A new report by DefiLlama reveals that nearly 90% of the circulating supply of FXRP, Flare Network's XRP-focused token, is currently deployed across decentralised finance (DeFi) protocols.
Out of 145 million circulating FXRP tokens, approximately 129 million are locked in DeFi applications, highlighting a major shift toward liquidity generation and yield for XRP holders.
FXRP Lending Markets and Cross-Chain Expansion
FXRP was launched in September 2025 through Flare's FAssets system to bring non-smart contract assets into DeFi. Lending protocols now form the core of FXRP utilization across platforms like Morpho and Kinetic on Flare, Morpho on Ethereum, and Euler on Monad. By depositing FXRP as collateral, users borrow against their XRP exposure without liquidating their position.
A notable example cited by DefiLlama is Sentora's RLUSD vault on Morpho, where 10.6 million FXRP tokens backed $7.9 million of RLUSD supplied in late September. Furthermore, cross-chain adoption has expanded rapidly, with 20 million FXRP deployed outside the Flare network—a fivefold increase since July. Issued as a LayerZero Omnichain Fungible Token, FXRP now spans seven blockchain networks and established its first XRP spot pair on HyperCore in January.
Key Takeaways
- DefiLlama reports 129 million out of 145 million FXRP tokens (nearly 90%) are actively deployed in DeFi.
- Sentora's RLUSD vault on Morpho holds 10.6 million FXRP backing $7.9 million in RLUSD.
- Flare Data Connector fees now make up 45% of overall protocol revenue following the implementation of FIP.16.
- Directly staked FLR tokens grew from 32% to 46% between April and August after a July hard fork.
Data Revenue and Future Network Milestones
Beyond asset wrapping, Flare's core infrastructure is driving financial growth. Following the FIP.16 governance implementation, fees generated by the Flare Data Connector have become the network's fastest-growing revenue stream, accounting for 45% of total protocol revenue. On-chain governance changes also impacted token dynamics: direct staking of FLR grew from 32% to 46% between April and August following a July hard fork.
Looking forward, Flare is developing Flare Confidential Compute (FCC) to allow smart contracts to verify institutional data confidentially. The system's first application is running on the Songbird canary network, delivering proof of reserves for Hex Trust's USDX stablecoin. Upcoming network milestones include the deployment of FBTC for Bitcoin integration, full mainnet launch of FCC, and continued expansion across EVM-compatible networks.
Why It Matters
The rapid deployment of FXRP shows strong institutional and retail demand for bringing legacy digital assets into productive yield environments. By combining cross-chain interoperability with native oracle data verification, Flare is carving out a niche as an infrastructure provider for non-smart contract assets. If upcoming initiatives like FBTC and Confidential Compute succeed, Flare could become a primary bridge connecting traditional private data and institutional liquidity with decentralised finance.
