FXRP is a one-to-one, overcollateralized representation of the XRP token on the Flare Network. It is the first asset created using Flare's FAssets system, a protocol designed to enable non-smart contract cryptocurrencies to be utilized in decentralized finance (DeFi) applications in a non-custodial manner.

Overview

FXRP was developed by the Flare Network to integrate XRP, a cryptocurrency native to the XRP Ledger, into Flare's EVM-compatible DeFi ecosystem. The primary objective is to unlock new utility for XRP holders, allowing them to engage in activities such as lending, borrowing, providing liquidity, and participating in liquid staking without relying on a centralized custodian or intermediary. The token is designed to function as a fungible ERC-20 asset on the Flare blockchain, making it compatible with a wide range of smart contracts and DeFi protocols. ^{[1] [2]}

The FAssets system, which underpins FXRP, operates on a non-custodial and overcollateralized framework. This means that users can mint FXRP without surrendering control of their underlying assets to a third party, and the system maintains reserves valued higher than the FXRP in circulation to ensure its stability and security. The initiative is part of a broader strategy by Flare referred to as "XRPFi," which aims to establish a robust and composable role for XRP within the DeFi space. ^{[3] [4]}

History

The conceptual origins of the project can be traced back to a 2018 conversation between Flare co-founder Hugo Philion and Ripple's Chief Technology Officer, David Schwartz, which Philion cited as influential in the project's development. Before its mainnet deployment, the FAssets protocol and FXRP underwent extensive testing on Songbird, Flare's canary network, where the launch version, v1.2, passed its final security milestones. ^{[5] [1]}

FXRP officially launched on the Flare mainnet on September 24, 2025. To ensure a stable and secure rollout, the launch was managed with a gradual approach, implementing an initial minting cap of 5 million FXRP for the first week, with plans to increase this limit over time. The launch saw significant early adoption, with reports indicating that over $7.1 million worth of XRP was locked in Flare's vaults and 5 million FXRP were minted within the first few hours of availability. ^{[3] [6]}

Technology

FXRP's functionality is based on the FAssets protocol, a system developed by Flare to create trustless, fungible ERC-20 representations of assets from non-smart contract blockchains.

FAssets System

The FAssets protocol is the core technology that enables the creation of FXRP. It is designed to handle cross-chain processes, including collateral management and trustless bridging, to securely bring assets like XRP onto the Flare Network. The system is architected to be non-custodial, allowing users to mint and redeem FAssets without relinquishing control of their original tokens to a centralized entity. Flare plans to expand the FAssets system to support other major non-smart contract cryptocurrencies, including Bitcoin (BTC) and Dogecoin (DOGE). ^{[4] [5]}

Minting and Redemption

Users can create FXRP through a process known as minting. This involves holding native XRP in a self-custody wallet that supports both the XRP Ledger and the Flare Network, such as Ledger or Bifrost. Through dedicated dApps or portals, users deposit their XRP, which is then locked as collateral through a network of independent "agents" on Flare. This action mints an equivalent amount of FXRP on the Flare Network. The protocol is also designed to facilitate redemption, allowing users to burn their FXRP to unlock and receive their original XRP back on the XRP Ledger. ^{[2] [1]}

Core Architecture and Security

The security of the FXRP system relies on its overcollateralized design and Flare's native data protocols. The system ensures that the value of the collateral held by agents exceeds the value of the FXRP in circulation. This framework is supported by two key on-chain data services:

• Flare Time Series Oracle (FTSO): Provides decentralized and reliable real-time price data for assets like XRP.
• Flare Data Connector (FDC): Provides state verification from external blockchains, confirming transactions on the XRP Ledger.

These protocols allow the system to operate in a decentralized and auditable manner, without depending on a single trusted data source. To further ensure its integrity, the FAssets protocol has undergone extensive security verification measures. ^[3]

These security measures include:

• Audits: The system has undergone at least four independent security audits conducted by firms including Zellic and Coinspect.
• Community Review: The codebase was subject to a community-led review through the Code4rena platform.
• Bug Bounties: Active bug bounty programs are managed via Immunefi to incentivize security research.
• Continuous Monitoring: The protocol and its integrated applications are under 24/7 monitoring by the security firm Hypernative.

This multi-layered security approach was designed to mitigate risks and ensure the safety of user funds within the protocol. ^{[7] [4]}

Adoption and Incentives

To encourage adoption and bootstrap liquidity upon launch, the Flare Network initiated an incentive program. The Flare Emissions Committee was tasked with distributing the network's native reward token, rFLR, to users who participated in the FXRP ecosystem. At launch, liquidity pools such as FXRP/USDT₮0 on supported decentralized exchanges offered Annual Percentage Rates (APRs) of up to 50%. Lending markets on platforms like Kinetic offered supply APRs of approximately 5%. These incentives were designed to attract early users and establish a deep liquidity base for FXRP across the Flare DeFi ecosystem. ^{[3] [1]}

In addition to direct minting, users can acquire FXRP by swapping other tokens for it on Flare-based decentralized exchanges. The launch was also supported by an announcement of a $100 million investment from VivoPower aimed at amplifying XRP's functionality in DeFi markets, signaling institutional interest in the initiative. ^{[2] [6]}

Use Cases

FXRP is a base asset that does not generate yield on its own; instead, it is designed to be deployed across various DeFi protocols on the Flare Network to earn yield and access financial services.

Current Use Cases

• Trading and Liquidity Provision: FXRP can be traded on decentralized exchanges (DEXs) and supplied to liquidity pools, allowing users to earn trading fees and liquidity mining rewards.
• Lending and Borrowing: Users can supply FXRP to lending protocols to earn interest or use it as collateral to borrow other crypto assets.

Future Use Cases

• Liquid Staking: A liquid staking derivative, stXRP, is planned for release by the project Firelight. This will allow users to stake their FXRP to earn rewards while receiving a liquid token that can be used in other DeFi applications.
• Stablecoins: There are plans for FXRP to be used as collateral for minting Collateralized Debt Position (CDP)-based stablecoins on platforms like Enosys Loans.
• Structured Products: The development roadmap includes the creation of yield vaults and other structured financial products built around stXRP and FXRP.

These expanding use cases aim to deepen the integration of XRP within the broader DeFi landscape. ^{[7] [4]}

Ecosystem

At its launch, FXRP was supported by a range of protocols and wallets within the Flare ecosystem.

• Decentralized Exchanges (DEXs): SparkDEX, BlazeSwap, and Enosys.
• Lending Protocols: Kinetic.
• Wallets: Wallets supporting the minting process include Ledger and Bifrost. General-purpose wallets that support the token include Luminite and Oxen Flow.

The integration with these platforms provided immediate utility for FXRP upon its release. ^{[5] [2]}

Commentary

The launch of FXRP has been described by key figures as a significant milestone for both the Flare Network and the XRP community. Hugo Philion, co-founder of Flare, stated, "This is a momentous moment and both the culmination of work we have been doing since the beginning and also the start of the next phase." ^[5]

Filip Koprivec, Chief Product Officer at Flare, highlighted the technical design, noting, "The difference here is that FXRP is designed to be non-custodial and over-collateralized, with onchain, protocol-level verification rather than trusting a single custodian." ^[3]

However, some community members have also issued warnings regarding the risks associated with high-yield DeFi products. XRP validator Vet_XO cautioned investors, stating, "Every ounce of yield is paid by some amount of risk... some projects will rug and go belly up," reminding participants of the inherent risks in the decentralized finance space. ^[5]