Flare has crossed a key milestone in its push to position itself as the execution layer for “XRPFi”: nearly 100 million XRP has now been bridged onto the network as FXRP — with roughly 70% actively deployed in DeFi rather than sitting idle.
Capital deployment, not just bridging
Flare describes the milestone as evidence of “growing capital deployment into XRPFi infrastructure,” highlighting three main demand drivers:
1️⃣ Staking via Firelight
About 21% of all FXRP is currently staked through Firelight, an XRP staking and DeFi cover protocol. The platform is also reportedly preparing a new capital raise this month.
2️⃣ Structured vaults like Upshift
Upshift vault capacity expanded rapidly from $6 million to $25 million after initial allocations filled quickly, reflecting strong demand for structured yield strategies.
3️⃣ Lending on Kinetic and Morpho
Early borrowing activity reached approximately:
- $39 million on Kinetic
- $8 million on Morpho
This activity has helped deepen on-chain liquidity and expand FXRP’s role as programmable collateral.
Building a full-stack XRPFi layer
Flare executives emphasize that FXRP is more than a simple wrapped asset. They frame it as part of an integrated “XRPFi execution layer,” allowing XRP to function as programmable collateral across:
- Lending markets
- DEX liquidity pools
- Structured vaults
- Cross-chain environments
FXRP can also extend into environments like Ethereum and HyperEVM, while maintaining on-chain collateralization and issuance transparency.
Flare claims it is now the largest EVM ecosystem for XRP-based DeFi activity.
Macro backdrop
The XRPFi expansion comes amid broader crypto market volatility:
- Bitcoin trades near $67,830, with ~$32.8B in 24h volume.
- Ethereum sits around $1,960.
- XRP hovers near $1.42, fluctuating between ~$1.35 and ~$1.64.
- Solana is quoted around $81.67, down roughly 4.5% on the day.
Despite softer price action, the growth in FXRP deployment suggests increasing utility-driven demand rather than purely speculative flows.
What’s next?
Flare says future growth will focus on:
- Expanded lending markets
- Deeper stablecoin liquidity
- Additional vault integrations
- Bridging on-chain liquidity with regulated financial instruments
If sustained, the model could shift XRP from a primarily payments-focused asset toward a more capital-efficient DeFi collateral layer — potentially redefining its role within the broader crypto ecosystem.
