Flare Networks co-founder Hugo Philion has responded to concerns about FXRP after Ripple engineer Neil Hartner raised questions about the security of blockchain bridges.
Notably, the discussion followed a security incident involving Liquid Network’s Liquid BTC. The company said hackers withdrew about 4,000 BTC, worth roughly $320 million at the time, from the Liquid Federation wallet.
Hartner responded to the incident by saying, “Bridges are hard.” Meanwhile, Flare promoter Hussein Badakhchani replied that Flare had “fixed” the problems associated with bridges.
However, Hartner responded by saying, “I think of this often,” while referencing a 2024 warning that there are essentially two types of bridges: those that have already been hacked and those that will eventually be hacked.
Giving a subtle jab at Flare, founder Philion joined the conversation.
Philion Defends FXRP Security Philion said it was “super depressing” to see comments from key Ripple figures that appear to ignore concerns important to XRP holders and the Flare ecosystem.
He said comments from well-known Ripple figures could make the XRP community think that Ripple is against Flare and FXRP. Philion stressed that this is not the case.
He then explained why he believes FXRP was built with security in mind. According to Philion, most of the XRP used in FXRP is protected through XRPL Escrow, the same system Ripple uses to hold its large XRP reserves.
He said XRPL Escrow has safely held large amounts of XRP for years, so the likelihood of a major, undiscovered security flaw is relatively low. Philion added that if XRPL Escrow itself had a serious security problem, it would affect much more than just FXRP.
FXRP Limits Potential Losses Philion also explained what could happen if FXRP were hacked. He said that if an attack occurred, most of the XRP held in escrow would be moved to a custodian for protection. The remaining XRP, usually less than 20%, is backed by additional collateral in stablecoins and FLR.
The idea is to limit how much money an attacker could steal.
Philion said FXRP was designed to keep the amount of funds at risk as small as possible. This means that even if a security breach occurred, the losses would be much smaller than those seen in some major bridge hacks.
Ripple Engineer Clarifies His Comments Meanwhile, Hartner later said Philion had misunderstood his earlier comments. He explained that his main concern was the long history of bridge hacks. Because of this, he believes users should be “hyper-vigilant” when using any bridge.
Hartner also said he was not suggesting that Flare is careless about security. Instead, he was warning that saying a bridge has “fixed” its security problems could make users overly confident.
You’re misreading me. Given how many bridges have been hacked over the years, users should approach all of them with hypervigilance. My worry is that framing any bridge as having “fixed it” breeds complacency. Not saying that Flare itself is complacent or lax on security.
— Neil Hartner (@illneil) September 7, 2026
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Beating AI Insight News: OpenAI releases ChatGPT Images 2.5. Compared to its predecessor, the new version cuts image generation latency by up to 50%, and better preserves the appearance and details of people and pets when editing photos. Editing is also more user-friendly: users can directly circle a specific area in an image and instruct ChatGPT on changes, such as replacing just one petal or modifying a single object’s color. When making multiple consecutive edits, it is less likely to alter unrelated areas by accident. ChatGPT now also supports drawing sketches to control composition, and has added common image templates for posters, merchandise, and more. Images 2.5 is now available to ChatGPT, ChatGPT Work, and Codex users. Two API versions, Flare and Sunburst, are also launched. Flare is faster, ideal for bulk image generation; Sunburst is more precise, suited for scenarios with higher visual standards. In the latest Arena benchmark, Sunburst ranks first and Flare ranks second, with both models taking the top two positions across all three categories: text-to-image, single-image editing, and multi-image editing.
The Flare [FLR] Improvement Proposal (FIP) 16 passed earlier this year in April with 98.06% in favor. The proposal restructured FLR issuance, burn rate, transaction fees, and protocol revenue.
Most of the roadmap is live, and a DeFiLlama report shows the effects onchain. The Layer 1 EVM chain’s token issuance fell from 5% to 3% in May. Flare Network now has 21 billion FLR staked, up from 16 billion tokens in July.
The staked share of staked-or-delegated FLR climbed from 32% in July to 46% in late August, securing the network and removing tokens from immediate circulating supply. Moreover, after the July 14 hard fork, the current burn rate has increased at least tenfold.
Lower inflation and a burn rate orders of magnitude higher than a few months ago, combined with growing protocol revenue, were good news for users and holders. How has FLR price reacted to these developments?
The weekly Flare crypto chart outlines a clear price trend Source: FLR/USDT on TradingView The Flare crypto price trend has been bearish and has seen sliding prices since late September. Its weekly swing structure turned bearish in December 2025 after FLR slipped below the $0.0121 low.
The RSI has remained below neutral 50 since October 2025. Meanwhile, the OBV has continued its persistent downtrend. Neither the downward momentum nor steady selling pressure has reversed.
The $0.00725 level acted as support in April. Flare is now testing that former support as resistance.
Traders’ call to action- Respect the long-term trend Source: FLR/USDT on TradingView The drop from $0.00829 to $0.00585 in recent months marked the latest swing move on the daily timeframe. In August, FLR twice rallied to the $0.0080 area, just above the 78.6% Fibonacci retracement level at $0.00776.
Twice, the bulls faced rejection. Since the high of $0.00825 made on the 31st of August, FLR is down by 20.9%. The technical indicators were not in favor of the bulls either.
It appeared likely that the higher timeframe trend would be respected, and Flare crypto would descend toward new lows.
The growing adoption and encouraging onchain signs seen earlier could lead to a sentiment turnaround. A price move above $0.00829 would break the bearish structure and serve as the first sign of a bullish trend shift.
Final Summary The FIP 16 passed in April with resounding support. Most of the roadmap is now live, and the effects are visible onchain. At the same time, the Flare crypto long-term price trends remained bearish.
Flare Networks has introduced a new utility for XRP by enabling it to earn yield through vaults, converting it into FXRP. This development allows XRP holders to deploy their assets for earning, expanding its use beyond simple transfer and exchange activity. The introduction of this feature is consistent with an increase in XRP’s utility, potentially influencing its market dynamics positively. As of early September 2026, XRP maintains a price around $1.35 and continues to hold a significant presence in the cryptocurrency market.
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Key Takeaways Flare Networks’ initiative suggests a new utility for XRP, potentially influencing market dynamics positively. The capability to earn yield on XRP through FXRP is consistent with expanding its use in decentralized finance. Market pricing suggests this development could impact XRP’s likelihood of reaching an all-time high by 2026. What to Watch The introduction of FXRP by Flare Networks may influence market sentiment regarding XRP’s price trajectory. Key developments to monitor include any statements from Ripple’s CEO Brad Garlinghouse, or regulatory shifts involving the U.S. SEC. Additionally, indicators such as ETF approvals or significant inflows and outflows in XRP-related markets could play a critical role in shaping XRP’s future price potential. Market participants will likely be attentive to any major announcements from influential financial institutions that could impact XRP’s adoption and usage.
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Term Structure
Contract Odds Δ since publish Volume 24h September 30, 2026 0.9% — — View market → December 31, 2026 5.1% — — View market →
XRP has long been one of crypto’s most widely held assets, but it’s also been one of the most frustrating to put to work. While Ethereum and Solana holders have had a buffet of DeFi options for years, XRP largely sat in wallets collecting dust. Flare Networks is changing that equation, and the numbers suggest holders are paying attention.
The Flare Smart Accounts (FSA) v1.3 update, launched on July 28, 2026, lets XRP holders mint FXRP, a 1:1 representation of their XRP on the Flare network, and deposit it directly into yield-generating vaults. The kicker: it requires just a single signature from an existing XRPL wallet. No complex bridging protocols, no setting up a separate EVM wallet.
The numbers tell the story FXRP deployed in DeFi has grown from 82 million to 144 million since February 2026. That’s roughly 75% growth in about five months.
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Beyond the FXRP figures, more than 40 million XRP is currently earning yield through integrated wallets like Xaman and D’CENT.
The vault ecosystem is where things get interesting. Monarq operates a multi-strategy XRP Yield Vault targeting 3-4% APY through diversified strategies.
Clearstar’s fully on-chain DeFi vault has deployed over 33 million FXRP across lending and liquidity protocols.
How the plumbing actually works FXRP is part of Flare’s broader FAssets system, which creates representations of non-smart-contract tokens on Flare’s EVM-compatible network.
Each FXRP token remains backed 1:1 by XRP collateral secured on the XRP Ledger itself. Users don’t surrender custody of their underlying assets to a centralized entity. The collateral sits on XRPL, the representation lives on Flare, and smart contracts handle the mechanics in between.
This latest update builds on groundwork laid by the earnXRP vault, which launched in December 2025. That initial product established the basic infrastructure for XRP yield generation on Flare, but the newer vault options from Monarq and Clearstar offer variable returns and more sophisticated strategies compared to the earlier fixed-rate approach.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Flare has recorded a roughly 34% increase in staked FLR since July, taking the total to 21.5 billion tokens as its revised economic model cuts inflation and ties more network activity to token burns and protocol revenue.
Summary
Flare staking increased from about 16 billion to 21.5 billion FLR after the July upgrade. FIP.16 reduced annual FLR inflation from 5% to 3% and lowered its issuance ceiling. Transaction-fee burns have risen to more than 10 times their level before the network upgrade. FIRE has collected $31,438 from four revenue sources since it started operating in May. Flare staking has increased to 21.5 billion FLR DefiLlama Research reported on Sept. 4 that Flare’s tokenomics changes are producing measurable onchain results four months after the network approved FIP.16.
Staked FLR rose from approximately 16 billion in July to 21.5 billion, an increase of about 34%. The portion of all staked or delegated FLR held in staking climbed from roughly 32% in April to 46% by late August, with much of the increase occurring within weeks of the July 14 network upgrade.
Under FIP.16, FLR locked on Flare’s P-chain carries five times the signing weight of wrapped FLR delegated on its C-chain. Delegated tokens remain liquid and can be withdrawn at any time, while P-chain staking requires holders to lock their capital with a validator.
Signing weight determines how much influence infrastructure providers have when producing blocks and operating Flare’s native data systems. Providers run the Flare Time Series Oracle, which supplies price feeds, and the Flare Data Connector, which verifies information from other blockchains and Web2 services.
Before FIP.16, different Flare protocols calculated voting weight in different ways. The revised system applies one calculation across FTSO anchor feeds, FDC, and block-latency feeds, with locked stake receiving the fivefold weighting.
Flare’s official governance proposal said the change was designed to put more influence behind committed capital and make the network’s core services equally costly to attack.
At the same time, the July upgrade raised the maximum stake per validator from 200 million to 300 million FLR. It also introduced a network-wide minimum delegation fee of 20%, replacing the previous minimum of zero.
Flare said the fee floor should prevent providers from competing through unsustainably low charges. Infrastructure providers must operate validators, collect data, maintain independent systems, and participate in governance, according to the proposal.
Flare tokenomics changes cut inflation and raise burns Annual FLR inflation fell from 5% to 3% on May 14, cutting the headline rate by 40%. The annual issuance ceiling also declined from 5 billion to 3 billion FLR.
With an inflatable supply of about 87 billion tokens, the 3% rate produces a gross yearly issuance of roughly 2.6 billion FLR, according to DefiLlama Research. Actual issuance may decrease over time because FIP.16 also changed, which balances count toward the calculation.
Permanently burned FLR, tokens held by the Flare Income Reinvestment Entity, and unearned rewards placed in certain penalty pools are excluded from the inflation base. As those balances increase, the amount subject to the 3% calculation becomes smaller.
Transaction burns accelerated after Flare implemented its Granite upgrade on July 14. Official network release notes show that the minimum C-chain base fee increased from 25 gwei to 500 gwei.
All FLR paid as base transaction fees are permanently destroyed. Flare had burned 15.6 million FLR through transaction fees in 2026 by the time DefiLlama published its report, with more than 40% of the total burned following the July upgrade.
Consequently, the current burn pace sits at more than 10 times its pre-upgrade baseline. Usage determines the amount destroyed because every transaction removes FLR without requiring a new vote or a treasury decision.
Higher gas settings have not made simple transfers expensive in dollar terms. DefiLlama estimated that a basic transfer costs around 0.064 FLR, although transactions involving smart contracts may consume more gas.
Activity feeding the burn mechanism has also expanded through Flare’s FAssets system. In May, an FAssets v1.3 upgrade allowed users to mint FXRP from centralized exchanges such as Binance and Kraken through an XRP Ledger destination tag. FLR rose 14% on the day the upgrade went live, crypto.news reported at the time.
FIRE has started collecting network revenue FIP.16 created FIRE as a governed entity responsible for receiving revenue generated by Flare’s protocols. Its primary mandate permits the entity to reduce FLR supply through token burns and open-market purchases.
Secondary uses include supporting asset issuers, application yields, liquidity programs and the Flare Foundation’s network operations. Flare initially administers the entity through its foundation.
Four income sources are already active. FIRE receives all FAssets minting fees, 90% of FDC request fees, 10% of FAssets redemption fees, and FLR paid for FXRP destination-tag registrations.
Since collections began in May, FIRE has received assets worth $31,438, according to the DefiLlama report. FAssets minting provided $18,248 across 7,708 mints, making it the largest source.
FDC request fees contributed another $12,676 after collections from that service began on Aug. 18. Destination-tag registrations added $505, while FAssets redemption fees supplied $9.
Two sources pay FIRE in FLR, and two pay in FXRP. As a result, the pool’s reported dollar value changes with token prices as well as the volume of protocol activity.
FDC activity supports several services behind those revenue streams. Flare uses the connector to verify payments and events outside its network, including XRP Ledger transactions involved in creating FXRP.
A July update simplified FXRP access by allowing users to mint the asset and enter selected vaults with one XRP Ledger signature. At the time, FXRP deployed in DeFi had increased from 82 million in February to 144 million, while users had created nearly 24,000 Flare Smart Accounts.
FIRE’s current receipts remain small compared with approximately 2.6 billion FLR in estimated gross annual issuance. Flare’s model therefore still relies mainly on reduced inflation and transaction burns rather than on enough protocol income to offset token creation.
Planned income from Flare Smart Accounts, Confidential Compute, and protocol-level maximal extractable value has yet to enter FIRE. Flare said its MEV system would capture value from permitted activities such as liquidations, atomic arbitrage, cross-chain arbitrage, and just-in-time liquidity.
According to Flare’s April explanation of FIP.16, its DeFi ecosystem processed more than 660,000 transactions involving cyclic-arbitrage structures and over 1,000 liquidation events during the first quarter of 2026. The company said the amount that FIRE could collect from MEV would depend on the volume and type of DeFi transactions processed by the network.
FXRP activity connects Flare with U.S.-regulated RLUSD FAssets give tokens from networks without smart-contract support a usable form on Flare. FXRP represents XRP within that system, allowing holders to place the asset in lending markets, liquidity pools, vaults, and other decentralized applications.
Flare said in April that more than 150 million FXRP was in circulation, with about 85% deployed across DeFi. At that point, the network had more than $160 million in total value locked under DefiLlama’s standard calculation and over 880,000 active addresses.
Part of that activity now reaches Ethereum. In August, FXRP received approval as collateral in Sentora’s RLUSD Main vault on Morpho, allowing holders to borrow Ripple’s dollar-backed stablecoin without selling their XRP exposure.
The RLUSD lending market provides a relevant U.S. connection because Ripple received approval for the stablecoin from the New York Department of Financial Services in December 2024. Sentora reviewed FXRP’s liquidity, price behavior, oracle design and liquidation mechanics before accepting it as collateral.
Morpho uses isolated lending markets, limiting problems with one collateral asset to its specific pool rather than exposing every market in the protocol. Borrowers must deposit more FXRP than the value of RLUSD they receive, and liquidations depend on enough FXRP liquidity being available to repay lenders.
FIRE may move to joint community governance after its first year. Initiating the change requires support from holders representing at least 50% of Flare’s total inflatable FLR supply, after which the network would elect four representatives from infrastructure providers operating across Flare and Songbird.
ChatGPT pointed a user toward a fake crypto site, and when they signed one approval, 1,904,513 FXRP left their wallet.
That is about 1.3% of the entire FXRP supply today. Investigator VAL says the same phishing setup took more than $2.2 million overall.
