention. The token currently has a market capitalization of around $1.9 billion.