XRP Became Programmable, Then Gained Vaults and Wider DeFi Access

One Year After FXRP Launched

Flare marked FXRP’s first anniversary by tracing how XRP gained access to financial applications beyond the XRP Ledger. In a Sept. 24 X post, the network wrote, “A year ago today, XRP became programmable as FXRP.” It then pointed to vaults, onchain cover, and money markets on Ethereum as stages in that expansion.

FXRP made those uses possible by representing XRP on Flare while the backing tokens remain on the XRP Ledger. Flare verifies an XRP Ledger payment before minting the corresponding FXRP for use in smart contract applications. When the system launched on Sept. 24, 2025, its initial cap of 5 million FXRP filled in about four hours.

A year later, Flare reported in its anniversary update that about 145.2 million FXRP were minted, with 130 million deployed in decentralized finance (DeFi). Flare wrote:

“A year in, XRP is not just programmable on Flare. It is working capital.”

That description refers to FXRP being used in applications such as vaults and lending markets.

Vaults and Staking Put FXRP to Work

Vaults were one of the first ways holders could put FXRP to use without managing every DeFi position themselves. The MXRPY vault launched in May allocates deposits across options, arbitrage, and onchain strategies. Its returns vary with performance, and its mix of onchain and offchain activity gives it a different risk profile from a fully onchain vault.

Firelight gave holders another option: deposit FXRP and receive stXRP, a token representing the deposited position. Firelight’s Dec. 3 launch announcement identified staking as its first phase. DeFi cover, which would use staked assets to back protection for other protocols, is planned for a later phase.

Deposits into Firelight grew as those products took shape. A March report on Firelight’s staking milestone said the protocol had surpassed 50 million XRP staked and raised its deposit cap to 65 million FXRP. Those figures describe participation in its staking product; Flare’s anniversary post discusses cover as a use for that staked capital.

XRP Reaches Ethereum Lending Markets

The expansion also carried FXRP beyond Flare and into an Ethereum lending market. Holders can supply it as collateral and borrow Ripple’s RLUSD stablecoin while retaining exposure to XRP. To use the FXRP-backed RLUSD market, they must mint FXRP, move it to Ethereum, and manage the loan there.

That borrowing arrangement provides access to a stablecoin without requiring the holder to sell the collateral. In DeFi lending, deposited assets can secure a loan, but the borrower must maintain enough collateral relative to what is owed. A sufficiently large decline in its value can trigger liquidation.

Flare has also shortened the route from an XRP Ledger wallet to a supported vault. Its Smart Accounts now combine FXRP minting and a vault deposit into a single XRP Ledger signature. The company plans to extend that wallet-based flow to borrowing, so holders could reach an RLUSD loan without managing each step across the two networks themselves.