TLDR
- Flare bridges $43M worth of XRP, enabling FXRP minting for DeFi yield.
- The total value locked (TVL) in Flare’s FAssets grew by 28% in September 2025.
- FXRP minting caps are fully consumed each week, showing high demand.
- Institutional adoption expected as FXRP supply nears $100M for DeFi growth.
Flare Network has successfully bridged $43 million worth of XRP to its blockchain through the FAssets project, marking a pivotal moment in the integration of XRP into decentralized finance (DeFi). This move allows XRP holders to mint FXRP tokens, enabling them to access yield-generating opportunities without needing to liquidate their assets. The growing demand for FXRP is reshaping the landscape of DeFi, drawing both retail and institutional interest.
Flare’s FAssets Project Expands DeFi Use for XRP
Flare’s FAssets project provides a new method for XRP holders to access decentralized finance without selling their XRP. By minting FXRP, a wrapped version of XRP, users can participate in various DeFi activities like lending and staking.
This protocol allows XRP holders to retain ownership while still engaging in the DeFi ecosystem. As of now, $43 million worth of XRP has been bridged to Flare, marking a substantial entry for XRP into DeFi spaces.
According to Flare co-founder Hugo Philion, this surge in demand for FXRP demonstrates the growing interest in leveraging XRP for yield generation. By minting FXRP tokens, users can earn rewards from their XRP holdings while avoiding the need to liquidate. The bridging process requires XRP to be transferred to a self-custody wallet, where FXRP is minted. Tools like Oracle Daemon and Agent Utility (AU) are used in this process, ensuring a smooth transfer.
FXRP Demand Surges and TVL Grows Rapidly
The surge in demand for FXRP has significantly impacted the total value locked (TVL) in Flare’s FAssets protocol. Since the protocol’s launch in September 2025, the TVL has increased by 28%. The demand for FXRP has reached a point where the 5 million weekly minting cap is being fully consumed within just hours. This high level of adoption is helping Flare establish itself as a key player in the growing DeFi ecosystem. As of now, 15 million FXRP tokens have been minted.
This rapid adoption points to a growing interest in XRP as a viable asset for DeFi. The ability to use XRP in DeFi applications, without selling or trading it, appeals to a broad range of users, including retail investors. However, experts believe that institutional clients will be the next to drive the growth once the FXRP supply exceeds $100 million. These institutional players may further solidify XRP’s role in DeFi.
Core Vault Mechanism and Future Expansion Plans
The Core Vault mechanism, introduced in the FAssets v1.1 upgrade, is a crucial innovation aimed at improving capital efficiency within the Flare network. This system allows collateral to be reused for minting FXRP tokens, enhancing liquidity and reducing capital strain.
The Core Vault also features enhanced security measures such as time-locked escrow accounts and multi-signature authorization to protect the system from potential risks.Flare plans to further expand the FAssets ecosystem by integrating additional assets and launching liquidity incentive programs.
These efforts are aimed at increasing the liquidity available to DeFi users and attracting a broader range of investors. Moreover, Flare is preparing to migrate the FAssets protocol from Songbird to the Flare mainnet. This transition will offer FXRP access to a wider variety of DeFi applications, which may further boost its use and adoption.
Looking Toward Institutional Adoption and Regulatory Clarity
Flare’s expansion plans include not only enhancing the technology behind FAssets but also preparing for the eventual institutional adoption of FXRP. As the FXRP supply approaches $100 million, experts believe that institutional interest in the asset will increase. Institutional players are likely to be drawn to the security, liquidity, and yield-generation opportunities that FXRP provides in the broader DeFi market.
In addition, the regulatory landscape for XRP and related financial products remains in development. The clarity around XRP’s legal status will play a crucial role in the future of XRP-based DeFi protocols. As regulatory conditions evolve, the adoption of XRP in DeFi could expand even further, providing more opportunities for both retail and institutional investors.
The bridging of $43 million worth of XRP to Flare is a major step in XRP’s integration into the DeFi world. As more users mint FXRP and explore yield-generation opportunities, Flare’s FAssets protocol is poised to play a central role in the future of XRP in decentralized finance.
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