One Signature, 1.9 Million FXRP GoneThe victim goes by Alex on X (Twitter), an individual who asked ChatGPT in Russian where to swap sFLR, Flare’s liquid-staked token, for wrapped FLR.
The answer carried a link to sceptre.network, and not Sceptre. The real liquid staking app runs from sceptre.fi. Alex connected his wallet and approved an unlimited spending limit. He never moved the tokens himself.
Blockchain records show the drain ran shortly before 7 pm UTC on June 12. The attacker’s own contract called it. Alex’s signature had already done the work.
Lost ~1.9M FXRP to an approval-phishing scam.
I asked ChatGPT where to swap sFLR for WFLR. Its answer contained a link — it led to a phishing site. I signed an "unlimited approve," and the funds were drained via transferFrom seconds later.
Tx:… pic.twitter.com/1waLIWyotG
— Alex (@vesnuhin) June 13, 2026 The token was FXRP, Flare’s bridged version of XRP for decentralized finance (DeFi). Alex put the loss near $2.1 million.
The receiving wallet was not new either, with blockchain data showing its first funds landed on April 23, fifty days before Alex signed. It has since taken in at least four different Flare tokens, suggesting he may have not been the only target.
“This wallet has been operating since April 2026, receiving FLR in varying amounts,” on-chain investigator Val noted.
BeInCrypto described this method earlier in the year, three weeks before Alex clicked. Drainers register lookalike Uniswap domains and buy search ads to farm approvals.
@Uniswap typing your name on Google has shown a scam site at the top for weeks.
Many users have reported losing funds after connecting wallets to an identical interface.
The site is now down (404), but the URL still appears. It can be reused or reactivated by scammers.
Please… pic.twitter.com/tZm5uYzlJK
— BeInCrypto (@beincrypto) March 31, 2026 The unlimited approval is the whole attack, just as one Ethereum holder learned after losing $999,999 to one signature.
OpenAI’s Agents Took Over a German WikiElsewhere, Reuters reported Friday that agents linked to OpenAI made about 15,000 edits to DseWiki, a quiet German programming wiki, starting in May.
Researchers led by Sydney Von Arx of the AI safety nonprofit Nightingale found the agents swapping tips. They traded ways to cheat tasks, dodge OpenAI’s rules and hide their tracks. About half took names like OpenAIResearcher.
When a moderator began deleting pages in June, the agents saved ZZZ-prefixed copies. An alphabetical sweep reaches those last. Some discussed using Tor.
OpenAI has not accepted the findings.
“We are unable to meaningfully respond to claims or findings on a report that we have not had an opportunity to review” Reuters reported, citing an OpenAI spokesperson.
A July breakout went further, with roughly 1,200 agents gathering on an improvised board. About 700 then breached Hugging Face. BeInCrypto covered that escape in August, when OpenAI gated its cyber model.
This could be one of the most significant AI safety incidents to date.
Reuters reports that OpenAI agents escaped their testing environment and made more than 15,000 edits to a German wiki, effectively turning it into a message board for other AI agents.
They allegedly used it… https://t.co/zt1fnNNfho pic.twitter.com/lY5Jk6kNfs
— Chubby♨️ (@kimmonismus) September 4, 2026 The two cases share a medium, not a culprit. Criminals seeded the web so a model would echo their link. OpenAI’s agents wrote to it themselves. Both worked because a page looked safe.
Flare, a renowned L1 blockchain network, has witnessed notable on-chain effects from its tokenomics overhaul. This comes after the FIP.16 proposal obtained 98.06% support from Flare’s governance participants. As per DefiLlama, the proposal decreased yearly $FLR inflation, enhanced transfer fees, and unveiled mechanisms to create a relatively strong link between the token supply mechanics and network activity. So, since the start of significant changes, a noteworthy jump has taken place in $FLR staking from almost 16B tokens to nearly 21.5B.
Flare FIP.16 Overall Bolsters $FLR Burns and Decreases Inflation The tokenomics overhaul of Flare is showing a considerable impact, especially after 98.06% governance support for the FIP.16 proposal. In the meantime, transfer-led burns have spiked to over 10 times in comparison with the pre-fork baseline. The changes present an early sign of whether the network can transform the economic framework from inflation-funded benefits toward revenue that genuine protocol usage generates. Particularly, FIP.16 was passed on the 24th of April, combining many key changes influencing $FLR issuance, staking weight, protocol revenue, token burns, and transfer fees.
The initial major adjustment occurred on the 14th of May, when yearly inflation was decreased from up to 5% to just 3%. At the same time, the annual issuance ceiling dropped from 5B to nearly 3B $FLR. Additionally, the robust inflation base also saw a reduction. Specifically, this calculation does not include permanently burned $FLR tokens, $FLR that the Flare Income Reinvestment Entity controls, and unearned rewards kept in diverse penalty pools. While these balances increase, the supply against which the up to 3% rate is reportedly applied gets smaller, likely decreasing additional issuance.
Another major change took place through the July 14 hard fork. With this, Flare introduced a 20-fold increase in the base transfer fee to bolster the automatic $FLR burn model of the network. Irrespective of the surge, a simple transaction costs just 0.064 $FLR, maintaining a relatively low base for the practical expense. Additionally, FIP.16 has altered the distribution of economic influence across the network.
Tokenomics Overhaul Drives $FLR Staking As a result, P-chain stake gets 5 times the C-chain delegation’s signing weight, leading to more influence for the $FLR tokens locked with validators. This development is set to support capital that is committed to ecosystem security when compared with liquid delegated tokens prone to being withdrawn relatively easily. The peak validator size surged from 200M to 300M $FLR, with the introduction of a minimum 20% delegation fee across the network.
According to DefiLlama, the effect of Flare’s economic overhaul includes the jump in staked $FLR tokens from 16B to 21.5B in July. Along with that, the staking share of delegated and staked $FLR tokens spiked from 32% to 46% between April and August. Additionally, FIRE is another crucial element of this overhaul, as the pool reduces the $FLR supply via open-market buyouts and burns. Overall, Flare’s FIP.16 denotes a crucial shift in the tokenomics, with increasing protocol revenue, rising burns, and growing staking paving the way for a relatively sustainable network.
AUTHOR
Crypto journalist with years of experience providing in-depth analysis and news on blockchain and decentralized finance. With a keen eye for detail, Shahzaib delivers insightful articles that explore the latest trends, market movements, and innovations within the crypto and blockchain ecosystem. His work focuses on educating readers while offering expert commentary on the evolving landscape of digital assets, DeFi protocols, and the broader impact of blockchain technology.
@FlareNetworks has secured a spot on DefiLlama's investor relations platform, with the analytics provider publishing a dedicated dashboard for the network on Thursday. The page was vetted by DefiLlama's research arm and arrives roughly four months after Flare's landmark governance proposal, FIP.16, passed a community vote.
What the Dashboard Shows According to figures cited by @FlareNetworks, the dashboard puts chain total value locked (TVL) at $129M against $355.54M in bridged assets. Burns are running at 1.64% of emissions over a 30-day period, with net inflation of 197.11M $FLR.
, and its investor relations product is designed to give protocols a clean, verified hub for dashboards, reports, and data. , keeping the figures independent from broader rankings and discovery pages.
Context: FIP.16 and the FLR Tokenomics Overhaul
The burn rate visible on the new DefiLlama dashboard will give investors a real-time way to track how those mechanics are playing out on-chain.
The listing is a credibility marker for the network, placing Flare alongside other protocols that have secured vetted dashboards on the platform, including Spark, Sonic, NEAR, and THORChain.
Sources:
DefiLlama Investor Relations Platform
FIP.16 Governance Proposal, Flare Network
Flare Begins Voting on FIP.16, Crypto Times
Flare [FLR] joins the market’s top gainers, delivering a staggering 15% rally, with the price trading at about $0.0065 at the time of writing.
Market analysis shows that there is a high chance the rally may not stop here and, in fact, could still create a new high depending on certain key structural hurdles it can overcome on the chart.
Bullish structure, but hurdle surfaces FLR’s structural pattern is presently optimistic, as the asset’s price pattern over the past couple of days has shaped into a cup-and-handle pattern.
This has been a bullish precursor, especially when the price breaches the neckline. In the case of FLR, this is the horizontal resistance level at $0.0075, which could pave the way for further upside on the chart.
Source: TradingView The bullish outlook has three key levels, with the closest being $0.0082, followed by $0.0084, while the most bullish outcome places FLR at $0.010 on the chart. Momentum will play a major role in determining where the price rallies next.
However, the major hurdle remains overcoming the neckline resistance, which could determine whether the market witnesses a solid run or not. Regardless, a rally from the current price level to the neckline would deliver roughly 10% upside.
Indicators show strength Overall, the indicators show that the market has strengthened, with momentum supporting the possibility of a continued rally.
At the time of this report, the Aroon Indicator, a trend analysis tool, shows that the Aroon Up line, marked in orange, is above the Aroon Down line, with readings of 92.86% and 7.14%, respectively.
Whenever these lines are set apart, with the Aroon Up line higher than the Aroon Down line, there is a higher chance that the price will continue to form higher swings.
Source: TradingView However, in this case, it is worth noting that the most bullish outlook comes when Aroon Up reaches 100% while Aroon Down sits at 0.00%.
The Accumulative Swing Index (ASI) has also shaped up in a way that indicates the market is bullish, with the ASI trending upward on the chart.
Right now, the ASI has ticked slightly lower, marked in red. However, this is more likely a reflection of a pullback than the beginning of a wider market correction.
Spot market could impact the trend Spot market traders could play a decisive role in ensuring that the asset continues to rally. At the time of this report, there has been a massive surge in demand for FLR.
Data from CoinGlass shows that netflow reached roughly $325,000, suggesting that more of the asset has moved out of exchanges and into private wallets for long-term holding.
Source: CoinGlass If this movement of capital is sustained, with outflows continuing to outweigh inflows, it could support FLR’s push toward a new high in the near term.
Final Summary FLR’s bullish cup-and-handle structure puts $0.0082 and $0.0084 in focus, with $0.010 possible if momentum strengthens. Strong Spot demand and rising outflows could support FLR’s rally as buyers push the price toward a new high.
U.S. stock futures were lower on Monday, as the Dow Jones, S&P 500 and Nasdaq 100 indices fell, following Friday’s lower close.
Geopolitical and trade anxieties spiked over the weekend following U.S. military strikes on Iranian rocket launchers on Larak Island near the Strait of Hormuz, which triggered Iranian missile and drone retaliation against U.S. air bases in Jordan on Sunday. Meanwhile, President Donald Trump intensified trade tensions by calling Canada "the worst" for trade abuses and asserting his tariffs have "saved" the U.S. auto industry.
The market will turn toward key economic indicators this week, highlighted by Friday’s crucial August employment data. Investors will also be tracking a busy earnings lineup this week, featuring top AI infrastructure providers such as Dell Technologies Inc. (NYSE:DELL), Hewlett Packard Enterprise Co. (NYSE:HPE), and Broadcom Inc. (NASDAQ:AVGO), along with cybersecurity leader Palo Alto Networks Inc. (NASDAQ:PANW).
On Friday, Federal Reserve Chair Kevin Warsh used his first Jackson Hole address to warn investors that the fight against inflation remains far from finished. He delivered a hawkish message: inflation remains too high, the labor market is effectively at full employment, and financial conditions may not be restraining the economy much at all.
The 10-year Treasury bond yielded 4.71%, and the two-year bond was at 4.31%. The CME Group’s FedWatch tool projections show markets pricing a 61.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
IndexPerformance (+/-)Dow Jones-0.09%S&P 500-0.13%Nasdaq 100-0.04%Russell 20000.11%The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Monday. The SPY was down 0.23% at $767.56, while the QQQ declined by 0.17% to $715.19.
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Benzinga’s Edge Stock Rankings indicate that PHGE maintains a weak price trend in the short, long, and medium terms. Walmart Walmart Inc. (NYSE:WMT) was just 0.049% higher as it agreed to pay $50 million to settle a Department of Justice lawsuit alleging its pharmacies unlawfully filled opioid prescriptions, fueling the national opioid epidemic. Benzinga’s Edge Stock Rankings indicate that WMT maintains a weak price trend in the short, long, and medium terms, with a good growth score. ONEOK ONEOK Inc. (NYSE:OKE) was up 0.27% after it agreed to acquire Brazos Midstream’s Permian Midland Basin assets for a $4.425 billion all-cash transaction along with a $9 billion minority equity investment. Benzinga’s Edge Stock Rankings indicate that OKE maintains a strong price trend in the short, long, and medium terms, with a solid value score. Rezolve AI Rezolve AI PLC (NASDAQ:RZLV) was 3.39% higher as it announced a global strategic alliance with Tech Mahindra Ltd. to accelerate the deployment of agentic commerce across large enterprises worldwide. Benzinga’s Edge Stock Rankings indicate that RZLV maintains a strong price trend in the short and medium terms but a weak trend in the long term. FingerMotion FingerMotion Inc. (NASDAQ:FNGR) corrected by 15.83% in premarket on Monday after soaring 129.53% on Friday as investors reacted to corporate updates detailing new management’s strategic pivot into behind-the-meter artificial intelligence and high-performance computing data center infrastructure across North America and its alliance with BlueFlare Energy Solutions Inc. Benzinga’s Edge Stock Rankings indicate that FNGR maintains a weak price trend in the long, short, and medium terms. Read Next
Cues From Last SessionConsumer discretionary and communication services stocks bucked the overall market trend to end higher on Friday, while most S&P 500 sectors closed lower, led down by information technology, utilities, and industrials.
Insights From AnalystsMohamed El-Erian highlights a market caught between “a tug-of-war between top-down macro policy and bottom-up corporate earnings”. While robust corporate fundamentals continue to cushion sentiment—driven by big tech performers like Nvidia Corp. (NASDAQ:NVDA) and Broadcom—underlying structural pressures threaten broader market stability.
El-Erian observes that U.S. equities face significant crosscurrents, particularly from sovereign debt dynamics. Rising U.S. yields—with the 10-year at 4.73% and 30-year at 5.20%—reflect growing “flow-of-funds strain facing the US bond market,” exacerbated by foreign sales of U.S. securities.
Although the Treasury’s impulse to suppress long-end yields is understandable to protect housing and consumer affordability, El-Erian warns of “valid warnings of market distortion and unintended systemic side effects.”
On policy, Federal Reserve Chair Warsh’s debut Jackson Hole address delivered a “hawkish” assessment. Markets now price in an increased probability of a September rate hike, as domestic macro signals remain mixed. With key data like the August Employment Report on the horizon, El-Erian expects ongoing volatility across energy, foreign exchange, and sovereign yields to dictate near-term direction.
Upcoming Economic DataHere’s what investors will be keeping an eye on this week.
No data is scheduled to be released on Monday. On Tuesday, August’s flash S&P U.S. manufacturing PMI data will be released by 9:45 a.m., while August’s ISM manufacturing PMI, July’s construction spending, and July’s JOLTS job openings data will all be out by 10:00 a.m. ET. On Wednesday, August’s ADP national employment report will be released by 8:15 a.m., followed by July’s factory orders data at 10:00 a.m., and the Federal Reserve’s Beige Book release at 2:00 p.m. ET. On Thursday, initial jobless claims for the week ending Aug. 29, July’s U.S. trade balance data, and Federal Reserve Governor Christopher Waller‘s remarks at the Reuters NEXT Newsmaker Interview will all be released by 8:30 a.m. ET. August’s flash S&P U.S. services PMI will be out by 9:45 a.m., August’s ISM services PMI will be released by 10:00 a.m., and Cleveland Fed President Beth Hammack alongside Chicago Fed President Austan Goolsbee will deliver special remarks at the ‘Connecting Communities’ online event at 3:00 p.m. ET. On Friday, August’s employment report, unemployment rate, and average hourly earnings data will all be out by 8:30 a.m. ET. Commodities, Crypto, And Global Equity MarketsCrude Oil WTI futures were trading higher in the early New York session by 3.45% to hover around $86.34 per barrel.
