Flare Network has launched the first modular lending markets for XRP, a significant development in its XRPFi initiative aimed at transforming XRP from a dormant asset into a productive source of yield and credit. The integration is facilitated through Morpho, a modular lending protocol with over $10 billion in total value locked (TVL) across EVM-compatible chains, with the Mystic interface serving as the primary front-end for users on Flare.
The deployment introduces permissionless lending for FXRP—Flare's wrapped, ERC-20 representation of XRP. This enables FXRP holders to deposit assets into curated, yield-bearing vaults, use FXRP as collateral to borrow stablecoins or other supported assets, and integrate lending positions into structured strategies. The modular design of Morpho isolates risk at the individual market level, with each market supporting a single collateral and loan asset. Parameters like loan-to-value ratios are set at creation, and markets can be launched permissionlessly.
Independent curators, including Clearstar, are managing the initial vaults backed by assets such as FXRP, FLR (Flare's native token), and USDT0. The Flare ecosystem currently boasts a TVL exceeding $130 million, driven significantly by XRP and FXRP assets. Flare CEO Hugo Philion has stated a goal to incorporate 5 billion XRP into the Flare network by 2026, focusing on enhancing the asset's programmability and mobility within DeFi.
This launch marks a key milestone in addressing the historically limited access XRP holders have had to advanced DeFi strategies. It extends Flare's existing XRPFi infrastructure, which includes FXRP, staking via Firelight, spot trading through Hyperliquid, and yield tokenization with Spectra. The development has already seen institutional backing, with firms like Everything Blockchain Inc. and VivoPower International PLC committing significant assets to FXRP strategies.
