XRP gets a Flare Boost

Back in November 2019, Ripple—via its investment arm Xpring—made a strategic investment in Flare Networks to support the integration of smart contract functionality with the XRP Ledger.

Nearly six years on, after extensive development, testing, and auditing, Flare has officially launched Version 1.2 of its network, activating the F Assets system on mainnet.

This upgrade enables XRP to be locked on the XRP Ledger and minted into FXRP—a wrapped version that can be used within Flare’s decentralised finance (DeFi) ecosystem. In a tongue-in-cheek nod to this evolution, the purpose-built environment enabling these capabilities has been named XRPFi.

What Does This Mean for XRP?

Initial indicators suggest strong demand. To ensure a stable launch, the Flare Foundation capped inflows at 5 million XRP for the first week. This conservative approach was designed to avoid overloading the system, particularly as the minting of FXRP requires FLR tokens (or stablecoins) to be sourced and posted as collateral.

The cap was hit within just four hours.

As previously reported, companies like VivoPower, Everything Blockchain, Uphold Exchange, and Crypto.com have committed to leveraging Flare’s infrastructure for their XRP treasuries. By converting XRP into FXRP, these firms aim to generate yield through decentralised lending, staking, and other DeFi protocols—all while retaining non-custodial control.

Looking Ahead

If adoption continues, we may start to see meaningful amounts of XRP locked out of circulation. As the XRPFi ecosystem develops, increased Total Value Locked (TVL) and broader functionality could begin to influence supply and demand dynamics—offering a potential tailwind for XRP.

A long-anticipated use case for XRP may finally be taking shape.