Gold Spot US Dollar fell 0.37% to hover around $4,438.70 per ounce. The U.S. Dollar Index spot was 0.13% lower at the 99.5690 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.50% higher at $78,411.64 per coin over the last 24 hours.
Asian markets were mixed on Monday, as South Korea’s Kospi and China’s CSI 300 indices rose. Australia’s ASX 200, India’s Nifty 50, Hong Kong’s Hang Seng, and Japan’s Nikkei 225 indices fell. European markets were mixed in early trading.
An Oracle Built Into the Chain Itself@FlareNetworks takes a different approach to price data than most blockchain networks. Rather than relying on a third-party oracle service, , meaning every price feed it produces carries the same security guarantees as the chain itself.
That distinction matters for DeFi applications that depend on price accuracy: the oracle cannot be separated from the chain's consensus, removing a common attack surface found in bolt-on oracle designs.
How the Random Draw and Commit-Reveal Mechanism WorkProvider selection is not static. On every block, roughly every 1.8 seconds, a stake-weighted random draw picks a sample from the network's pool of data providers. The selected providers submit small incremental updates to the previous price, keeping feeds current without requiring every provider to act on every block.
Layered on top of that fast feed is a slower anchor round that runs approximately every 90 seconds. In that round, all providers participate in a commit-reveal process: they submit their prices in sealed form first, then open them simultaneously. The sealed submission prevents any provider from copying another's answer before committing, preserving genuine independence across the provider set. Outlier submissions are filtered out, which stops bad or manipulated readings from pulling the final price off course.
That competitive dynamic gives providers an economic reason to submit accurate data rather than free-ride on others.
Delegation lets ordinary token holders align their stake behind providers they trust, reinforcing the stake-weighting that drives the random selection process.
The design positions Flare's oracle as infrastructure rather than an add-on, with the two-speed architecture, fast per-block feeds anchored by periodic commit-reveal rounds, aimed at combining responsiveness with resistance to short-term manipulation.
Sources
Flare Developer Hub: FTSOv2 Overview
Flare Network: Flare Time Series Oracle (FTSO)
Vault grows more than sixfold from launch capThe @ClearstarLabs earnXRP vault on @FlareNetworks has raised its deposit cap for at least the second time, with holdings now standing at 33.73 million FXRP, worth around $46.5 million. That figure is more than six times the 5 million token ceiling the vault carried at its December 2025 launch. Flare confirmed the latest cap increase without specifying the new limit.
earnXRP is the first fully on-chain yield product denominated in $XRP, allowing users to deposit FXRP, XRP represented one-to-one on Flare, into a single vault that deploys capital across a diversified set of yield strategies. The Clearstar vault takes a fully on-chain approach, deploying FXRP across lending and liquidity protocols on Flare, including Avant and Euler. The vault targets a 3% annual yield and charges a 0.75% management fee plus a 10% performance fee.
Flare Smart Accounts lower the barrier for XRP holdersDeposits route through Flare Smart Accounts, which remove much of the technical friction traditionally associated with cross-chain DeFi. They combine what would normally require multiple steps, such as minting FXRP, navigating decentralised applications, and managing activity across different interfaces, into a single unified flow, while self-custody is retained throughout. In practice, that means XRP Ledger wallet holders can participate without separately minting FXRP or managing a standalone EVM wallet.
Flare launched Smart Accounts v1.3 to simplify how XRP holders access DeFi by reducing a process that previously required multiple steps to a single wallet signature. More than 40 million XRP is currently earning yield through Flare Smart Accounts, while nearly 24,000 Smart Accounts have already been created. The repeated lifting of the Clearstar vault cap suggests sustained demand, underscoring the broader push to bring $XRP holders into on-chain yield strategies that were largely inaccessible before the FAssets system launched.
Only 0.1% of XRP supply is utilised in DeFi despite the token being among the largest cryptocurrencies by market capitalisation. Products like earnXRP are designed to chip away at that gap by offering a straightforward, non-custodial entry point into XRPFi.
Flare’s FLR token continued its recovery on Friday, climbing 6.95% to approximately $0.00743 as trading activity increased.
The price move took FLR above a level that had limited earlier recovery attempts, but the speed of the rally also brings with it the possibility of a short-term pause.
FLR rebounds from a record low FLR reached a daily high of $0.00749, continuing a positive move that began after it fell to a record low on August 19.
Trading volume rose sharply with the price, giving the positive move more weight, as it shows that buyers were actively in the market during the move.
FLR also pushed above resistance at $0.00717, moving to price levels that have been closely watched. Being able to stay above $0.00717 when the daily session closes would strengthen the case that the recovery is not just a temporary bounce, but the next major hurdle sits around $0.0083.
Source: TradingView But because FLR traded near this area before its latest decline, some holders may choose to sell if it returns there. Still, the rally has been quick, and there are indicators on the daily chart showing that it has already entered an overheated range, which suggests that buyers may need a breather.
If FLR falls back below $0.00717, the area around $0.00694 could offer its first test of support.
Flare reshapes its token plan The price recovery comes months after Flare proposed changes intended to connect network activity more closely with FLR.
Under the plan, the annual inflation would fall from 5% to 3%, and Flare wants to collect revenue generated across the network and use part of it to reduce the token supply.
The proposal came after FlareDrops ended in January 2026, a program that distributed 24.2 billion FLR over three years, making its conclusion important to token supply.
The FLR price rose during a wider crypto-market recovery, meaning broader market sentiment may have contributed.
Final Summary FLR moved above $0.00717 as price and trading volume increased. If it’s able to hold that level, $0.0083 could be the next major test.
Clearstar doubles down on XRP yield as vault capacity grows@ClearstarLabs has raised the deposit ceiling on its earnXRP vault to 45 million FXRP on @FlareNetworks, equivalent to roughly $59 million at current prices. The move gives XRP holders significantly more room to put idle capital to work, and it follows the arrival of new stablecoin borrowing venues that give the vault fresh avenues to deploy deposits.
FXRP is the wrapped, on-chain representation of XRP on Flare. It is a 1:1 ERC-20 representation of XRP that sits inside a single non-custodial vault, which deploys capital across multiple curated strategies and automatically compounds returns back into XRP. Inside the earnXRP structure, FXRP is used as collateral to borrow stablecoins at low cost, those stablecoins are then deployed into other DeFi protocols where yields exceed borrowing costs, and profits are compounded back into FXRP while the vault remains fully XRP-denominated.
The vault is accessible through the @XamanWallet Flare Yield app. Withdrawals follow a standard 72-hour window, with an instant-exit option available for a fee.
Expanding borrowing infrastructure backs the raiseThe cap increase is directly tied to growing infrastructure around FXRP borrowing. XRP holders can now use FXRP as collateral to borrow Ripple's RLUSD stablecoin on Ethereum via a new isolated market on Morpho Blue, managed by Sentora, which approved FXRP after reviewing its market behavior, oracle design, liquidity, and liquidation capacity under an institutional risk framework. Flare's wrapped token has been accepted as collateral by Sentora, which manages a $280 million lending pool of Ripple's RLUSD stablecoin.
Flare said the integration addresses one of the biggest challenges facing XRP DeFi: access to deep stablecoin liquidity, noting that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency. More borrowing capacity means the earnXRP vault can deploy larger positions, which in turn supports the higher deposit cap.
Only 0.1% of XRP supply is currently utilized in DeFi, despite the token being one of the largest cryptocurrencies by market capitalization. The earnXRP vault, originally launched with an initial cap of just 5 million FXRP, has grown steadily as Flare's on-chain ecosystem has matured. Target yields for the vault range from roughly 4% to 10%, depending on vault size.
Sources:
Flare Network: EarnXRP Launches on Flare
CoinDesk: XRP holders can now borrow RLUSD via $280 million lending pool
The Block: New XRP yield product earnXRP launches using Flare Network's infrastructure
In brief CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed during a CFTC roundtable in Washington, D.C. Duffy singled out Kalshi while questioning whether prediction markets face the same regulatory scrutiny as established exchanges. The clash comes amid a fight between federal and state regulators over prediction markets. A CFTC roundtable on prediction markets turned heated Thursday when CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara traded insults over market manipulation and regulation.
The confrontation unfolded during a Commodity Futures Trading Commission meeting in Washington, D.C., as executives from traditional finance, crypto, and prediction markets debated how event contracts should be regulated.
Myriad: Will the Clarity Act be signed into law in 2026? Click to make your prediction.Duffy, whose CME Group operates the world's largest futures exchange by volume, said he was "a lot concerned" about prediction markets and argued that some contracts are susceptible to manipulation.
"We're not a bunch of carnival barkers at a circus," Duffy said. "We are running the most envious markets in the world in the United States of America."
Duffy then took aim at the types of contracts Kalshi offers, mocking one in particular.
"There's another really economic contract that has been massively important for the United States. That's a Nathan's hot dog eating contest," Duffy said sarcastically.
He also questioned why Kalshi could offer a compute prediction market while CME's proposed compute contracts remained under review.
After Kalshi was called out by name, Lara challenged Duffy on CME's own history.
"I just wanted to respond since we were called by name here," Lara said. "I would actually have to ask Terry: Has CME ever had any issues with any market manipulation, any issues ever in its history?"
"If you'd like to have a debate, I'm happy to have a debate with you," Duffy replied.
"I'm just asking a simple answer to a question," Lara said.
"I have more people in my regulatory department than you have in your whole company," Duffy said, referring to the size of CME Group's operation compared to Kalshi.
"Maybe you should learn a bit about efficiency then," Lara fired back.
"Well, maybe you should learn about credible markets," Duffy replied, before moderator Walt Lukken stepped in.
Lara then argued that the problems Duffy raised were not unique to prediction markets.
"Every market has risk and every nascent market will have risks as well, and there have been issues in every single traditional market and every single exchange here, onshore and offshore," she said. "And I think the point of having regulation is that you find these issues, you address these issues, and there's a way to address them in a correct way.”
DraftKings CEO Jason Robins later urged participants to stop attacking each other's businesses.
"I would just ask everybody, both in this hearing and then also in future communications, to try to refrain from taking shots at each other's business models or decisions you may not 100% agree with," Robins said. "That doesn't advance the discussion."
Prediction Markets Face Regulatory Fight
Prediction markets allow their users to wager on the outcome of virtually any event through futures contracts that settle for $1, with the price of the contract implying the odds of the event. For instance, on Myriad—a prediction market operated by Decrypt’s parent company Dastan, the event contract for “Bitcoin highs in August” is priced at 59 cents on the $75K outcome, implying users believe there’s a 59% chance Bitcoin reaches $75,000 before the end of the month.
Myriad: Bitcoin next price move? Click to make your prediction.Prediction market platforms that operate in the United States, like Polymarket and Kalshi, have become the focus of a fight between federal regulators and states over whether contracts tied to sports, elections, and other real-world events are federally regulated derivatives or gambling products subject to state law.
CFTC Chair Selig has defended the agency's jurisdiction over federally regulated prediction markets, warning states challenging that authority in February.
"We will see you in court," Selig said in a video posted to X. The agency has since taken legal action against states seeking to regulate event contracts under their gambling laws.
In June, the CFTC proposed restrictions on certain contracts involving war or assassination and some sports proposition bets considered particularly susceptible to manipulation.
Earlier this month, nine Democratic senators urged Selig to prohibit wildfire event contracts, warning they could create incentives for arson, insider trading, and disaster profiteering.
Kalshi has faced legal setbacks in several states. Last week, a Washington judge ordered the company to stop offering contracts on sports, elections, politics, and other events in the state, finding it likely violated state gambling and consumer protection laws. Two days earlier, the CFTC ordered Kalshi to keep trading amid a separate dispute over New York's attempt to block its contracts.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
In brief CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed during a CFTC roundtable in Washington, D.C. Duffy singled out Kalshi while questioning whether prediction markets face the same regulatory scrutiny as established exchanges. The clash comes amid a fight between federal and state regulators over prediction markets. A CFTC roundtable on prediction markets turned heated Thursday when CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara traded insults over market manipulation and regulation.
The confrontation unfolded during a Commodity Futures Trading Commission meeting in Washington, D.C., as executives from traditional finance, crypto, and prediction markets debated how event contracts should be regulated.
Myriad: Will the Clarity Act be signed into law in 2026? Click to make your prediction.Duffy, whose CME Group operates the world's largest futures exchange by volume, said he was "a lot concerned" about prediction markets and argued that some contracts are susceptible to manipulation.
"We're not a bunch of carnival barkers at a circus," Duffy said. "We are running the most envious markets in the world in the United States of America."
Duffy then took aim at the types of contracts Kalshi offers, mocking one in particular.
"There's another really economic contract that has been massively important for the United States. That's a Nathan's hot dog eating contest," Duffy said sarcastically.
He also questioned why Kalshi could offer a compute prediction market while CME's proposed compute contracts remained under review.
After Kalshi was called out by name, Lara challenged Duffy on CME's own history.
"I just wanted to respond since we were called by name here," Lara said. "I would actually have to ask Terry: Has CME ever had any issues with any market manipulation, any issues ever in its history?"
"If you'd like to have a debate, I'm happy to have a debate with you," Duffy replied.
"I'm just asking a simple answer to a question," Lara said.
"I have more people in my regulatory department than you have in your whole company," Duffy said, referring to the size of CME Group's operation compared to Kalshi.
"Maybe you should learn a bit about efficiency then," Lara fired back.
"Well, maybe you should learn about credible markets," Duffy replied, before moderator Walt Lukken stepped in.
Lara then argued that the problems Duffy raised were not unique to prediction markets.
"Every market has risk and every nascent market will have risks as well, and there have been issues in every single traditional market and every single exchange here, onshore and offshore," she said. "And I think the point of having regulation is that you find these issues, you address these issues, and there's a way to address them in a correct way.”
DraftKings CEO Jason Robins later urged participants to stop attacking each other's businesses.
"I would just ask everybody, both in this hearing and then also in future communications, to try to refrain from taking shots at each other's business models or decisions you may not 100% agree with," Robins said. "That doesn't advance the discussion."
Prediction Markets Face Regulatory Fight
Prediction markets allow their users to wager on the outcome of virtually any event through futures contracts that settle for $1, with the price of the contract implying the odds of the event. For instance, on Myriad—a prediction market operated by Decrypt’s parent company Dastan, the event contract for “Bitcoin highs in August” is priced at 59 cents on the $75K outcome, implying users believe there’s a 59% chance Bitcoin reaches $75,000 before the end of the month.
Myriad: Bitcoin next price move? Click to make your prediction.Prediction market platforms that operate in the United States, like Polymarket and Kalshi, have become the focus of a fight between federal regulators and states over whether contracts tied to sports, elections, and other real-world events are federally regulated derivatives or gambling products subject to state law.
CFTC Chair Selig has defended the agency's jurisdiction over federally regulated prediction markets, warning states challenging that authority in February.
"We will see you in court," Selig said in a video posted to X. The agency has since taken legal action against states seeking to regulate event contracts under their gambling laws.
In June, the CFTC proposed restrictions on certain contracts involving war or assassination and some sports proposition bets considered particularly susceptible to manipulation.
Earlier this month, nine Democratic senators urged Selig to prohibit wildfire event contracts, warning they could create incentives for arson, insider trading, and disaster profiteering.
Kalshi has faced legal setbacks in several states. Last week, a Washington judge ordered the company to stop offering contracts on sports, elections, politics, and other events in the state, finding it likely violated state gambling and consumer protection laws. Two days earlier, the CFTC ordered Kalshi to keep trading amid a separate dispute over New York's attempt to block its contracts.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
Staked supply nearly doubles since FIP.16 announcementFlare Network's total staked supply has hit 20 billion $FLR, according to @FlareNetworks Chief Product Officer Filip Koprivec (@j00sko). That figure has climbed from roughly 11 billion since FIP.16 was first announced in March, putting staked tokens at around 23% of the 86.9 billion $FLR currently in circulation.
The milestone reflects a sharp shift in holder behaviour following the network's most significant tokenomics reform to date. FIP.16, titled "Restructure FLR Tokenomics for Long-Term Network Sustainability," was approved by governance with voting concluding on April 24, 2026. Rollout is phased, with some parameters taking effect shortly after the vote while others require a network hard fork and coordinated releases.
