From Minting to Vaults: FXRP Unlocks New Utility for XRP on Flare

The Flare mainnet has launched its first Fasset, FXRP v1.2, to enable XRP holders to use their assets in decentralized finance.

###The Dawn of XRP DeFi: Flare’s Fassets Go Live

The Flare mainnet has officially launched its first Fasset, FXRP v1.2, marking a significant milestone for the XRP community. This integration allows XRP holders to mint FXRP on Flare and participate in the decentralized finance (DeFi) ecosystem.

According to a media release, Fassets are a core protocol on the Flare network designed to bring non-smart contract-enabled cryptocurrencies into the DeFi space. They function as one-to-one representations of the original asset, secured through an overcollateralized system of independent agents and Flare’s on-chain data protocols.

Hugo Philion, co-founder and CEO of Flare, explained how XRP can be used permissionlessly on Flare:

“ XRP can be used on Flare in non-custodial and permissionless DeFi. It can also be placed into a vault, where a risk curator can generate returns on your behalf through strategies that are entirely onchain, offchain, or a hybrid of both. Flare has some of the biggest risk curators in the space building vault-based strategies, and we offer the full spectrum of opportunities in one place.”

Once minted, FXRP can be freely used across the Flare ecosystem, allowing protocols to integrate it directly as a native building block without requiring complex workarounds.

###A Multi-Layered Approach to Security

To address security concerns, the Flare’s Fassets system is said to prioritize security through a multi-layered strategy, including four independent audits by firms such as Zellic and Coinspect, Immunefi bug bounties and community reviews. It is also continuously monitored by Hypernative, with rapid response protocols in place to safeguard its complex, high-value operations like trustless bridging and multi-chain minting.

Meanwhile, the media release explains that XRP holders seeking FXRP can acquire it through minting—the most straightforward method. This process requires transferring XRP to a self-custody wallet compatible with both Flare and XRPL, followed by minting through platforms such as AU or Oracle Daemon.

In addition to minting, holders can swap XRP for FXRP on decentralized exchanges such as SparkDEX, Blazeswap, or Enosys. However, users must already have XRP on Flare in order to perform the swap.

To encourage adoption and sustainable growth, Flare will direct launch incentives in the form of rFLR tokens to specific DeFi pools that contribute significantly to on-chain activity. At launch, these incentives will be allocated to pools like Kinetic FXRP Supply, Kinetic FXRP/ USDT₮0 Isolated Pool, and various liquidity pools on DEXes.

In the coming weeks, the ecosystem is set to expand with deeper integrations powered by FXRP and stXRP (liquid staked XRP), a new asset from the upcoming Firelight project. This will enable FXRP to be used as collateral for loans and introduce curated vaults for yield-generating strategies.

Once Firelight launches and stXRP becomes available, the full XRPFi flywheel will accelerate, driving new layers of utility for XRP on Flare. This collaboration will engage more partners, expand collateral options, and build a trustless DeFi ecosystem.