Flare (FLARE) has launched a transformative upgrade designed to bring real XRP (XRP) tokens into the DeFi space without the security risks typically associated with blockchain bridges. On May 14, the network rolled out its FAssets on Songbird, enabling users to engage in DeFi operations using assets like Bitcoin (BTC), Dogecoin (DOGE), and XRP, as per a statement shared with crypto.news.
The launch also introduces Core Vaults on the XRP Ledger, allowing users to collateralize assets without relinquishing custody. Once XRP is locked in these non-custodial vaults, it can be issued as FXRP, a tokenized version that can be leveraged in DeFi protocols.
Hugo Philion, Co-founder and CEO of Flare, emphasized the significance of the upgrade, stating:
“This upgrade is ultimately about giving XRP real utility. XRP is the third-largest crypto asset, excluding Tether—it’s a vast asset. It would be idiotic for us not to build a protocol that serves it. FXRP isn’t just a wrapper—it’s how XRP becomes usable in a composable DeFi world.”
Why FXRP Is Different: Enhanced Security and DeFi Utility
Unlike traditional bridged assets that have faced serious security vulnerabilities, Flare’s FXRP uses a different mechanism to prevent exploits. Core Vaults allow users to collateralize assets without transferring custody to a third party, mitigating risks tied to cross-chain bridges.
In 2022, a report by Chainalysis revealed that cross-chain bridges accounted for over $1 billion in losses due to security breaches, making up 70% of all losses in the crypto sector. Flare’s model seeks to eliminate these risks by maintaining asset control and implementing smart contracts that automate token issuance.
With the integration of FXRP, XRP holders can now access DeFi services, including:
- Lending and borrowing
- Yield farming
- Staking and liquidity provision
The move positions XRP as a serious DeFi contender, transforming it from a transactional asset to a yield-generating instrument within the broader DeFi landscape. As Flare continues to expand its FAssets ecosystem, the network aims to bring additional assets and functionalities to its platform, creating new opportunities for XRP holders to unlock value and participate in DeFi without compromising asset security.
