Flare’s native token, FLR, surged nearly 8% in the past day to trade near $0.03, reflecting investor enthusiasm after the network introduced FXRP - a new wrapped version of XRP designed for decentralized finance.
With a market capitalization of around $1.9 billion, FLR is positioning itself as a gateway for assets like XRP to enter DeFi at scale.
At its core, FXRP is part of Flare’s FAssets system, which transforms tokens without native smart contracts into onchain, overcollateralized assets. For XRP holders, that means the ability to mint a one-to-one version of their coins that can be deployed into lending markets, liquidity pools, or other DeFi applications. Unlike earlier custodial wrappers that struggled to gain adoption, FXRP uses Flare’s own oracle and data connectors to keep the process decentralized and verifiable.
The rollout is starting cautiously, with just five million FXRP available during the first week, though the ceiling will expand over time. Holders can mint directly through Flare’s independent agents or acquire FXRP on decentralized exchanges such as SparkDEX, BlazeSwap, and Enosys. Popular wallets like Luminite and Oxen Flow have already integrated support for minting, swapping, and bridging.
Flare is also dangling incentives to bring liquidity onto the network. Rewards in rFLR – its native emissions token – will be distributed to FXRP trading pools, with some early pairs targeting aggressive yields. Borrowing against FXRP is being rolled out as well, providing more utility for the wrapped asset.
Security has been a central talking point. The FAssets system has been audited by Zellic and Coinspect, with additional bug bounties and constant monitoring from Hypernative in place. These safeguards are designed to reassure users that the infrastructure can handle large-scale activity.
The launch represents a bigger shift for XRP, which has long sat outside the core of DeFi innovation. Just this week, Midas announced mXRP in partnership with Axelar, offering yet another route for tokenized XRP to find its way into decentralized applications. Flare, however, is pitching FXRP as the first fully non-custodial, overcollateralized option – one it says could set the standard for bringing legacy tokens into Web3.
Looking ahead, Flare plans to extend its FAssets system to cover other major non-smart contract coins, including Bitcoin and Dogecoin. If successful, the network could become a hub for bridging traditional cryptocurrencies into the decentralized economy.
