In a strategic move to expand XRP’s reach into decentralized finance, Flare (FLARE) has launched its FAssets protocol on Songbird, introducing a new way for XRP holders to access DeFi services without the vulnerabilities of conventional cross-chain bridges. The rollout, which went live on May 14, allows users to transform their XRP into FXRP, a tokenized representation of XRP that can be leveraged in DeFi applications.
With the debut of Core Vaults, Flare provides a mechanism that secures user assets while issuing FXRP tokens. Unlike traditional bridges, where assets are handed over to third parties, Core Vaults maintain asset custody, minimizing the risk of rug pulls and bridge exploits.
“FXRP isn’t just a wrapped asset,” said Hugo Philion, Co-founder and CEO of Flare.
“It’s a comprehensive solution that enables XRP to participate in DeFi without the security vulnerabilities that have plagued other bridge solutions. This is about making XRP more than a payment token—it’s about unlocking its DeFi potential.”
The move comes as a response to the growing demand for secure DeFi integrations, particularly after a 2022 report by Chainalysis found that over $1 billion was lost to bridge exploits, accounting for 70% of all crypto-related losses that year.
Flare’s FXRP aims to offer XRP holders access to DeFi services, including:
- Lending and borrowing platforms
- Yield farming and liquidity mining
- Staking and collateralization
With Flare’s FAssets protocol, XRP is now poised to compete more effectively in the DeFi landscape, positioning itself alongside assets like Bitcoin and Dogecoin. As more assets are added to the FAssets protocol, Flare’s DeFi ecosystem is expected to grow, creating new earning opportunities for asset holders without compromising security.
