Flare Networks Enhances XRP Utility with FXRP Yield Generation Vaults

Flare Networks is transforming the way XRP holders can utilize their assets by introducing FXRP, a 1:1 representation of XRP on the Flare network, which enables yield generation through decentralized finance (DeFi) vaults. This innovation allows users to mint FXRP easily from their existing XRPL wallets, requiring only a single signature and eliminating the need for complex bridging protocols.

Since the launch of the Flare Smart Accounts (FSA) v1.3 update on July 28, 2026, the amount of FXRP deployed in DeFi has surged from 82 million to 144 million, marking a 75% increase in just five months. Additionally, over 40 million XRP is currently earning yield through integrated wallets like Xaman and D’CENT.

The vault ecosystem includes offerings from Monarq, which targets a 3-4% APY through diversified strategies, and Clearstar, which has deployed over 33 million FXRP across various lending and liquidity protocols. This development builds on the earlier earnXRP vault launched in December 2025, which laid the groundwork for XRP yield generation on Flare.

FXRP is part of Flare’s broader FAssets system, allowing for the representation of non-smart-contract tokens on its EVM-compatible network. Each FXRP token is backed 1:1 by XRP collateral secured on the XRP Ledger, ensuring users retain custody of their underlying assets.