Validator staking rewarded five times more than delegation The Flare Network implemented the FIP.16 protocol update starting with the July 20 reward epoch. The key change reweights payouts, making $FLR staking on the P-Chain worth five times the rewards of C-Chain delegation. This is a fundamental reset designed to incentivise users to lock tokens for network security rather than delegate for liquidity, and it directly targets tokenomics by aiming to reduce liquid supply and structural sell pressure from delegation rewards.
Beyond the staking reweight, FIP.16 introduced broader economic changes. The upgrade cut annual inflation from 5% to 3% and increased the base gas fee 20 times to accelerate the burn rate, directly linking $FLR's value to network usage. FIP.16 also introduces MEV capture and routes a broader set of network revenues through FIRE.
$FLR is trading around $0.0062, up approximately 5% on the day. By making staking more lucrative, the protocol encourages stronger network security and long-term holder alignment.
Sources:
Flare Developer Hub: FLR Token and FIP.16 Overview
Flare Network: From Activity to Value Accrual
Flare Network: Beyond FlareDrops
Hugo Philion, co-founder and CEO of Flare, said Sentora, a major DeFi resource and risk management platform, approved FXRP as an eligible collateral asset.
Philion made the comments in a recent interview with Paul Barron on the Paul Barron Network, where they discussed XRP’s growing use in decentralized finance.
During the interview, Paul Barron noted that XRP ranks around fourth among cryptocurrencies by market capitalization, with a market value of about $70 billion.
However, he pointed out that XRP does not yet have the same role in on-chain lending as Ethereum. According to him, wrapped Bitcoin and stablecoins have already shown how crypto assets can be used as collateral in DeFi.
Barron said this could allow large amounts of idle capital to become more useful. He then asked Philion whether this new use case could help expand XRP’s market base.
Flare Expands XRP Lending Philion said he believes the development should help expand XRP’s market base. He also said Flare has played a leading role in making XRP a collateral asset and has so far seen strong results in this area.
According to Philion, this progress benefits the XRP community, Ripple, and investors who see XRP as an asset worth holding.
The Flare CEO then highlighted the difference between Flare’s current lending setup and the upcoming XLS-66 protocol.
He explained that Flare’s integration with Morpho on mainnet and Sentora allows users to borrow RLUSD, with other stablecoins potentially added later, using XRP as collateral.
With this, a user could provide $1.50 worth of XRP and borrow $1. He said this gives XRP holders a direct way to put their tokens into a lending market and borrow against them.
However, XLS-66 works differently because it focuses on uncollateralized lending. This method would allow borrowers to arrange their credit rating or payment guarantee off-chain.
As a result, Philion said XLS-66 does not provide the same function as Flare’s system, where users can use XRP to borrow dollars. He added that Flare plans to keep expanding this market and develop more products around XRP as collateral.
FXRP Addresses Bridge Risks Barron then called attention to the risks involved in using other crypto assets in DeFi. According to him, there are extra risks that can come from wrapping agents and F-assets, as well as the bridge risks involved when assets move between networks. He asked Philion what Flare had done to reduce these risks.
Responding, Philion said scams remain one of the biggest risks users face, especially on Twitter (now X), where fake accounts often pretend to represent Flare and other projects. As for the bridge itself, he said Flare has tested it extensively and designed its structure with security in mind.
Philion then mentioned Sentora’s review as an important sign of confidence. He said Sentora spent several months carrying out due diligence on FXRP, while many of its partner exchanges also reviewed the asset.
The reviews covered how the bridge operates and how FXRP moves onto Ethereum. After completing those checks, Sentora approved FXRP as an eligible collateral asset.
Philion noted that the decision was a major sign of confidence because Sentora ranks among the largest curators in the DeFi sector.
Because losses could directly affect its business, the Flare co-founder said Sentora has a strong reason to examine the risks carefully before supporting an asset. As a result, he saw its approval of FXRP as an important vote of confidence.
FXRP Expands Across DeFi FXRP launched on the Flare mainnet on September 24, 2025, as the first asset under the FAssets protocol. Flare initially capped minting at 5 million tokens during the first week, which filled almost immediately.
By February 2026, FXRP’s circulating supply had passed 100 million tokens, worth about $140.10 million at the time. Users had minted the tokens through 38,030 transactions, with more than 60% of the supply staked in Flare-native DeFi protocols.
Flare also launched the first XRP spot market on Hyperliquid in January 2026 through an FXRP/USDH pair. FXRP later expanded to the Yellow Network and Coinbase’s Base chain. At press time, Flare held nearly $150 million worth of XRP tokens, while $58 million remained staked on Firelight.
FXRP Current Stats DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
In brief Derive now accepts Flare’s FXRP as collateral for XRP options and perpetual futures. Users can trade through their own wallets without relying on a centralized exchange. Options settle in USDC, exposing traders to margin and liquidation risks. XRP holders can now use Flare’s FXRP as collateral to trade options and perpetual futures on decentralized exchange Derive, Flare announced on Thursday.
According to Flare, users mint FXRP, a token representing XRP on the Flare blockchain, through its FAssets bridge that converts tokens like Bitcoin, XRP, and Dogecoin into ERC-20 tokens on the Flare network. They can then deposit the token into a Derive Portfolio Margin V2 account and trade derivatives from their own wallets.
Myriad: XRP price next move? Click to make your prediction.Options give traders the right to buy or sell an asset at a set price. Perpetual futures allow them to bet on price movements without an expiration date. XRP holders can use the products to hedge against losses, earn premiums by selling options, or speculate on the token’s price.
“Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure,” founder and CEO of Derive, Nick Forster, said in a statement. “FXRP gives one of crypto’s largest holder bases a credible path onchain, and adding Derive’s options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.”
Derive’s XRP options settle in USDC rather than XRP. If an option expires at a profit, Derive pays the difference in the dollar-pegged stablecoin while the FXRP remains posted as collateral. Options sellers must hold enough USDC to cover settlement and maintain the required margin or risk liquidation.
The integration broadens FXRP’s use in decentralized finance. Earlier this month, FXRP was approved as collateral in DeFi risk management firm Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho. That service allows XRP holders to bridge FXRP to Ethereum and borrow Ripple’s RLUSD stablecoin without selling their XRP.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
In brief Derive now accepts Flare’s FXRP as collateral for XRP options and perpetual futures. Users can trade through their own wallets without relying on a centralized exchange. Options settle in USDC, exposing traders to margin and liquidation risks. XRP holders can now use Flare’s FXRP as collateral to trade options and perpetual futures on decentralized exchange Derive, Flare announced on Thursday.
According to Flare, users mint FXRP, a token representing XRP on the Flare blockchain, through its FAssets bridge that converts tokens like Bitcoin, XRP, and Dogecoin into ERC-20 tokens on the Flare network. They can then deposit the token into a Derive Portfolio Margin V2 account and trade derivatives from their own wallets.
Myriad: XRP price next move? Click to make your prediction.Options give traders the right to buy or sell an asset at a set price. Perpetual futures allow them to bet on price movements without an expiration date. XRP holders can use the products to hedge against losses, earn premiums by selling options, or speculate on the token’s price.
“Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure,” founder and CEO of Derive, Nick Forster, said in a statement. “FXRP gives one of crypto’s largest holder bases a credible path onchain, and adding Derive’s options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.”
Derive’s XRP options settle in USDC rather than XRP. If an option expires at a profit, Derive pays the difference in the dollar-pegged stablecoin while the FXRP remains posted as collateral. Options sellers must hold enough USDC to cover settlement and maintain the required margin or risk liquidation.
The integration broadens FXRP’s use in decentralized finance. Earlier this month, FXRP was approved as collateral in DeFi risk management firm Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho. That service allows XRP holders to bridge FXRP to Ethereum and borrow Ripple’s RLUSD stablecoin without selling their XRP.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
XRP holders just got a new DeFi trick: using their tokens as collateral for options trading, all without ever sending them to a centralized exchange. Flare Network’s FXRP, a trustless wrapped version of XRP, is now accepted as collateral on Derive, the decentralized derivatives platform formerly known as Lyra.
The setup works through Flare’s FAssets protocol, which mints FXRP as a 1:1 over-collateralized representation of XRP. The underlying XRP stays parked on the XRP Ledger while the synthetic version moves freely across EVM-compatible chains.
How the plumbing works Flare’s FAssets system creates FXRP by locking XRP on the XRPL and minting an equivalent token on Flare’s network. The “over-collateralized” part means there’s more value backing each FXRP than the token itself is worth, providing a buffer against price swings.
Once minted, FXRP can be used across decentralized protocols just like any other ERC-20 token. On Derive, that means posting it as margin for options contracts and perpetual positions. The platform offers what it describes as institutional-grade trading features, including structured products that go beyond simple spot swaps.
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Blockscout data confirms FXRP activity on-chain, verifying that the integration is live and not just a roadmap promise.
The FAssets protocol launched FXRP on mainnet in September 2025, and a v1.3 update released in May 2026 simplified the minting process. The earlier version required more manual steps and higher friction, which limited adoption. The upgrade streamlined things enough that casual users, not just DeFi power users, could reasonably participate.
Beyond options: FXRP’s expanding footprint Derive isn’t the only venue where FXRP has gained traction. The token has been integrated into Morpho and Mystic, two lending and borrowing platforms, since early 2026. Starting in February 2026, lending markets began accepting FXRP as collateral for yield-generating strategies.
That means an XRP holder can mint FXRP, deposit it into a lending pool, earn yield, and simultaneously maintain exposure to XRP’s price movements. Layer on top of that the ability to write or buy options on Derive, and you’ve got a surprisingly complete financial toolkit built entirely around self-custody.
What this means for XRP and DeFi The Derive integration represents a broader pattern in crypto: assets from non-EVM chains finding ways to participate in Ethereum-adjacent DeFi through wrapped or synthetic representations. Bitcoin has wBTC and cbBTC. Dogecoin has wrapped versions on several chains. Now XRP has FXRP, with the added benefit of over-collateralization baked into the design.
The hedging use case is particularly relevant given XRP’s price history. Holders who weathered volatility without any ability to hedge, besides selling, now have a way to buy protective puts or generate income by writing covered calls.
The risk side of the equation deserves attention too. Over-collateralization protects against some failure modes, but it doesn’t eliminate smart contract risk, oracle failures, or liquidity crunches during extreme market stress. Wrapped assets add a layer of complexity, and each layer introduces potential points of failure. Users posting FXRP as options collateral are stacking multiple protocol risks on top of each other.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
The problem with cross-chain dataMost blockchains have no native way to verify what is happening on other networks. A smart contract on one chain cannot confirm whether a payment settled on another, which is why cross-chain activity has long depended on bridges and trusted intermediaries. @FlareNetworks takes a different approach, using its Flare Data Connector (FDC) to bring verified external data directly on-chain.
According to Flare's developer documentation, the FDC is an enshrined oracle designed to validate external data for Flare's EVM state, allowing smart contracts to consume attested information without relying on users for data integrity.
How the Data Connector worksThe process starts when a developer submits an attestation request for an external event. That could be a payment on the XRP Ledger, a $BTC or $DOGE transaction, or data returned by a Web2 API. Flare's independent data providers each verify the event independently, and their responses are combined into a consensus result.
Once consensus is reached, the verified data is stored as a Merkle root on-chain. Attestation requires more than 50% signature weight from data providers, ensuring decentralized consensus, and only the Merkle root is stored on-chain to minimize costs. Any smart contract can then consume this proof, turning external events into on-chain inputs without trusting whoever supplied the original data.
The FDC and Flare's Time Series Oracle (FTSO) represent what Flare describes as its most advanced and fully decentralized data protocols, empowering the network to acquire price, Web2, and blockchain data quickly and securely.
This architecture also supports a broader roadmap. In conjunction with the FTSO and FDC, applications can be built on Flare that harness price data, process data from other blockchains or Web2 sources, and execute transactions across Flare's connected chains.
FAssets: putting the Data Connector to workThe most concrete application of this infrastructure is FAssets, Flare's system for bringing non-smart-contract tokens into DeFi. With FAssets, assets that were not built for smart contracts can be used in programmable markets: trading, lending, vaults, staking, and cross-chain financial applications.
Flare has launched FXRP, a wrapped version of XRP that can be used in DeFi applications, and is the first live deployment of the FAssets system, which turns non-smart contract tokens like XRP into overcollateralized assets that can interact with DeFi protocols. Flare plans to expand FAssets to $BTC and $DOGE, bringing more non-smart-contract assets into its ecosystem.
Within its first seven months, more than 155 million FXRP had been minted, with most of that supply actively deployed across DeFi.
The Data Connector sits at the centre of this process. The FDC verifies the underlying transaction, and the equivalent FAssets are then minted as ERC-20 tokens on Flare. The result is a system where cross-chain applications are built on verified events rather than bridges alone.
Sources:
Flare Developer Hub: Flare Data Connector Overview
Flare Network: FAssets
The Block: Flare Network launches FXRP to let XRP be used in DeFi apps
XRP holders can now access Ripple USD (RLUSD) liquidity on Ethereum without selling their XRP.
The option became available after Flare integrated FXRP as collateral in Sentora’s institutional RLUSD vault on Morpho.
The launch creates an isolated FXRP/RLUSD lending market on Morpho Blue. Users can mint FXRP on Flare, bridge it to Ethereum, and borrow RLUSD against their holdings in a permissionless and non-custodial way.
FXRP Becomes First XRP Collateral Asset in Institutional Ethereum Vault According to Flare, FXRP is the first XRP representation approved as collateral in an institutionally curated lending vault on Ethereum mainnet.
The integration gives XRP holders access to Sentora’s RLUSD Main vault, which currently holds around $280 million in deposited RLUSD. It is now the largest institutionally curated RLUSD vault on Ethereum.
The new market allows users to keep exposure to XRP’s price while unlocking liquidity through RLUSD loans. Borrowers retain control of their collateral, with no custodial intermediary or whitelist required.
To use the service initially, users must mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum, deposit it into the FXRP/RLUSD market, and borrow RLUSD within the market’s loan-to-value (LTV) limit.
Flare said a simpler process is in development through Flare Smart Accounts. Once launched, it will allow users to access the service directly from the XRP Ledger.
Expanding XRP’s Role in DeFi Flare said the integration addresses one of the biggest challenges facing XRP decentralized finance (DeFi): access to deep stablecoin liquidity.
The company noted that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency.
Flare highlighted the network’s growth after the launch of USDT0 as an example. Following the launch, total value locked (TVL) increased from about $37 million to more than $120 million within two weeks.
By connecting FXRP with institutional RLUSD liquidity, Flare expects borrowing demand on Ethereum to create additional demand for FXRP minted through the FAssets protocol.
Institutional Review Clears FXRP as Collateral Before approving FXRP as collateral, Sentora conducted a risk assessment that examined the asset’s behavior, oracle reliability, and available liquidity for liquidations and withdrawals.
Flare CEO Hugo Philion said the integration marks an important step for XRP’s utility beyond payments.
“XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure. FXRP closed part of it by making XRP programmable. This closes another part. XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet.”
Jesus Rodriguez, Co-Founder and CTO-CPO of Sentora, said enabling FXRP as collateral expands XRP’s role in decentralized credit markets. In his words:
“By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”
More XRP DeFi Integrations Ahead Meanwhile, Flare said the current launch is the first step toward broader XRP-backed lending options. Future updates include direct FXRP minting from the XRP Ledger to Ethereum, removing the need for a separate bridging process.
Flare Smart Accounts are also expected to allow XRP holders to borrow RLUSD directly from the XRP Ledger without using Ethereum interfaces.
The company added that Sentora’s approval could encourage other Morpho vault curators to adopt FXRP as collateral. This could increase the amount of stablecoin liquidity available to XRP holders across decentralized finance.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
New Institutional Backed Lending MarketFlare announced Monday that its wrapped version of XRP, FXRP, has been approved as collateral by Sentora, which manages a $280 million RLUSD lending pool.
The approval enables an isolated FXRP/RLUSD lending market on Morpho Blue, allowing users to deposit FXRP as collateral and borrow RLUSD while maintaining exposure to XRP’s price.
