Messari Claims XRP Gets Another DeFi Boost Thanks to Flare's FAssets and FXRP
Messari Says XRP Gets New Momentum in DeFi Thanks to FAssets and Flare's FXRP
Trading platform Uphold, which holds 1.8 billion XRP, is considering integrating FXRP, while NASDAQ-listed VivoPower has pledged $100 million in XRP for use on the Flare network.
Author: Shaurya Malwa | Edited by Parikshit Mishra , Jun 17, 2025, 2:00 PM.
Key points:
- Flare Network is helping to bring XRP into the world of decentralized finance by introducing FXRP, a fully collateralized representation of XRP on the Songbird platform.
- FXRP uses a multi-tiered collateral system and KYC compliance to ensure the security and compliance of DeFi transactions.
- The imminent launch of stXRP will enable liquid staking, allowing XRP holders to earn rewards while maintaining liquidity.
According to a report from Messari, Flare Network is driving deeper adoption of XRP in decentralized finance (DeFi) with FXRP — a fully collateralized, non-custodial representation of XRP on the Songbird platform — and an expanding set of infrastructure that is generating interest from both retail and institutional participants.
Flare performs off-chain data verification without the need for external software. This framework secures FAssets like FXRP and enables cross-chain transactions, which is key to building a decentralized financial ecosystem around XRP.
At the protocol level, FXRP minting uses a multi-collateral system, combining stablecoins, FLR, and agent funds to maintain an overcollateralization ratio of 2x or higher. All agents involved are KYC-certified and audited on-chain, adding a level of compliance not typically seen in DeFi bridges.
While FXRP is currently running on Songbird (Flare’s canary network), a mainnet rollout is reportedly imminent. In blockchain terms, a canary network is designed to test new features and protocols before they are rolled out to the mainnet, but acts as a fully functional, live network (as opposed to a testnet, where assets have no financial value).
Interest is already growing: Uphold, a trading platform with 1.8 billion XRP, is exploring the possibility of integrating FXRP. In addition, Nasdaq-listed VivoPower has committed $100 million in XRP to be used on the Flare network.
Liquid staking is coming soon. Firelight Protocol plans to launch stXRP, a liquid staking derivative for FXRP.
Modeled after stETH, the token will be transferable between DeFi Flare applications and will allow holders to maintain liquidity while earning rewards, greatly expanding XRP's use cases in the ecosystem.
If the launch is successful, Flare will finally be able to bring DeFi functionality to one of the most popular, yet underutilized, crypto tokens.
“While XRPL has its own features such as escrows, checks and payment channels, it cannot implement complex smart contracts,” analysts at Messari said in a report.
“FAssets address this shortcoming by allowing XRP token holders to participate in a full range of DeFi (also known as XRPFi) activities such as lending, borrowing, yield farming, and liquidity provision without losing the ability to hold their underlying assets. This is especially important for XRP, which has historically had limitations in its DeFi applications despite its significant market cap and global adoption,” the analysts added.
For institutions, XRPFi provides a way to generate income from their XRP holdings, which have traditionally been considered static assets.
