Flare Network has launched a new stablecoin backed by XRP, opening the door for XRP holders to borrow, earn, and engage in DeFi without selling their tokens.
Key Takeaways
- Flare Network and Enosys have launched the first stablecoin backed by XRP, powered by FXRP and the Liquity V2 protocol.
- XRP holders can now borrow stablecoins without selling their tokens, using FXRP or wFLR as collateral under a decentralized lending model.
- FXRP, a wrapped version of XRP, enables non-custodial, overcollateralized access to DeFi protocols, making XRP usable across lending, trading, and liquidity pools.
- Launch incentives and reward tokens are driving early adoption, with rFLR payouts targeting DeFi participants in key liquidity pools.
What Happened?
Flare Network has introduced FXRP and a stablecoin borrowing platform backed by XRP, in partnership with Enosys Loans. This development allows XRP holders to mint FXRP and use it as collateral to borrow stablecoins, trade, or earn yields in decentralized finance (DeFi) all without having to sell their XRP. It’s a major leap for XRP’s integration into DeFi applications and broader blockchain utility.
For over a decade, XRP has powered fast and efficient settlement at scale.
— Flare ☀️ (@FlareNetworks) September 24, 2025
FXRP on Flare extends that strength with composability, opening new growth opportunities: XRP as collateral, liquidity, and yield in DeFi.
Mint today:https://t.co/1ovLRNisHZhttps://t.co/Kjsp3Okyrc pic.twitter.com/SRXZIzCZ3a
XRP Enters DeFi Through FXRP and Stablecoin Loans
The Flare mainnet has activated its first-ever XRP-backed stablecoin system, built around its new FXRP asset and the FAssets protocol. This allows users to mint FXRP, a one-to-one wrapped version of XRP and interact with DeFi apps on Flare. The system is non-custodial, fully decentralized, and secured through overcollateralization and on-chain data feeds.
Borrowers can lock FXRP or wFLR (Flare’s native token) to create stablecoins pegged to the US dollar, using a collateralized debt position (CDP) model. The launch also includes a stability pool that protects the peg and rewards participants through fees and liquidations.
Key Features of the System:
- Users maintain long-term exposure to XRP while gaining access to liquidity.
- Stability pool participants earn from fees, interest, and liquidations.
- Borrowers can set their own interest rates, accepting higher risk for lower costs.
- FXRP can be minted directly or acquired via decentralized exchanges like SparkDEX, BlazeSwap, and Enosys.
FAssets: The Backbone of XRP on Flare
The FXRP launch is part of Flare’s broader FAssets system, designed to bring non-smart contract tokens like XRP into DeFi. This system uses a network of independent agents and data protocols like the Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC) to ensure real-time pricing and state validation.
Security has been a key focus, with four independent audits by firms including Zellic and Coinspect, as well as live monitoring from Hypernative and a bug bounty program to reinforce trust.
Flare co-founder Hugo Philion emphasized that XRP can now be used in vault-based strategies that are on-chain, off-chain, or hybrid, offering flexible earning opportunities without custodians.
Early Adoption and Incentives
To boost adoption, the Flare Emissions Committee is distributing rFLR tokens to key liquidity pools, such as:
- Kinetic FXRP Supply.
- FXRP/USDT₮0 Pools on SparkDEX, BlazeSwap, and Enosys.
Some of these pools are targeting APRs of up to 50 percent, making them attractive options for early DeFi participants.
What’s Next for FXRP?
The FXRP ecosystem is set to expand further with the upcoming Firelight project, which will introduce liquid staked XRP (stXRP). This means users can stake XRP for yield while still using those assets as DeFi collateral.
Flare also hinted at bringing other non-smart contract tokens like Bitcoin and Dogecoin into its FAssets framework, potentially widening the impact of this model.
CoinLaw’s Takeaway
This is a big moment for XRP. In my experience watching crypto adoption evolve, one of the biggest roadblocks has always been the lack of utility for non-Ethereum tokens in DeFi. FXRP changes that. If you’re holding XRP, you now have a way to unlock liquidity, earn yield, and explore DeFi without giving up your tokens. That’s powerful. I found the incentive model with rFLR especially smart, since it kickstarts user engagement right out of the gate. This launch could be the beginning of a much broader XRPFi ecosystem.
