On May 14, 2025, XRP took a massive leap into decentralized finance (
DeFi) with Flare’s FAssets upgrade launched on Songbird, its test network. This upgrade introduces FXRP, a tokenized version of XRP, allowing holders to lend, borrow, stake, and farm yields on Flare’s blockchain—unlocking DeFi for
XRP’s $135 billion market cap. Unlike risky blockchain bridges, Flare’s system keeps custody secure, addressing past vulnerabilities that led to $1.5 billion in crypto losses in 2024.
Why is this a big deal? XRP, known for fast, low-cost cross-border payments, lacked smart contract support, limiting its DeFi potential. Flare’s FAssets, as CEO Hugo Philion noted, make XRP “composable” for DeFi, enabling users to earn passive income without third-party intermediaries. Posts on X buzz with excitement, calling it a “new era” for XRPFi. The upgrade could drive demand, especially after XRP’s 8.8% weekly surge to $2.52.
The impact could be game-changing. With 19 million KYC-verified Flare users, XRPFi may attract new investors, potentially pushing prices higher. However, DeFi’s complexity and volatility pose risks—hacks and scams remain a threat. For beginners, this opens exciting opportunities but demands caution and research.
Will XRPFi redefine crypto finance? Share your thoughts below! Follow trafy.io for more crypto updates.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.