Flare on September 24, 2026, marked one year since FXRP, the first FAsset, went live on mainnet as a programmable version of XRP. The XRP-backed token has since moved from minting and liquidity into staking, lending, yield strategies and cross-chain credit.
The Brief
- FXRP launched through FAssets v1.2, and its initial 5 million FXRP minting cap filled in approximately four hours.
- Flare Smart Accounts now let XRP Ledger users run supported Flare workflows with a single XRP Ledger signature.
- A Morpho market built with Sentora lets holders supply FXRP as collateral to borrow RLUSD on Ethereum.
- Flare’s FIP.16 proposal lowered FLR issuance, and fees from FXRP activity can now feed a reinvestment mechanism called FIRE.
FXRP moved from minting into lending and yield
Flare is an EVM-compatible Layer 1 built to give applications data from other blockchains and the internet. FXRP is an ERC-20 token created through its overcollateralized FAssets system. The Flare Data Connector verifies XRP Ledger transactions, which lets XRP be represented on Flare while the backing XRP stays on its own ledger.
Hugo Philion, CEO of Flare, framed the year around capital efficiency. He said:
Applications built on FXRP over the past 12 months now span five core DeFi functions:
- Liquidity: SparkDEX, BlazeSwap and Enosys run FXRP trading markets.
- Lending: Kinetic introduced lending markets for FXRP.
- Cover: Firelight turns staked XRP into capital that backs other protocols against exploits, oracle failure and bad debt.
- Yield: Spectra adds fixed-rate and yield trading, while earnXRP from Upshift and Clearstar offers vault-based strategies.
- Debt: Enosys introduced collateralized debt functionality.
Flare then worked on reaching those applications from the XRP Ledger itself. Flare Smart Accounts linked XRPL-native interactions to Flare apps, including a Xaman wallet integration with earnXRP. Later updates widened wallet support. They also cut supported workflows to one XRP Ledger signature.
FAssets v1.3 followed in May with destination-tag minting, a feature aimed at exchange and custodian integrations. FXRP has also expanded to Ethereum and Base. That extends its potential use beyond Flare.
Ethereum credit and FIRE fees test the model
The step into credit came in August. A Morpho market developed with Sentora let holders supply FXRP as collateral to borrow RLUSD on Ethereum. Flare described it as a use for FXRP beyond yield and liquidity. The vault setup is detailed in FXRP’s approval as RLUSD vault collateral.
That growth now connects to FLR, Flare’s native token. The network’s FIP.16 proposal cut annual FLR issuance from 5% to 3%. It also lowered the yearly issuance cap from 5 billion FLR to 3 billion FLR.
Fees from FAssets minting and Flare Data Connector usage can flow to the Flare Income Reinvestment Entity, or FIRE. More FXRP minting and more data attestations can raise the fees available to FIRE. Whether that offsets ongoing FLR issuance depends on the activity reaching sufficient volume, and the announcement published no fee totals.
Two questions stay open. How much FXRP-linked revenue reached FIRE in year one, and what volume would cover issuance?
What’s Next?
Current FXRP holders now face a more fragmented map. The token circulates on Flare, Ethereum and Base, and each position sits inside a separate protocol. Confirming which chain and which application holds each balance is the first practical step.
Flare is also building Flare Confidential Compute. The project extends its data infrastructure toward verifiable confidential computation and Protocol Managed Wallets, with a first deployment path through Songbird.
The larger read concerns design. Flare builds its data protocols into network consensus. That design lets an asset from another chain be verified, priced and used as collateral without leaving its home ledger. The FIRE offset now hinges on one variable: fee volume from minting and attestations.