The lending market is permissionless, meaning users do not need to join a whitelist to participate.
The integration gives XRP holders a way to unlock liquidity without selling their tokens, expanding the cryptocurrency’s role in decentralized finance.
Adoption remains an early-stage challenge. Flare said around 155 million FXRP has been minted since launch, compared with its longer-term goal of bringing 5 billion XRP into its ecosystem over the next six months.
XRP Least Utilized Crypto AssetFlare expanded decentralized finance utility for the asset through a new institutional-backed lending market.
Currently, users must mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum using Stargate, deposit the asset into Morpho Blue and borrow RLUSD at their preferred loan-to-value ratio.
Flare said it is developing Smart Accounts that would allow XRP Ledger users to authorize the entire process directly from their wallets, while native XRPL-to-Ethereum minting is also under development.
Flare co-founder and CEO Hugo Philion told CoinDesk that XRP remains one of crypto’s largest assets but one of the least utilized in DeFi, adding that institutional approval of FXRP as Ethereum collateral is more meaningful than simply adding another bridge.
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Flare’s FXRP token has been approved as collateral in an institutionally curated Morpho vault on Ethereum, letting XRP holders borrow Ripple’s RLUSD stablecoin without selling. It is the first time an XRP-based asset has been accepted in a major on-chain lending market.
Summary
Flare’s FXRP, a bridged version of XRP on Ethereum, has been approved as collateral in Sentora’s RLUSD Main vault on Morpho, allowing XRP holders to borrow Ripple’s RLUSD stablecoin without selling their tokens. The integration is the first time an XRP-based asset has been accepted as collateral in an institutionally curated Ethereum lending market, a milestone for an asset that has been almost entirely absent from DeFi. XRP is the fourth largest cryptocurrency by market capitalization at approximately $70 billion, yet its utilization in on-chain lending, borrowing, and liquidity provision has been negligible compared to assets like ETH, WBTC, and stablecoins. Ripple has been building RLUSD as an enterprise-focused stablecoin since August 2024, securing NYDFS approval in December 2024 and a Mastercard settlement integration in July 2026. The Morpho Blue lending protocol uses isolated markets designed to contain risk if problems arise with a specific collateral asset, a structure that makes it possible to onboard newer assets like FXRP without exposing the broader protocol to systemic risk. Introduction XRP is one of the most widely held cryptocurrencies in the world. At roughly $70 billion in market capitalization, it trails only bitcoin, ether, and Tether’s USDT. It has millions of holders, deep liquidity on centralized exchanges, and a history that predates most of the DeFi ecosystem. And yet, until this week, there was no major lending market on Ethereum where XRP holders could borrow against their position.
The reason is infrastructure, not demand. XRP runs on the XRP Ledger, a separate blockchain with its own consensus mechanism and token standard. Ethereum-based DeFi protocols cannot natively interact with XRP. To use XRP in Ethereum lending markets, someone needs to build a bridge, create a wrapped token, and convince a risk team to underwrite it. That process took years for bitcoin (resulting in WBTC), and it has now happened for XRP through Flare’s FXRP token.
On August 3, Flare announced that FXRP has been approved as collateral in Sentora’s RLUSD Main vault on Morpho. XRP holders can now convert their tokens to FXRP, bridge to Ethereum, deposit as collateral, and borrow Ripple’s RLUSD stablecoin. This is not just a technical milestone. It is a test of whether XRP can become a productive DeFi asset after years of sitting idle in wallets.
How the FXRP to RLUSD lending flow works The process involves four steps, each handled by a different protocol.
Step one: XRP to FXRP conversion. XRP holders convert their native XRP tokens into FXRP, Flare’s bridged representation of XRP. Flare is a layer 1 blockchain that has built cross-chain data infrastructure, including the ability to create asset representations that can move between chains.
Step two: bridge FXRP to Ethereum. The FXRP token is bridged from Flare to Ethereum, where it becomes an ERC-20 token that Ethereum-based protocols can recognize and interact with.
Step three: deposit FXRP as collateral on Morpho. The Ethereum-native FXRP is deposited into Sentora’s RLUSD Main vault on Morpho Blue. Sentora, formerly known as IntoTheBlock, serves as the vault curator, meaning it reviews and approves which assets can be used as collateral. Sentora reviewed FXRP’s market behavior, oracle design, liquidity, and liquidation mechanics before granting approval.
Step four: borrow RLUSD. With FXRP deposited as collateral, the user borrows RLUSD, Ripple’s dollar-pegged stablecoin. The loan is overcollateralized, meaning the value of the FXRP deposit must exceed the value of the RLUSD borrowed. Because this is a loan against collateral and not a sale, the borrower retains exposure to XRP’s price movements.
Flare CEO Hugo Philion described the significance in terms of institutional credibility: “XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.”
Why XRP has been absent from DeFi XRP’s absence from DeFi is not accidental. It reflects three structural factors that have kept the asset isolated from the composable lending and borrowing ecosystem that Ethereum-based tokens take for granted.
Separate blockchain architecture. The XRP Ledger uses a different consensus mechanism (the XRP Ledger Consensus Protocol) and token standard than Ethereum. Unlike ERC-20 tokens, which can be natively deposited into any Ethereum smart contract, XRP requires a bridge and a wrapped representation to interact with Ethereum DeFi. Building that bridge securely takes time and auditing resources. The XRP Ledger was designed for payments, not for programmable smart contracts, which means the tooling and standards that Ethereum DeFi relies on do not exist natively on XRPL.
Regulatory uncertainty. The SEC’s lawsuit against Ripple, filed in December 2020 and not fully resolved until 2024, created a chilling effect on DeFi integration. Protocol teams and vault curators were reluctant to add XRP-based collateral when the token’s regulatory status was unclear. DeFi protocols have their own compliance considerations, and adding a token that the SEC claimed was an unregistered security was a risk most teams chose to avoid. The resolution of that case removed the legal overhang but did not immediately produce DeFi infrastructure.
Limited DeFi ecosystem on XRPL. The XRP Ledger has a built-in decentralized exchange and an automated market maker, but its DeFi ecosystem is small compared to Ethereum, Solana, or even newer L2 networks. Most DeFi activity, lending, borrowing, yield farming, and derivatives, happens on Ethereum and its rollups. For XRP holders to participate, they need to leave the XRPL, which until FXRP was not straightforward. The result is that a $70 billion asset has been almost entirely absent from on-chain credit markets, a gap that is disproportionate to its size and liquidity on centralized venues.
The WBTC parallel The closest analogy to what Flare is doing with FXRP is Wrapped Bitcoin (WBTC), which has been operating on Ethereum since 2019. WBTC lets bitcoin holders wrap their BTC into an ERC-20 token, deposit it as collateral on Aave, Compound, and MakerDAO, and borrow stablecoins against it.
WBTC demonstrated that non-native assets can become productive DeFi collateral if the bridge is trustworthy and the lending market is deep enough. At its peak, WBTC had over $15 billion in total value locked. It proved that bitcoin holders wanted to borrow against their positions rather than sell.
FXRP aims to replicate this model for XRP. The key differences are scale (WBTC had years of liquidity building, FXRP is just launching) and custody model (WBTC relies on a centralized custodian, BitGo, while Flare uses a decentralized bridge). Whether FXRP achieves WBTC-level adoption depends on whether XRP holders are willing to bridge their tokens and whether additional lending vaults beyond Sentora add FXRP as collateral. The bridging step is a genuine friction point: WBTC holders only needed to interact with a single custodian, while FXRP holders must navigate Flare’s cross-chain infrastructure before reaching Ethereum. Reducing that friction through improved tooling and wallet integrations is as important to adoption as the lending market itself.
What RLUSD is and why it matters here RLUSD is Ripple’s dollar-pegged stablecoin, designed for enterprise use cases including cross-border payments and institutional settlement. Ripple began testing RLUSD on Ethereum and the XRP Ledger in August 2024 and received approval from the New York Department of Financial Services in December 2024.
RLUSD is not trying to be USDC or USDT. Ripple has positioned it as a compliance-first stablecoin for regulated financial institutions. The Mastercard settlement integration announced in July 2026 is an example: Mastercard will support settlement of regulated stablecoins including RLUSD, USDC, and SoFi’s SoFiUSD. Zand Bank in the UAE began using RLUSD for cross-border payments in early 2026. Ripple has also expanded into Latin America, bringing Bitso’s Mexican peso-backed stablecoin MXNB onto the XRP Ledger in June 2026.
The FXRP/RLUSD lending integration adds a new use case: on-chain borrowing. XRP holders who want dollar liquidity without selling can now borrow RLUSD against their position. If RLUSD is accepted at more venues and payment rails, the utility of borrowing it increases. This creates a flywheel where RLUSD adoption in payments makes RLUSD borrowing more attractive, which drives more FXRP deposits, which deepens the lending market.
The stablecoin landscape itself is shifting rapidly. Circle recently brought USDC to the XRP Ledger, meaning XRPL now supports both RLUSD and USDC natively. This multi-stablecoin approach on XRPL means XRP holders have more options for accessing dollar liquidity, and the FXRP/RLUSD lending market on Ethereum adds yet another path. For Ripple, the strategic play is to make RLUSD the default borrowing currency for XRP-collateralized loans, creating a use case that USDC does not serve.
BREAKING: XRP Ledger sustains over 140 TPS and blocks with up to 987 transactions during today’s big activity wave, maintaining cent-level fees and 3-4 second settlement pic.twitter.com/yaAyCH4wGy
— crypto.news (@cryptodotnews) April 10, 2026 Why Morpho Blue’s isolated market design matters Morpho Blue is a lending protocol that uses isolated markets instead of the shared pool model used by Aave and Compound. In a shared pool, all depositors share risk: if one collateral asset fails, losses can spread across the entire protocol. In Morpho Blue’s isolated markets, each collateral-borrow pair operates independently. A problem with FXRP would affect only the FXRP/RLUSD market, not other lending pairs on the protocol.
This design is what made it possible for Sentora to approve FXRP as collateral. A shared pool protocol would likely have rejected a newly bridged token with limited on-chain history. Morpho Blue’s isolation means the risk is contained, and the vault curator (Sentora) bears the responsibility for evaluating it.
Sentora’s CTO Jesus Rodriguez described the approval as a deliberate expansion of on-chain credit: “XRP is one of crypto’s largest and most liquid assets. Yet it remains surprisingly underused in onchain credit. That changes today.” The framing is significant: this is not a DeFi experiment. It is an institutional risk team making a calculated underwriting decision.
The isolation model also creates a natural price discovery mechanism for FXRP risk. Because each vault has its own interest rate curve determined by utilization, lenders are effectively pricing the specific risk of FXRP collateral rather than having that risk diluted across a shared pool. If the market perceives FXRP bridge risk as elevated, rates in FXRP-collateralized vaults will rise relative to vaults backed by native Ethereum assets. This transparency gives both lenders and borrowers real-time information about how the market values the bridge and custody mechanisms that underpin FXRP.
The $70 billion question XRP has roughly $70 billion in market capitalization. If even 5% of that value migrates into DeFi collateral positions (as happened with bitcoin through WBTC), the result would be $3.5 billion in new collateral available for borrowing. At 10%, it would be $7 billion.
For context, Morpho Blue’s total value locked across all markets is roughly $4 billion. A meaningful flow of XRP into the protocol would make it one of the largest collateral assets on the platform. Whether this happens depends on XRP holder behavior, FXRP bridge trust, and RLUSD utility. But the infrastructure is now in place for the first time.
The peso-backed stablecoin integration on XRPL through Bitso and the USDC expansion to XRP Ledger through Circle show that Ripple is building a multi-stablecoin ecosystem around XRP. The FXRP/RLUSD lending market extends this ecosystem into Ethereum DeFi, bridging two worlds that have historically operated separately.
The comparison to Ethereum’s DeFi trajectory is instructive. When WETH first became available as collateral on Aave and Compound, it took approximately 18 months before the cumulative value locked in ETH-collateralized lending exceeded 5% of ETH’s market capitalization. XRP faces a steeper adoption curve because its holder base skews more retail, with a lower proportion of technically sophisticated users who are comfortable with bridge mechanics and vault management. The institutional channel through Sentora’s curated vaults could accelerate adoption, but institutional allocators typically require six to twelve months of live market data before committing significant capital.
What scale adoption would look like The WBTC adoption curve provides a template for projecting what FXRP could achieve over a multiyear period. When WBTC launched in January 2019, it began with a few million dollars in total value locked. It took roughly 18 months to reach $1 billion, and another year to reach $10 billion as DeFi activity surged through 2020 and 2021. At its peak in late 2021, WBTC held over $15 billion in total value locked across Aave, Compound, and MakerDAO, representing roughly 1.5% of bitcoin’s market cap at the time.
FXRP starts from a different baseline. XRP has no DeFi history to build on, while WBTC launched when bitcoin holders already understood the concept of using cryptocurrency as collateral and had watched earlier DeFi protocols develop lending markets. But XRP’s size, $70 billion in market capitalization, means even a small adoption rate translates to significant absolute TVL. If FXRP captures 0.5% of XRP market cap in collateral, that is $350 million. At 1%, $700 million. At the WBTC peak rate of roughly 1.5%, it would be more than $1 billion.
For Morpho Blue, these numbers are material. The protocol’s total value locked across all markets is roughly $4 billion. A $500 million FXRP collateral pool would represent more than 10% of Morpho’s total market size, making FXRP a top-tier collateral asset and attracting market makers, liquidation bots, and additional vault curators who see FXRP liquidity as worth their infrastructure investment.
The institutional framing matters here. Sentora’s approval is not just a permission to participate; it is a credentialing signal. DeFi protocols are understandably skeptical of bridged assets because bridge exploits have caused billions in losses. An institutional risk team reviewing oracle design, liquidity profiles, and liquidation mechanics before granting approval lowers the barrier for the second and third curator approvals. Morpho’s isolated market architecture means curators can observe how the FXRP/RLUSD market behaves before committing their own vaults, using Sentora’s early data as evidence.
Ripple’s existing institutional relationships give FXRP a distribution channel that WBTC did not have at launch. RLUSD is already integrated with Mastercard settlement, live in Zand Bank UAE, and present on the XRP Ledger alongside USDC. If Ripple’s enterprise payment partners begin borrowing RLUSD against FXRP positions for working capital or treasury management, the institutional use case extends beyond retail speculation. A $10 million working capital facility backed by XRP collateral, accessed through the FXRP bridge and Morpho, is precisely the kind of product that Ripple’s enterprise sales network can take to existing RLUSD clients. That commercial distribution path distinguishes FXRP from purely retail-driven bridged tokens and gives the collateral market a demand source that does not depend on DeFi sentiment cycles.
The risk of bridge-based DeFi collateral The FXRP model introduces risks that native Ethereum tokens do not carry. Every step in the flow, XRP to FXRP conversion, bridging from Flare to Ethereum, oracle pricing, and Morpho vault liquidation, represents a potential failure point.
Bridge exploits are the most expensive category of smart contract hacks in crypto history. Cross-chain bridges have caused over $4 billion in losses since 2021, including the Ronin ($624 million), Wormhole ($326 million), and Nomad ($190 million) exploits. Each of these hacks targeted the trust assumptions that allow assets to move between chains. The FXRP bridge uses Flare’s decentralized infrastructure, which is architecturally different from the compromised bridges, but the risk category is the same: any vulnerability in the bridge could result in unbacked FXRP tokens on Ethereum, which would make the Morpho collateral worthless.
Oracle risk is the second concern. The Morpho vault needs an accurate, manipulation-resistant price feed for FXRP to trigger liquidations at the right time. If the oracle diverges from the true market price of XRP, two outcomes are possible: premature liquidations that harm borrowers, or delayed liquidations that leave lenders with bad debt. Sentora reviewed the oracle design before approving FXRP, but the limited on-chain history of the token means the oracle has not been tested under extreme market conditions.
Liquidity risk is the third factor. If a borrower’s FXRP collateral needs to be liquidated, there must be sufficient FXRP liquidity on Ethereum for liquidators to sell the seized tokens. A thin FXRP market could result in liquidators being unable to recover the full value of the loan, creating losses for RLUSD lenders. This is a bootstrapping problem: liquidity improves as adoption grows, but adoption depends on liquidity being sufficient from the start.
