Flare Unlocks XRP’s Trapped Value

The wait is over—XRP is finally entering the world of decentralised finance (DeFi), thanks to the Flare Network’s new F-Asset protocol. For years, XRP holders have sought ways to put their tokens to work beyond simple payments. Flare has now opened that door.

So how does it work?
The F-Asset system allows you to mint XRP into a wrapped version that operates on the Flare Network. Once minted, this representation of XRP can be used across DeFi applications for lending, earning yield, or contributing to liquidity pools. To enable this, users must post collateral—mainly in FLR tokens, with a smaller portion in stablecoins—providing an insurance layer that secures the system.

Early figures highlight the level of interest: over 604.95 million FLR tokens are already locked as collateral for just 7.5 million XRP minted so far. That’s a significant amount of FLR removed from circulation. With FLR comprising more than 75% of the collateral pool, each minted XRP adds to FLR demand.

Theoretical modelling suggests that just 919 million XRP—valued at AUD$4.50—could exhaust the entire FLR circulating supply, based on a current FLR price of AUD$0.0397. That’s out of a total XRP supply of 60 billion. How much of that will be drawn in by the prospect of yield?

Institutional players, exchanges, and XRP treasury strategy firms are yet to make their move. Some have already signed contracts with the Flare Foundation to utilise the network for yield-generating strategies.

And the rollout is accelerating.
Flare is releasing XRP minting in weekly tranches:

• Sept 22: 5 million XRP
• Sept 29 – Oct 5: 10 million XRP
• Oct 6 – 12: 20 million XRP
• Oct 13 – 19: 35 million XRP
• Oct 20 – 26: 50 million XRP
• Oct 27 – Nov 2: 70 million XRP
• Nov 2 onwards: Unlimited?

Retail interest has been immediate—a recent 2.5 million XRP tranche was filled in under two hours. This kind of response signals strong demand from holders looking to put their XRP to work through DeFi on Flare.

Institutions are also preparing to enter. The upcoming launch of Firelight on Flare will offer infrastructure for large-scale yield strategies. As these tools come online, demand for both XRP and FLR is likely to increase further.

For XRP holders, this marks a major shift. Instead of sitting idle, your XRP can now participate in a secure, collateralised ecosystem backed by real usage and growing demand. Each stage of the rollout unlocks more potential.

Flare CEO Hugo Philion recently noted that the F-Asset protocol could become one of the top 10 apps on the Flare Network. There are also early signs of additional value being built, such as the potential introduction of FBTC. If that becomes a reality, it could further reshape the supply-demand fundamentals for FLR.

Ainslie is pleased to announce that FLR tokens are now available for purchase and secure storage through our institutional-grade solution.
Speak with our team to learn more about FLR and the Flare Network.

Visit flare.network for further details.