Tag: FXRP

  • FXRP Anniversary: Flare Expands XRP DeFi Infrastructure After One Year

    FXRP Anniversary: Flare Expands XRP DeFi Infrastructure After One Year

    Flare Network is celebrating the first anniversary of its FAsset FXRP, which launched on mainnet one year ago, bringing programmatic XRP to DeFi applications while remaining backed by XRP on the XRP Ledger.

    Since its launch on September 24, 2025, via FAssets v1.2, FXRP has evolved from a simple minting mechanism into a robust infrastructure supporting staking, lending, borrowing, yield strategies, and cross-chain markets. The initial minting cap of 5 million FXRP filled within approximately four hours, signaling strong demand.

    “The notable takeaway from this year is not that XRP can be used in more places,” said Hugo Philion, CEO of Flare. “It is that an asset issued on one chain can become working capital without leaving it, and the path has to be short enough that people actually take it. XRP was the first asset we proved that with. It will not be the last.”

    FXRP is an ERC-20 representation of XRP created through Flare’s overcollateralized FAssets system. The Flare Data Connector verifies XRP Ledger transactions, enabling XRP to be used on Flare. Following the launch, various protocols integrated with FXRP: Kinetic introduced lending, SparkDEX and BlazeSwap provided liquidity, Enosys added collateralized debt, and Firelight uses FXRP for on-chain cover. Spectra brought fixed-rate and yield trading, while Upshift and Clearstar’s earnXRP offered vault-based yield strategies.

    Flare also focused on accessibility from the XRP Ledger through Flare Smart Accounts, which connected XRPL-native interactions with Flare applications. This included a February 2026 integration with Xaman and simplified workflows requiring only a single XRP Ledger signature.

    In May, FAssets v1.3 introduced destination-tag minting for better exchange and custodian support. During 2026, FXRP expanded to Ethereum and Base, broadening its use beyond Flare. A Morpho market developed with Sentora in August enabled FXRP to be used as collateral for borrowing RLUSD on Ethereum, showcasing utilities beyond yield and liquidity.

    FXRP’s growth also coincided with Flare’s token economics updates. FIP.16 reduced annual FLR issuance from 5% to 3% and lowered the cap from 5 billion to 3 billion FLR. Fees from FAssets minting and Flare Data Connector usage can be directed to the Flare Income Reinvestment Entity (FIRE), which may offset FLR issuance as activity grows.

    Flare is also developing Confidential Compute and Protocol Managed Wallets, with initial deployment on Songbird. The pattern of success is not specific to XRP; Flare’s data protocols are enshrined in consensus, allowing assets from other chains to be verified and used without leaving their native ledger.

    About Flare: Flare is an EVM-compatible Layer 1 blockchain focused on data, providing dApps with high-integrity data from other blockchains and the internet via its enshrined data protocols. Products like FAssets and Flare Smart Accounts enable assets like XRP to participate in DeFi while staying connected to their native networks.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments are risky; always do your own research.

  • Flare FXRP Lending Hits $1M in Hours as Bitwise XRP ETF Outflow Sparks Questions

    Flare FXRP Lending Hits $1M in Hours as Bitwise XRP ETF Outflow Sparks Questions

    Flare’s new FXRP/RLUSD lending market saw $1 million borrowed within hours of its launch, while a reported $3.58 million outflow from the Bitwise XRP ETF drew market attention. Available records do not confirm a bearish XRP trade by Bitwise.

    FXRP Lending Demand Quickly Absorbs Initial RLUSD

    FXRP became the first XRP-based collateral approved for Sentora’s institutionally curated RLUSD vault on Ethereum mainnet. The wider vault holds about $280 million in deposits. Flare launched the separate FXRP/RLUSD market with a 5 million RLUSD supply cap. It initially supplied 1 million RLUSD, which borrowers fully used within hours.

    Risk clearance has since approved an expansion of the supply cap to roughly 9 million RLUSD, providing additional capacity if demand continues. Around 150 million FXRP currently circulates across the market. About 34.5 million FXRP already serves as collateral on Mystic Finance, Flare’s native Morpho deployment.

    The Ethereum market operates separately through Sentora. Flare’s FTSOv2 oracle supplies FXRP pricing on Flare, while Sentora uses ChainlinkOracleV2 infrastructure on Ethereum. This structure allows XRP holders to access RLUSD liquidity without first selling their FXRP collateral.

    Bitwise XRP ETF Outflow Reflects Redemption Activity

    Separately, social media accounts reported a $3.58 million outflow from the Bitwise XRP ETF on August 6. The flow reportedly occurred during the August 5 session. Available data supports a net redemption rather than a confirmed directional trade by Bitwise. The trust holds XRP on behalf of shareholders.

    Authorized financial firms handle share creations and redemptions under the fund’s operating structure. Bitwise Investment Advisers sponsors the product. The ETF creates and redeems shares in blocks of 10,000 through authorized participants. Therefore, a net outflow means redemptions exceeded new share creation.

    Does that redemption prove Bitwise expects XRP prices to fall? Public records currently provide no evidence supporting that interpretation. A redemption may result from portfolio rebalancing, liquidity needs, arbitrage, or an investor’s risk decision.

    Fund Records Put Reported XRP Outflow in Context

    Bitwise’s official page showed 293.93 million XRP in the trust on August 4. Those assets carried a value of about $314.39 million. The fund also reported 26.31 million shares outstanding and net assets near $314.37 million. Its net asset value stood at $11.95 per share.

    However, the holdings page had not yet advanced to August 5 when checked. As a result, it could not confirm the reported $3.58 million reduction. The fund’s first-quarter filing also recorded earlier redemptions. It sold about 9.73 million XRP for share redemptions and transferred another 2.69 million XRP through in-kind redemptions.

    Despite those transactions, XRP holdings rose from 131.22 million at year-end to 194.90 million by March 31. Holdings later reached 293.93 million by August 4. XRP traded near $1.07 on August 6, according to supplied market data. Its 24-hour range stood between $1.05 and $1.08.

    The token remained about 70% below its July 2025 record of $3.65. Its market capitalization stood near $67 billion. Bitwise’s fund showed a year-to-date NAV return of negative 41.70% through July 30. Its NAV fell 0.76% on August 4.

    The next confirmation will come from changes in daily holdings, shares outstanding, and net assets. Later SEC filings can also separate cash sales from in-kind XRP redemptions.

    Conclusion

    Flare’s FXRP/RLUSD market recorded rapid borrowing demand, while Bitwise’s reported XRP ETF outflow reflected a redemption rather than a proven bearish trade. Updated Bitwise holdings and later SEC filings should provide clearer evidence about how the August 5 redemption settled.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are risky assets. Always do your own research before investing.