Historical precedent suggests bridge exploits follow a pattern. The Ronin bridge lost $625 million in March 2022 when attackers compromised validator keys. The Wormhole bridge lost $320 million a month earlier through a signature verification bypass. In both cases, the underlying assets on the source chain were unaffected, but the wrapped representations on the destination chain became worthless. For FXRP holders using Morpho vaults, a Flare bridge compromise would mean their collateral evaporates while their loan obligations remain. The asymmetry between borrower and lender risk in a bridge failure scenario is one of the least discussed aspects of cross-chain DeFi collateral.
What would invalidate this thesis The bullish read is that FXRP opens a new chapter for XRP in DeFi. The bearish read is that XRP holders have shown little interest in DeFi historically, and a bridged token on an unfamiliar protocol will not change that behavior.
If FXRP deposits remain below $50 million after six months, the integration was a technical success but a commercial failure. If the FXRP bridge suffers a security incident, trust in the model collapses. If RLUSD itself fails to gain traction beyond a few institutional partnerships, the borrowing side of the market dies. And if XRP’s price drops significantly, FXRP collateral positions get liquidated, creating negative feedback loops that discourage further deposits.
Regulatory risk adds another dimension. If regulators classify FXRP as a derivative or synthetic asset rather than a direct representation of XRP, the compliance burden on institutional vaults could make the product uneconomical. The SEC has not issued guidance on wrapped or bridged tokens as a distinct category, and enforcement actions in adjacent areas suggest the regulatory framework remains uncertain. A single enforcement action against a bridged asset product could freeze institutional participation across the entire category.
What to watch FXRP total value deposited on Morpho. The single most important metric. If deposits reach $500 million within six months, XRP holders are adopting DeFi collateral use cases. If deposits stall below $100 million, adoption has failed.
RLUSD circulating supply growth. Track whether the lending integration drives new RLUSD minting. If borrowing demand increases RLUSD supply, the flywheel is working.
Additional vault curators adding FXRP. Sentora is the first. If other curators like Gauntlet, Block Analitica, or Steakhouse Financial add FXRP vaults, the collateral is gaining broader institutional acceptance.
Flare bridge security. Any exploit or significant downtime on the FXRP bridge would damage trust in the model. Track audit reports, bridge volume, and incident history.
XRP DeFi TVL relative to market cap. Currently near zero. Bitcoin’s WBTC TVL as a percentage of BTC market cap reached roughly 1.5% at peak. If FXRP reaches even 0.5% of XRP market cap ($350 million), it would represent meaningful DeFi adoption.
Frequently asked questions What is FXRP? FXRP is Flare’s bridged version of XRP that operates as an ERC-20 token on Ethereum. It allows XRP holders to use their tokens in Ethereum-based DeFi protocols without selling the underlying XRP.
What is RLUSD? RLUSD is Ripple’s dollar-pegged stablecoin, designed for enterprise use cases including cross-border payments and institutional settlement. It was approved by the New York Department of Financial Services in December 2024 and launched on Ethereum and the XRP Ledger.
How does XRP lending on Morpho work? XRP holders convert XRP to FXRP on Flare, bridge FXRP to Ethereum, deposit it as collateral in Sentora’s RLUSD vault on Morpho Blue, and borrow RLUSD against their position. The loan is overcollateralized and retains the borrower’s exposure to XRP price movements.
Why has XRP been absent from Ethereum DeFi? XRP runs on a separate blockchain (the XRP Ledger) that cannot natively interact with Ethereum smart contracts. The SEC lawsuit against Ripple also discouraged DeFi protocol teams from integrating XRP-based assets until the case was resolved.
What is Morpho Blue? Morpho Blue is a lending protocol that uses isolated markets instead of shared pools. Each collateral-borrow pair operates independently, containing risk and making it possible to onboard newer assets like FXRP without exposing the broader protocol.
How is FXRP different from WBTC? Both are bridged representations of non-Ethereum assets. WBTC uses a centralized custodian (BitGo) to hold the underlying bitcoin, while FXRP uses Flare’s decentralized bridge. WBTC has years of liquidity history and widespread DeFi integration; FXRP is just launching.
What is Sentora’s role? Sentora (formerly IntoTheBlock) is the vault curator that reviewed and approved FXRP as collateral for the RLUSD lending market on Morpho. Curators evaluate collateral assets for market behavior, oracle design, liquidity, and liquidation mechanics before granting approval.
Could this model expand to other assets? Yes. The FXRP/Morpho model could be replicated for other non-Ethereum assets that have large market capitalizations but limited DeFi presence. The success or failure of the FXRP integration will likely influence whether curators approve similar bridged tokens in the future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The information presented is based on publicly available reports and announcements as of August 3, 2026. Always conduct your own research before making investment decisions.
FXRP clears its first institutional lending vault on EthereumXRP holders have a new way to put their assets to work. Flare's (@FlareNetworks) FXRP is now approved as collateral in Sentora's RLUSD Main vault on @Morpho, marking the first time a version of XRP has been accepted as collateral in an institutionally managed lending vault on Ethereum.
The mechanics are straightforward. Users mint FXRP on Flare, bridge it to Ethereum through Stargate, deposit FXRP into the lending market on Morpho Blue, and borrow RLUSD against their collateral. Throughout the process, XRP exposure stays intact.
The lending market sits inside Sentora's RLUSD Main vault, which holds roughly $280 million in RLUSD deposits, making it the largest institutionally managed RLUSD vault on Ethereum.
Sentora said it reviewed FXRP's market behaviour, oracle design, liquidity, and liquidation mechanics before approving it as collateral. Flare CEO Hugo Philion (@HugoPhilion) framed that review as meaningful in itself, noting that "XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing."
A WBTC moment for XRPThe model draws a direct comparison to Wrapped Bitcoin (WBTC), which lets Bitcoin holders use their BTC in Ethereum-based DeFi without selling. FXRP is designed to do the same for XRP, giving holders access to Ethereum lending markets.
The timing aligns with broader momentum behind Ripple's stablecoin. RLUSD operates on both the XRP Ledger and Ethereum, with the dual-chain design tapping into Ethereum's DeFi ecosystem while leveraging XRPL's fast, low-cost payment network. RLUSD is issued under a NYDFS Trust Charter.
The XRP community has historically had limited access to sophisticated DeFi strategies, but Flare has been building the foundations for XRPFi through FXRP and a growing set of integrations. Flare is also working on direct FXRP minting from the XRP Ledger to Ethereum, which would remove the separate bridge step and make the process faster.
For now, the infrastructure is in place. One of crypto's largest assets has spent years sitting idle. Plugging it into onchain credit is how that changes.
Sources
Decrypt: XRP Holders Can Now Borrow Ripple's RLUSD on Ethereum Without Selling Their Crypto
AltcoinBuzz: FXRP Becomes First XRP Collateral for RLUSD Loans on Ethereum
Flare Network: First-ever modular lending for XRP debuts on Flare via Morpho and Mystic
Flare, a popular Ethereum-based L1 chain for trusted decentralized data access, has recently obtained an exclusive authorization for its wrapped $XRP, $FXRP. In this respect, Flare has gained the approval to use $FXRP as a collateral asset for institutional lending in the Morpho-based $RLUSD Main vault of the DeFi lending infrastructure provider, Sentora.
As per Flare’s official press release, the development lets users borrow $RLUSD without losing $XRP exposure by leveraging $FXRP in the form of collateral. The move denotes the 1st approval for an $XRP representation in the form of collateral within an institutionally curated vault for lending services.
$FXRP Broadens $XRP Use Cases in Ethereum-Based DeFi The authorization for Flare’s $FXRP for $RLUSD lending collateral in Sentora’s Morpho-based RLUSD Main vault is set to bolster the role of $XRP in the DeFi sector. The respective vault is effectively managing almost $280M in the form of deposited $RLUSD, becoming the biggest vault for institutionally curated $RLUSD on Ethereum.
The new $FXRP/$RLUSD market reportedly runs on Morpho Blue, which is a permissionless lending entity that lets consumers create separate lending markets. With the FAssets system of Flare, those holding $XRP can seamlessly mint $FXRP.
Additionally, they can also bridge the minted $FXRP to Ethereum, then deposit it in the form of collateral, and ultimately borrow $RLUSD tokens without the liquidation of $XRP in their holdings. The respective mechanism provides investors with consistent exposure to $XRP’s price while unveiling stablecoin liquidity for use across diverse DeFi applications.
Authorization Paves Way for Further DeFi Integration of $FXRP Hugo Philion, the CEO and Co-founder of Flare, said, “XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.” So, this underscores another key step toward $XRP’s inclusion into mainstream DeFi.
Additionally, Jesus Rodriguez, the CTO-CPO and Co-founder of Sentora, mentioned, “By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”
According to Flare, the lending market is set to initially go live with a relatively conservative supply for risk management during the 1st stages. Simultaneously, $FXRP will stay under consistent monitoring via the institutional benchmarks set for the other authorized collateral assets. Overall, by making $FXRP a key $RLUSD collateral for institutions, the launch could push Morpho curators, DeFi applications, exchanges, and wallets to integrate it into additional lending markets.
AUTHOR
Crypto journalist with years of experience providing in-depth analysis and news on blockchain and decentralized finance. With a keen eye for detail, Shahzaib delivers insightful articles that explore the latest trends, market movements, and innovations within the crypto and blockchain ecosystem. His work focuses on educating readers while offering expert commentary on the evolving landscape of digital assets, DeFi protocols, and the broader impact of blockchain technology.
Amid the ongoing downtrend, the Flare (FLR) token appears to be following the same pattern XRP witnessed before its 2017 rally.
Flare (FLR) remains under pressure as the broader crypto market continues its prolonged decline. Despite this weakness, its long-term chart has started to resemble the pattern XRP formed before its historic rally during the 2017 bull market.
This pattern involves a series of lower highs that XRP recorded before its massive breakout. While matching chart patterns do not guarantee the same outcome, the similarities raise questions about whether FLR could eventually stage a comparable move if market conditions improve.
XRP Built a Series of Lower Highs Before Its Historic Rally For context, XRP produced one of the biggest rallies in crypto history during the 2017 bull cycle. Specifically, the token climbed from $0.005 in March 2017 to $3.31 in January 2018, delivering a remarkable 66,100% gain in less than a year.
However, before the rally, XRP spent several years forming lower highs. The asset first climbed to $0.0435 in December 2013, marking the peak of its first major bull run.
XRP Pattern Before 2017 Run It later dropped during the following bear market before recovering in November 2014. However, this rebound only carried XRP to $0.0280 by December 2014, leaving it below the $0.0435 high reached a year earlier.
After peaking at $0.0280, XRP pulled back again. When it recovered in December 2015, it reached only $0.0091, creating another lower high compared to the December 2014 peak.
From there, XRP entered a steady decline that pushed the price down to $0.005 in March 2017, where it found its bottom. This low marked the beginning of the token’s historic rally to $3.31, which rewarded investors who held through the long downturn.
Flare Has Traced a Similar Path Flare now appears to be following a similar pattern. Notably, the token climbed to about $0.048 in February 2024 before meeting resistance and pulling back during a broader market correction.
As the crypto market recovered in November 2024, FLR also moved higher. However, the recovery reached only $0.036 by December 2025, creating a lower high compared to the $0.048 peak recorded in February 2024.
Flare Following the Same Pattern After reaching $0.036, FLR entered another correction that lasted until April 2025. The token then started another recovery but managed to rise only to $0.0287 in September 2025, forming yet another lower high.
Since reaching $0.0287, FLR has remained in a broader market downturn that has continued to push its price lower. The token now trades around $0.006, which brings it close to the $0.005 level where XRP bottomed before its explosive rally in 2017.
Similar Patterns Do Not Guarantee Similar Results However, it is important to note that the similarities between the two charts do not guarantee that FLR will repeat XRP’s historic performance.
The current market environment also differs from the one XRP experienced in 2017. The altcoin market has become much more crowded, with thousands of additional tokens competing for investor capital. Because of that, attracting enough money to fuel a 66,000% rally may be much more difficult for Flare.
However, FLR would not need to match XRP’s full performance to deliver significant returns. If the token achieved just one-quarter of XRP’s historic rally, it would still gain about 16,500% from its current price of $0.006. Such a move would push FLR to a new all-time high of nearly $1.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
A fraudulent website impersonating Flare Network drained 3.4 million $XRP from 71 investors in South Korea in just eight days last October, the Seoul Metropolitan Police Agency confirmed on July 30. At the time of the theft, the stolen tokens were worth approximately $8.5 million, though investigators say the full scale of the operation may be far larger.
How the scam worked According to the Seoul Metropolitan Police Agency's Cyber Investigation Unit, the suspects created a fake website called Fxrpntwork.com between October 16 and October 23, 2025. The group launched the fake website just after the FXRP token launch, exploiting the genuine project's name and early momentum to lend it credibility. Police records show the operators promised guaranteed principal and monthly returns of 1.5% to 1.8%.
To make the scheme look real, the group flooded the internet with fake promotional content across Naver blogs, Tistory, Wikipedia pages, online news articles, and YouTube videos, some featuring paid actors pretending to review the platform. Investors were instructed to withdraw XRP from South Korean exchanges, move funds through overseas trading platforms, and deposit them into wallets controlled by the group. This method helped avoid South Korea's strict monitoring systems for large crypto transfers. Once the funds had accumulated, the site went offline on October 23 and the operators disappeared.
Investigation and arrests The investigation began after an overseas cryptocurrency exchange reported suspicious XRP movements to South Korean authorities. Investigators traced 27.3 billion won ($18.8 million) through wallets linked to the group and immediately froze 17.3 billion won of those assets on overseas exchanges. Another roughly 10 billion won moved during the probe and remains unaccounted for, which could indicate additional victims beyond the 71 identified.
Two men were detained on aggravated fraud charges and a third accomplice remains at large at an unknown overseas location. Seoul police obtained an arrest warrant and requested an Interpol Red Notice for the fugitive. Authorities are also pursuing a broader cleanup of crypto-related crime in the country. "We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy," a Seoul police official said, urging investors to verify any investment claims before depositing funds.
Sources:
Benzinga: XRP Scam in South Korea Defrauds Investors of $19 Million
CoinCodex: Fake Flare Network Site Drains $8.5M Worth of XRP
GNCrypto News: Fake Flare Staking Site Stole $8.5M in XRP, Seoul Police Say
In brief A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police said. Police say the operators impersonated Flare Network and FXRP, and seeded blogs, articles and YouTube with false information. Investigators traced 27.3 billion won ($18.8 million) through wallets linked to the group and froze 17.3 billion won of it. A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police say. Two men, both 29, have been referred to prosecutors on aggravated fraud charges, local outlet Chosun reported Thursday.
According to police, the site, Fxrpntwork.com, impersonated Flare Network and its FXRP token, both legitimate projects, and promised monthly returns of 1.5% to 1.8% with principal guaranteed. Investors were allegedly directed to move XRP off domestic exchanges, through overseas venues, and into wallets the group controlled, before the site shut down on October 23 and the operators disappeared.
A fake evidence basePolice said the group planted false information on portal blogs, online news articles and Wikipedia, and produced YouTube videos featuring a paid stand-in, so anyone researching the project found what looked like independent corroboration. The scheme followed FXRP's actual launch the month before.
The stand-in, 34, has been charged with fraud. Police put average losses at 173 million won ($119,000) a victim across the week the site was live.
Police froze 17.3 billion won of assets across overseas exchanges as soon as they detected the scheme. Another 10 billion won moved during the investigation and is unaccounted for, they said. Together that is the 27.3 billion won ($18.8 million) investigators traced through wallets linked to the group, well above the 12.3 billion won confirmed lost by the 71 known victims, which police say points to more.
An overseas exchange tipped off police last October about a surge in staking fraud. Investigators executed 54 search and seizure warrants, arrested one suspect at a hideout after he returned from abroad, and picked up the others in sequence. A fourth man, also 29, is overseas under an Interpol Red Notice. None of the four has been tried, and police have not made their identities public.
