Ripple Advances into Decentralized Finance with Flare's FAssets Enhancement

Ripple has made a significant move into the decentralized finance (DeFi) sector through the latest update of Flare’s FAssets system. This development enables users to engage in DeFi activities using Ripple’s native token, XRP, without relying on traditional blockchain bridges.

On May 14, 2025, Flare introduced its FAssets v1.1 on the Songbird network, facilitating the integration of non-smart contract assets like XRP into the DeFi ecosystem. This upgrade allows users to perform complex DeFi operations with assets such as Bitcoin and Dogecoin, with XRP being the first asset available on the platform.

A central feature of this upgrade is the introduction of Core Vaults, mechanisms that connect assets like Bitcoin or XRP to smart contract platforms without requiring users to relinquish custody of their assets. Once collateral is secured in these non-custodial vaults, the system automatically issues equivalent tokens, such as FXRP.

What Sets Flare’s FXRP Apart?

Flare’s approach to FXRP distinguishes itself through its custody and security model. Traditional bridged assets often involve transferring asset custody to third parties, introducing security risks. Flare’s non-custodial method mitigates these risks by allowing users to retain control over their assets, thereby reducing vulnerabilities associated with cross-chain bridges.

With this enhancement, users can now utilize XRP in various DeFi operations, including lending, borrowing, yield farming, and staking. This development marks a significant step in expanding XRP’s utility within the DeFi landscape.