FXRP, Flare’s tokenized representation of XRP, is moving into credit markets as the network expands infrastructure designed to bring XRP into decentralized finance without moving the underlying asset from the XRP Ledger.
In August, a Morpho market developed with Sentora enabled FXRP to be supplied as collateral to borrow RLUSD on Ethereum. The integration adds borrowing to a set of applications that already use FXRP for liquidity, lending and yield strategies.
The development comes as Flare marks one year since FXRP launched on its mainnet on Sept. 24, 2025.
From XRP representation to credit
FXRP is an ERC-20 representation of XRP created through Flare’s overcollateralized FAssets system. The system uses Flare Data Connector data to verify activity on the XRP Ledger, allowing XRP to be represented on Flare and used in smart-contract applications.
FXRP initially focused on providing XRP liquidity within Flare’s decentralized finance ecosystem. Kinetic introduced lending markets, while SparkDEX, BlazeSwap and Enosys provided liquidity venues.
Other applications have since added different uses. Firelight uses FXRP in its on-chain coverage model, while Spectra provides fixed-rate and yield trading. Upshift’s earnXRP and Clearstar offer vault-based strategies, and Enosys has added collateralized debt functionality.
The expansion into borrowing gives FXRP another role in decentralized finance: collateral that can be used to obtain another asset rather than simply being supplied for liquidity or yield.
Flare builds access from XRP Ledger
Flare has also worked to reduce the steps required for XRP Ledger users to interact with applications on its network.
Flare Smart Accounts connect XRP Ledger activity with applications on Flare. A February 2026 integration with Xaman enabled access to earnXRP, while subsequent wallet updates expanded supported workflows. The system is designed to allow supported transactions to be authorized through a single XRP Ledger signature rather than requiring users to manage separate transaction flows across networks.
In May, FAssets v1.3 added destination-tag minting, a change aimed at making FXRP integrations easier for exchanges and custodians.
FXRP has also expanded beyond Flare, with deployments into blockchain environments including Ethereum and Base.
FXRP reaches one-year milestone
FXRP went live on Flare on Sept. 24, 2025, through the FAssets v1.2 release. Its initial 5 million FXRP minting cap was reached in about four hours. Over the following year, the ecosystem expanded from basic minting and liquidity toward staking, lending, borrowing, and yield products.
That development reflects a broader effort to make XRP usable in applications that require programmable assets and collateral while retaining a link to XRP Ledger activity.
“The thing worth taking from this year is not that XRP can be used in more places,” Flare CEO Hugo Philion said. “It is that an asset issued on one chain can become working capital without leaving it.”
Flare links network activity to token economics
The expansion of FAssets also feeds into changes to Flare’s token economics.
FIP.16 reduced annual FLR issuance from 5% to 3% and lowered the annual issuance cap from 5 billion FLR to 3 billion FLR.
Fees generated from activities including FAssets minting and Flare Data Connector usage can be directed to the Flare Income Reinvestment Entity, or FIRE. Greater use of FAssets and related network infrastructure could therefore increase fees flowing into the mechanism, although its ability to offset FLR issuance depends on the scale of network activity.
Network infrastructure expands beyond XRP
Flare is also developing Flare Confidential Compute and Protocol Managed Wallets as part of a broader expansion of its data and smart-contract infrastructure. The company says its data protocols, including the Flare Data Connector and Flare Time Series Oracle, are integrated into the network rather than operating solely as external services.
For FXRP, that infrastructure provides the data and verification layer needed to represent XRP in applications on Flare and other supported environments.
The next stage of the ecosystem is increasingly centered on what that representation can do once it is available as collateral, liquidity, and working capital across decentralized applications.
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