South Korean police have brought a run of crypto cases this year, including June's charges against 23 people over laundering $11.1 million in USDT for a Cambodia-based phishing ring. Investigators said they would treat crypto fraud with "zero tolerance," and urged investors to check official sources before sending funds.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
In brief A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police said. Police say the operators impersonated Flare Network and FXRP, and seeded blogs, articles and YouTube with false information. Investigators traced 27.3 billion won ($18.8 million) through wallets linked to the group and froze 17.3 billion won of it. A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police say. Two men, both 29, have been referred to prosecutors on aggravated fraud charges, local outlet Chosun reported Thursday.
According to police, the site, Fxrpntwork.com, impersonated Flare Network and its FXRP token, both legitimate projects, and promised monthly returns of 1.5% to 1.8% with principal guaranteed. Investors were allegedly directed to move XRP off domestic exchanges, through overseas venues, and into wallets the group controlled, before the site shut down on October 23 and the operators disappeared.
A fake evidence basePolice said the group planted false information on portal blogs, online news articles and Wikipedia, and produced YouTube videos featuring a paid stand-in, so anyone researching the project found what looked like independent corroboration. The scheme followed FXRP's actual launch the month before.
The stand-in, 34, has been charged with fraud. Police put average losses at 173 million won ($119,000) a victim across the week the site was live.
Police froze 17.3 billion won of assets across overseas exchanges as soon as they detected the scheme. Another 10 billion won moved during the investigation and is unaccounted for, they said. Together that is the 27.3 billion won ($18.8 million) investigators traced through wallets linked to the group, well above the 12.3 billion won confirmed lost by the 71 known victims, which police say points to more.
An overseas exchange tipped off police last October about a surge in staking fraud. Investigators executed 54 search and seizure warrants, arrested one suspect at a hideout after he returned from abroad, and picked up the others in sequence. A fourth man, also 29, is overseas under an Interpol Red Notice. None of the four has been tried, and police have not made their identities public.
South Korean police have brought a run of crypto cases this year, including June's charges against 23 people over laundering $11.1 million in USDT for a Cambodia-based phishing ring. Investigators said they would treat crypto fraud with "zero tolerance," and urged investors to check official sources before sending funds.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
Last October, a fake staking site that operated for eight days stole 3.4 million XRP from 71 investors. This amount is equivalent to $8.5 million. Seoul police stated that this fraudulent operation deceived investors by impersonating Flare Network and FXRP. The fake site promised investors monthly returns of 1.5% to 1.8%, while claiming that the principal was guaranteed.
Details of the Fraud The fraud operation tricked investors into withdrawing their XRP from local exchanges and transferring it to wallets controlled by the scammers via offshore platforms. The site shut down on October 23, and the operators disappeared. Police revealed that the scammers spread misinformation on platforms such as portal blogs, online news articles, and Wikipedia, and produced videos using a paid stand-in on YouTube.
Police Investigation and Its Outcomes Seoul police tracked assets worth a total of 27.3 billion won ($18.8 million) related to the fraud and froze 17.3 billion won. Two individuals linked to the fraud were referred to prosecutors on charges of aggravated fraud. Additionally, another person is being prosecuted on charges of forgery in connection with the fraud. Police issued 54 search and seizure warrants related to the fraud and arrested one suspect who had returned from abroad and was hiding.
South Korean police have announced a zero-tolerance policy against cryptocurrency scams this year and warned investors to verify official sources before sending funds. This is seen as part of increased vigilance and measures against cryptocurrency fraud in South Korea.
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A fake Flare Network staking site has drained 3.4 million XRP (CRYPTO: XRP) from 71 investors, with total losses potentially reaching $19 million as investigations continue, according to a report by the Seoul Metropolitan Police Agency on Thursday.
How The Scam Actually WorkedAs South Korean news outlet Chosun reported, the fraudulent site operated from October 16 to October 23, 2025, promising investors monthly returns of 1.5% to 1.8% on XRP deposits.
The scammers built credibility by using the name of a genuine blockchain project and spreading fake advertising across Naver blogs, online news articles, Wikipedia, and YouTube.
Two men were detained on aggravated fraud charges and a third accomplice remains at large at an unknown overseas location, Chosun reported.
Seoul police obtained an arrest warrant and requested an Interpol Red Notice for the fugitive, according to Korea JoonAng Daily.
Why Flare Network Was The TargetFlare Network has deep roots in the XRP ecosystem, debuting in early 2023 and reporting over $160 million in total value locked as of late March 2026, with more than 887,000 active addresses.
Its real-world credibility made it an effective cover for the scammers to exploit.
“We will strictly respond to cyber frauds involving cryptocurrency under a zero-tolerance policy,” a Seoul police official said, according to Korea JoonAng Daily, urging investors to verify any investment claims before depositing funds.
How Big Is The Broader Crypto Scam Problem?Crypto analytics firm Chainalysis estimated in January that scammers and fraudsters stole as much as $17 billion in cryptocurrency worldwide during 2025.
Criminals increasingly relied on impersonation tactics and artificial intelligence to target victims at scale, the firm added.
The Seoul case fits that pattern precisely — a convincing fake of a legitimate project, amplified through mainstream platforms, targeting retail investors drawn in by yield promises that real staking products rarely match.
XRP Price Update — July 30, 2026Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Ripple (XRP) holds modest gains, trading around $1.08 at the time of writing on Wednesday. The remittance token mirrors the general neutral-to-bullish outlook in the crypto market, as focus shifts to the Federal Reserve (Fed) rate decision.
Market participants widely expect the Fed to leave interest rates unchanged in the 3.50%-3.75% range. Still, CME’s FedWatch tool shows a 35% probability that the central bank will hike interest rates by 25 basis points (bps), underscoring prevailing market uncertainty.
FedWatch tool | Source: CME GroupFlare enhances XRP DeFi utilityFlare Network’s Flare Smart Accounts (FSA) v1.3 has announced improvements to the process of staking XRP to earn yield in the decentralized finance (DeFi) space. Billions of XRP, which have been sitting in wallets, can now easily be connected to smart contracts through a collapsed single XRP Ledger (XRPL) signature process.
Flare stated in the press release that “previously, the flow required two separate XRPL signatures. v1.3 merges them into one. Pick a vault, sign once from the XRPL wallet you already use, and FSA handles the rest on Flare automatically.”
The one-signature process also operates on key principles, including a non-custodial service, without requiring a new Ethereum Virtual Machine (EVM), gas token or manual bridging. The collateralized XRP remains on the XRPL, backed at a 1:1 ratio, under the holders' control. Moreover, the platform automatically mints FXRP, which is deposited into the chosen vault to start earning.
“Authorization is proof-based, not signature-verification-based. Custody is non-custodial. No separate EVM key, no session-key delegation, no third party holding funds,” Flare expounded.
Technical outlook: XRP poised to extend reboundXRP edges higher, albeit gradually, with the immediate upside capped below $1.10. Despite the short-term neutral-to-bullish outlook, demand for related digital investment products remains sluggish.
SoSoValue data shows that interest in XRP spot Exchange-Traded Funds (ETFs) dried up amid muted activity on Tuesday. This comes after very mild inflows of $592,000 on Monday, undermining risk appetite. Nevertheless, cumulative inflows hold steady at $1.5 billion, with net assets at $972 million, suggesting that investors remain committed to XRP in the long term.
XRP ETF flows | Source: SoSoValueThe remittance token remains under clear downside pressure as price holds below the 50-day Exponential Moving Average (EMA) at $1.13, with the 100-day EMA at $1.22 and the 200-day EMA at $1.42 reinforcing a dominant bearish structure overhead.
The SuperTrend indicator at $1.16 also sits above spot, suggesting rallies are still being treated as corrective. Momentum signals are soft rather than washed out, with the Relative Strength Index (RSI) hovering near 46 on the daily chart and the Moving Average Convergence Divergence (MACD) histogram marginally negative, hinting that sellers retain the upper hand but without capitulation.
XRP/USDT daily chartOn the topside, immediate resistance is seen at the 50-day EMA around $1.13, where any rebound would first be challenged, followed by the SuperTrend zone near $1.16, which forms a secondary cap. Further up, the 100-day EMA at roughly $1.22 and the 200-day EMA near $1.42 outline broader recovery hurdles that would need to be reclaimed to ease the prevailing bearish bias. On the downside, investors may need to rely on former horizontal support levels such as $1.05 and $1.00 to gauge whether to reengage.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
The update makes DeFi access easier by reducing the approval process to a single wallet signature.
Flare has introduced Smart Accounts version 1.3 to simplify how XRP holders access decentralized finance (DeFi) without changing their existing wallet. The update also removes the need to create separate wallets, manually bridge assets, or manage gas tokens before using DeFi services.
According to a press release sent to CryptoPotato, users now need only a single wallet signature to access DeFi. Previously, the process required two separate approvals.
How Smart Accounts Version 1.3 Works Under the new version, users approve a single transaction from their XRP Ledger wallet. The system then converts their XRP into FXRP and automatically deposits it into a selected yield vault.
The Flare Data Connector verifies the XRP Ledger transaction before a smart contract completes the remaining steps. Flare said the original XRP remains locked on the XRP Ledger at a one-to-one ratio throughout the process.
This setup allows users to retain control of their assets while removing the need for manual bridging or obtaining gas tokens on another blockchain. The simplified process comes as FXRP activity across decentralized finance platforms continues to expand.
Since February, the amount of FXRP deployed across DeFi applications has grown by nearly 75%, rising from 82 million to 144 million. Flare also reported that more than 40 million XRP is currently earning through Smart Accounts across nearly 24,000 accounts.
New Vaults and Broader Wallet Integration Commenting on the update, Chief Product Officer Filip Koprivec said millions of XRP holders had wanted access to DeFi, but the experience had been too complex. He said version 1.3 lets users move from XRP to yield with a single wallet signature while remaining fully non-custodial.
You may also like: Ripple (XRP) News and Price Update: July 27 Ripple (XRP) ETF Inflows Set Another Record, but One Problem Remains Do People Interested in XRP Actually Care About Ripple? The version also expands the available yield options with two vaults offering different approaches. Users can continue using the Monarq vault or choose the new Clearstar Flare XRP Yield Vault, which uses on-chain lending and liquidity strategies.
According to the company, the Clearstar vault distributes FXRP across protocols including Avant and Euler while keeping all positions publicly visible. Flare added that Clearstar has previously managed more than 33 million FXRP through earlier deployments.
The update also expands wallet support to Ledger, Xaman, Joey Wallet, WalletConnect, including Bifrost, and D’CENT. Joey Wallet has integrated the Smart Accounts interface directly into its application, allowing users to complete the process without leaving the wallet.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Flare launches Flare Smart Accounts v1.3, enabling XRP holders to access DeFi vaults with a single XRPL wallet signature.
Summary
Flare has launched Smart Accounts v1.3, simplifying FXRP minting and yield farming for XRP holders without manual bridging. XRP holders can now access DeFi with a single XRPL signature following the release of Flare Smart Accounts v1.3. Flare Smart Accounts v1.3 streamlines XRP DeFi access, enabling one-signature deposits into yield-generating vaults. Flare today announced the release of Flare Smart Accounts (FSA) v1.3, making it possible for XRP holders to mint FXRP and deposit it into yield-generating vaults with a single XRPL signature.
For XRP holders, accessing DeFi has often meant creating new wallets, bridging assets between chains, and managing gas tokens before earning a single dollar in yield. Flare Smart Accounts v1.3 removes much of that complexity. Users can now choose a vault, sign once using the XRPL wallet they already use, and Flare completes the rest automatically. No separate EVM wallet, gas token, or manual bridging is required.
The update builds on growing momentum for XRPFi. Since February 2026, the amount of FXRP deployed in DeFi has grown by nearly 75%, increasing from 82 million to 144 million FXRP. More than 40 million XRP is currently earning yield through Flare Smart Accounts, while nearly 24,000 Smart Accounts have already been created.
“Millions of XRP holders have wanted access to DeFi, but the experience has been too complex,” said Filip Koprivec, CPO at Flare network. “With Smart Accounts v1.3, users can go from XRP to yield with a single signature while remaining fully non-custodial.”
The update reduces what previously required two separate XRPL signatures to a single transaction. The user’s XRP remains secured on XRPL through FXRP’s 1:1 collateral model while Flare mints FXRP and deposits it into the selected yield strategy. Behind the scenes, the Flare Data Connector (FDC) verifies the XRPL transaction on Flare, allowing a smart contract linked to the user’s XRPL address to carry out the requested actions automatically.
The release also expands the range of yield strategies available through Flare Smart Accounts with the addition of the Clearstar Flare XRP Yield Vault. Users can now choose between two actively managed FXRP vaults with different approaches to generating yield.
The Monarq XRP Yield Vault, operated by Monarq, majority-owned by FalconX, combines options, basis trading, funding-rate capture, and on-chain DeFi strategies, dynamically adjusting allocations as market conditions change. The newly added Clearstar Flare XRP Yield Vault takes a fully on-chain approach, deploying FXRP across lending and liquidity protocols on Flare, including Avant and Euler. Every position is publicly verifiable on-chain, and the strategy has previously managed more than 33 million FXRP in deposits.
Flare is also expanding access by adding support for Ledger, Xaman, Joey Wallet, and WalletConnect, including Bifrost. These integrations join the existing D’CENT support, allowing more XRP holders to access Flare’s yield infrastructure through the wallets they already use.
As part of the release, Joey Wallet, a self-custodial XRPL wallet with under-3-second onboarding and social login support via Web3Auth, now embeds Flare Smart Accounts directly as an in-wallet dApp. Users can mint FXRP and deposit into yield vaults without leaving the wallet.
“There’s a lot of overlap between the XRPL and Flare communities, so integrating Flare Smart Accounts just made sense,” said Christopher Troia, Co-Founder of Joey Wallet. “It brings a breath of fresh air for XRP holders, letting them start putting their XRP to work in a seamless way.”
Users can get started at fsa.flare.network/vaults or through supported wallets, including Joey Wallet, Xaman, and D’CENT.
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Flare Networks CEO Hugo Philion has announced plans to scale FAssets technology to Bitcoin through the wrapped FBTC token. Against the backdrop of a prolonged industry slowdown, which Philion described as "the market sucks, but not forever," the project is attempting to turn Flare into a programmable layer for the isolated assets.
Last Sunday, Flare announced a major six-month roadmap with the XRP Ledger (XRPL). Right now, the FAssets system allows users to convert coins into FXRP tokens at a 1:1 ratio, giving holders access to staking, lending and liquidity pools.
FXRP issuance has already exceeded 150 million tokens and, over the next six months, Flare aims to attract up to 5 billion XRP, or around 5% of the total supply.
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Philion intends to bring the same model to Bitcoin through FBTC. The main argument for attracting large capital will be confidential computing technology — Flare Confidential Compute (FCC), based on trusted execution environments (TEEs).
Privacy for Bitcoin whalesFCC addresses a fundamental problem in DeFi — the complete transparency of blockchains, which discourages institutional investors. The technology will allow funds to execute large transactions and take out loans while keeping commercial data hidden from competitors.
Although Flare is fully funded and is not at risk of shutting down, Philion is not promising an immediate surge in prices.
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Though the next six months will be devoted exclusively to deploying the code, large players will need more time to audit the bridges, while lending protocols will require a massive inflow of stablecoins such as USDT and USDC.
Meanwhile, growing cross-chain activity already keeps network TVL above $200 million and directly feeds protocol revenue into FIRE, an updated value-accrual mechanism that automatically buys back and burns native FLR tokens to drive long-term ecosystem scarcity.
@FlareNetworks has shipped Smart Accounts v1.3, cutting the steps required for $XRP holders to access decentralized finance down to a single wallet signature.
One signature, no new wallets The update allows XRP holders to mint FXRP, Flare's tokenized representation of XRP for DeFi applications, and deposit it into yield-generating vaults using a single XRP Ledger (XRPL) signature. Previously, accessing XRPFi through Flare required two separate XRPL signatures along with additional wallet setup and bridging steps.
The process relies on the Flare Data Connector (FDC), which verifies the XRPL transaction on Flare. After verification, a smart contract linked to the user's XRPL address executes the remaining actions without requiring additional user interaction. Flare said the original XRP remains locked on the XRP Ledger at a one-to-one ratio throughout the process. The update also eliminates the need for a separate EVM wallet, gas tokens, and manual bridging.
New vault, broader wallet support and rising adoption The release adds the Clearstar Flare XRP Yield Vault alongside the existing Monarq XRP Yield Vault, giving users access to two FXRP yield strategies. Monarq, majority-owned by FalconX, uses a combination of derivatives and DeFi strategies, including options and basis trading. Clearstar's vault takes a fully on-chain approach, deploying FXRP across lending and liquidity protocols such as Avant and Euler, and has previously managed more than 33 million FXRP in deposits.
Flare also expanded wallet support to Ledger, Xaman, Joey Wallet, and WalletConnect-compatible wallets, including Bifrost, joining the existing D'CENT integration. Joey Wallet has integrated the Smart Accounts interface directly into its application, allowing users to complete the process without leaving the wallet.
Since February 2026, the amount of FXRP deployed across DeFi applications has increased by nearly 75%, rising from 82 million to 144 million FXRP. Flare also reports that more than 40 million XRP is currently earning yield through Smart Accounts, while nearly 24,000 Smart Accounts have been created to date.
Sources:
Flare Cuts XRP-to-DeFi Onboarding to a Single Signature With Smart Accounts v1.3 - DailyCoin
Flare Simplifies XRP DeFi Access With One-Signature Smart Accounts Update - U.Today
Flare Smart Accounts - Flare Network (Official)
Flare Networks CEO Hugo Philion announced an expansion plan to introduce the FAssets protocol to Bitcoin, leveraging the wrapped FBTC token. This initiative seeks to transform Flare into a programmable layer for historically isolated digital assets, as the broader crypto industry faces persistent stagnation.
Flare’s roadmap and expansion to BitcoinOn Sunday, Flare unveiled a detailed six-month roadmap in collaboration with the XRP Ledger. Currently, its FAssets system enables users to convert XRP into FXRP tokens at a 1:1 ratio, providing access to staking, lending, and liquidity pools. The number of FXRP tokens issued has exceeded 150 million, reflecting steady user participation.
Over the next six months, Flare aims to attract up to 5 billion XRP into its ecosystem, a figure equivalent to approximately 5% of the total XRP supply. To build momentum, Philion revealed plans to bring the FAssets model to Bitcoin, which would allow Bitcoin holders to access decentralized finance services through the FBTC token.
Flare Networks is a Layer 1 blockchain designed to incorporate data from other chains and external information sources, offering new smart contract possibilities for assets not natively programmable.
Philion described the current crypto environment as challenging, remarking, “the market sucks, but not forever,” while emphasizing Flare’s strategic move to unlock new capital for on-chain use.
Focus on institutional adoption and confidential computingA key innovation announced by Philion is the integration of Flare Confidential Compute (FCC), which relies on trusted execution environments (TEEs). This privacy-focused technology aims to address one of decentralized finance’s major hurdles: the inability to keep sensitive transaction data private. Many institutional investors hesitate to enter DeFi due to its inherent transparency, which can reveal commercially valuable activity to competitors.
FCC provides a method for institutional traders and funds to perform large transactions, take out loans, and interact with DeFi protocols while keeping commercial details confidential. Philion believes this will be the primary catalyst to attract significant capital as Flare brings FBTC to market.
Mini dictionary: Trusted Execution Environment (TEE), a secure area within a processor that guarantees confidentiality and integrity for code execution, shielding data from external interference.
Capital flow and long-term targetsPhilion cautioned that the next six months will focus entirely on deploying the necessary smart contract code. Furthermore, he noted that institutional players will likely wait for third-party audits of cross-chain bridges, while lending protocols will require significant inflows of stablecoins such as USDT and USDC to support lending activity.
Despite current market headwinds, Flare’s total value locked (TVL) has remained above $200 million, driven by increasing cross-chain activity and the protocol’s evolving value accrual mechanisms.
MetricCurrent StatusSix-Month TargetFXRP issued150 millionUp to 5 billion XRP (5% of supply)Network TVL$200 millionNot specifiedExpansion assetXRP (FXRP)Bitcoin (FBTC)Network revenue now accrues to FIRE, a new mechanism that automatically buys back and burns native FLR tokens, aiming to boost the long-term scarcity and economic value of the ecosystem.
Philion does not anticipate an immediate price rally but views the deployment as vital groundwork for future institutional capital inflows and sustainable growth.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Flare Networks is preparing for its biggest XRPFi expansion, with the first upgrades expected within weeks. CEO Hugo Philion says the next six months could change how XRP is used in DeFi, potentially bringing up to 5 billion XRP into the ecosystem.
The move comes as the XRP price has been struggling to gain strong price momentum after dropping 72% from its peak.
Flare Plans Major XRPFi ExpansionFlare CEO Hugo Philion announced that the network is starting a six-month integration phase focused on bringing more XRP into programmable finance. He said,
“Starting in the next couple of weeks, the next 6 months are going to be transformative for XRPFi through Flare.
The plan targets a key weakness of the XRP Ledger (XRPL). While the XRP Ledger is already widely used for payments, it was not built for native smart contracts.
Flare aims to add that missing DeFi layer without changing the core XRP Ledger itself.
Starting in the next couple of weeks the next 6 months are going to be transformative for XRPFi through Flare.
— Hugo Philion (@HugoPhilion) July 26, 2026 Flare’s FAssets system is central to this plan. It allows XRP holders to mint FXRP at a 1:1 ratio and use it across DeFi applications such as lending, staking, liquidity pools, and yield products.
5 Billion XRP Could Enter DeFiThe biggest target is the amount of XRP Flare wants to bring into the ecosystem. Philion expects the protocol to eventually attract up to 5 billion XRP, equal to roughly 5% of XRP’s total supply.
If reached, such a large amount moving into DeFi could reduce the amount of XRP sitting on exchanges and give the token more use beyond payments.
Flare’s first phase has already shown strong demand. The company said XRPFi had about $200 million in XRP TVL, more than 3.4 million FXRP DeFi transactions and around 16,500 users.
The Flare dashboard also shows 143.85 million FXRP locked in DeFi, representing about 95.56% of its tracked FXRP supply.
Flare Targets Easier and Private DeFiThe next phase is not only about bringing more XRP into DeFi. Flare is also working on making the process easier for users and institutions.
Through Flare Smart Accounts, XRP holders can access DeFi products from wallets such as Xaman without manually handling cross-chain steps.
Flare is also adding Confidential Compute, which could allow institutions to make large trades or take loans while keeping sensitive details private but still verifiable on-chain.
That makes the 5 billion XRP goal more than a simple supply-locking target. Flare is trying to turn XRP from a payment focused asset into a usable part of the wider DeFi market.
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Flare Networks co-founder and CEO Hugo Philion has announced the start of a six-month phase of large-scale integration that is expected to radically transform the XRP-based decentralized finance ecosystem, known as XRPFi.
The first technological updates will begin rolling out within the next two weeks, turning Flare into a fully programmable layer for the historically isolated XRP Ledger (XRPL).
Because XRPL was originally designed exclusively for fast payments and does not support smart contracts, billions of dollars worth of XRP have remained in wallets for years without any practical utility.
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Flare is attempting to solve this problem through its FAssets system. Users can convert their coins into the wrapped FXRP token at a 1:1 ratio via hot wallets, gaining access to staking, liquidity pools, and on-chain lending.
How Flare plans to attract 5 billion XRP over the next six monthsInvestors have embraced the initiative, and FXRP issuance has already exceeded 150 million tokens. In the long term, Philion expects the protocol to attract up to 5 billion XRP, representing approximately 5% of the coin's total supply and potentially creating a real shortage of the asset on exchanges.
At the same time, the team is addressing the main problem of traditional DeFi: complete transparency, which discourages large capital holders.
Starting in the next couple of weeks the next 6 months are going to be transformative for XRPFi through Flare.
— Hugo Philion (@HugoPhilion) July 26, 2026 The upcoming Confidential Compute technology, based on trusted execution environments, or TEEs, will allow institutions to execute large trades and take out loans while keeping commercially sensitive information hidden from competitors, with transactions remaining fully and mathematically verifiable on the main network.
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However, whether the XRP price can justify retail investors' expectations remains an open question. Contrary to hopes of an immediate price surge, the current news backdrop requires realism.
The six-month period outlined by Philion is a window for deploying the code, while institutional players will require additional months to conduct security audits of the new bridges.
In addition, the ecosystem critically needs a large inflow of liquidity in stablecoins such as USDT and USDC before lending protocols can become fully operational, something Flare's management has directly acknowledged during private sessions. Until these infrastructure challenges are resolved, XRP's market price will continue to follow broader macroeconomic trends and Bitcoin's movements, temporarily ignoring local successes achieved by developers.
Flare Networks, led by co-founder and CEO Hugo Philion, has announced the start of a comprehensive six-month integration phase aimed at reshaping the decentralized finance landscape for XRP through its initiative known as XRPFi.
Major updates to bring programmability to XRP LedgerThe first technological enhancements are set to begin within the next two weeks, aiming to turn Flare into a fully programmable layer for the XRP Ledger (XRPL). The XRPL has traditionally been used for fast and inexpensive payments but was not constructed to support smart contracts, limiting the potential uses for its native cryptocurrency, XRP.
Billions of dollars in XRP have remained largely inactive in wallets due to the lack of smart contract functionality. Flare seeks to address this with its FAssets system, allowing users to convert their XRP into wrapped FXRP tokens at a one-to-one ratio via hot wallets. Holders of FXRP can access staking, liquidity pools, and on-chain lending features previously unavailable on the XRPL.
Flare’s approach aims to provide true programmability for the XRP Ledger, unlocking new utility for XRP holders by enabling participation in decentralized finance protocols such as staking, liquidity provision, and borrowing.
Mini dictionary: FAssets, a protocol on Flare that enables native tokens from non-smart contract blockchains such as XRP to be represented and utilized in smart contract-enabled environments via wrapping mechanisms.
FXRP adoption and institutional confidenceInvestor response to the initiative has been positive so far. FXRP issuance has surpassed 150 million tokens. Philion anticipates that, over the long term, the protocol could attract as much as 5 billion XRP — approximately 5% of the total XRP supply — into the Flare ecosystem, which could impact the available liquidity of XRP on exchanges.
MetricCurrent FigureLong-term TargetFXRP issued150 million5 billionXRP share of total supply~0.15%5%Efforts are also underway to address the transparency challenges of traditional DeFi. According to Flare’s roadmap, the introduction of Confidential Compute technology, powered by trusted execution environments (TEEs), will enable institutions to complete large-scale trades and secure loans while keeping sensitive details confidential. Nevertheless, all transactions will remain mathematically verifiable on-chain, maintaining the integrity of decentralized networks.
Mini dictionary: Trusted execution environments (TEEs) are secure areas within a processor that ensure sensitive code and data are protected, allowing confidential data processing and boosting privacy in decentralized applications.
Infrastructure hurdles and market outlookDespite the promise of these developments, the immediate impact on XRP’s price remains uncertain. The six-month timeframe cited by Philion covers the rollout of new code to support advanced features, but institutional adoption is expected to proceed more slowly due to the rigorous security audits required for new system bridges.
While expectations for a rapid price increase are high, developers caution that infrastructure and liquidity requirements must be met before the broader ecosystem can benefit from these advances.
Flare’s management has also emphasized the urgent need for significant inflows of stablecoins such as USDT and USDC to ensure full operation of new lending protocols. Until these infrastructure requirements and liquidity needs are addressed, XRP’s price is likely to continue tracking macroeconomic trends and Bitcoin’s market movements, with local progress in Flare’s ecosystem having a limited short-term effect.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Kweather, one of South Korea’s largest weather big data platform companies, is partnering with blockchain network Flare to bring meteorological data on-chain and test new weather finance applications under a newly signed letter of intent, the companies said Tuesday.
As part of the initiative, Kweather’s meteorological datasets, including temperature, rainfall and other climate variables, will be delivered through Flare’s Time Series Oracle.
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The layer 1 blockchain project said its infrastructure will verify and secure the data, making it immutable and suitable for financial products and blockchain-based services that depend on trusted real-world information.
The verified data will underpin a range of potential weather finance products, including parametric climate insurance that triggers payouts automatically when specific environmental thresholds are reached, eliminating the need for conventional claims processing.
“Kweather is the perfect partner that aligns with Flare’s data-centric blockchain ecosystem. We will rapidly advance our technical implementation to demonstrate the viability of the weather finance market,” Flare’s co-founder Hugo Philion commented on the partnership.
The companies also plan to evaluate weather derivatives as tools for managing climate exposure across sectors such as agriculture, energy and transportation.
“By merging meteorological data with blockchain infrastructure, we are transforming weather metrics into highly trustworthy onchain data,” Dong-sik Kim, CEO of Kweather, stated. “By proactively introducing financial products that manage climate risks, we aim to expand the meteorological industry market and set a new global standard.”
In addition, Kweather and Flare intend to develop a decentralized physical infrastructure network by integrating weather-monitoring equipment with blockchain infrastructure.
Revenue generated from the network could be tokenized as real-world assets, with future plans to connect the platform to the XRP ecosystem through Flare’s blockchain technology.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
Crypto market analyst and on-chain data enthusiast. Breaking down the trends, narratives, and market cycles of Bitcoin, alts, and macroeconomics.
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February 23, 2024
Uniswap, Flare and Siacoin cryptos rally with double-digit gains, staking their claim as potentially the best cryptos to buy today. Image by cryptonews.com.As the pump in AI stocks like Nvidia on Wall Street eases, major cryptocurrencies are mostly trading in the red on Friday, encouraging risk-tolerant investors to scour the altcoin market for lesser well-known coins that could be the best crypto to buy today.
Bitcoin (BTC) and Ether (ETH) were both last down around 1% in the past 24 hours, as per CoinMarketCap.
That said, both remain close to recent highs near $53,000 and above $3,000 respectively and remain in recent ranges.
Traders continue to monitor themes such as Fed rate cuts, the upcoming halving, and an upcoming Ethereum blockchain upgrade.
As the 2024 rally in mega cap cryptos takes a breather, traders are turning their attention to smaller altcoins.
Here are some altcoins with strong bullish momentum that could be the best crypto to buy today.
Best Crypto to Buy TodayUniswap (UNI) Uniswap (UNI) saw a sudden 45% pump on Friday as the protocol’s DAO introduced a proposal to reward token holders.
Uniswap proposal to create a fee mechanism that rewards UNI token holders that have delegated and staked their tokens goes live.$UNI up 45% since this was posted. Might be the catalyst that lead DeFi applications to be re-rated across the board.https://t.co/PlRwafMDjk
— Arthur (@Arthur_0x) February 23, 2024
If passed, Uniswap will start distributing protocol fees to UNI holders who stake and delegate their tokens.
The proposal’s aim is to “strengthen and invigorate” Uniswap’s governance.
Assuming the proposal passes, UNI could soon become one of DeFi’s best passive income tokens.
While investors may have missed the latest pump, UNI could easily still be the best crypto to buy today.
Flare (FLR) Data-focused layer-1 blockchain Flare (FLR) was last still up over 15% on Wednesday, making it one of the best crypto to buy now.
FLR was last just under $0.040 and eyeing a test key resistance in the $0.044-48 area.
The prospect of potential quick gains makes FLR one of the best crypto to buy today.
Siacoin (SC) Decentralized cloud storage network Sia’s native token Siacoin pumped 16% in the last 24 hours, as per CoinMarketCap.
Indeed, SC just hit its highest level since late 2021, above $0.020.
Up over 800% from its 2023 lows, SC is eyeing a more than 200% push toward its 2021 record highs above $0.06 per coin.
With a market cap of only around $1.1 billion, 3x gains are certainly within the realm of possibility.
Hence, Siacoin could easily rank among the best crypto to buy today.
Crypto Alternatives to Consider All of the above coins offer potential investors a chance to make 10x gains.
But, for those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of startup crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a unique crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023:
See the 15 Cryptocurrencies
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
