What is FXRP, and how much of it is actually being used?

The full answer

What is FXRP?

FXRP is a token on the Flare network that represents XRP one for one. In a post dated September 24, 2026, Flare says each FXRP is minted only after Flare’s data protocols verify the matching payment on the XRP Ledger, and that the system is backed by an overcollateralized set of independent agents [1]. FAssets, the Flare system that issues it, went live on Flare mainnet with FXRP on September 24, 2025. Flare reports that the week-one mint cap of 5 million FXRP filled in about four hours [1]. Flare describes the division of labour this way: the XRP Ledger settles XRP, and Flare gives it a programmable financial layer [1].

How does the Flare bridge that creates FXRP work, and what protects FXRP holders if an agent or the bridge fails?

Minting starts with an XRP payment on the XRP Ledger. According to Flare, its Flare Data Connector (FDC) proves that payment, and its price oracle (FTSO) prices the collateral [1]. Flare says the XRP backing FXRP stays on the XRP Ledger in a Core Vault that acts only on instructions from Flare’s smart contracts, with excess XRP time-locked in native XRPL escrows that release one batch per day [1].

Flare reports that FAssets version 1.3 reduced minting to a single XRPL payment with a destination tag, with no agent selection and no collateral reservation, and that Hex Trust brought the same flow inside regulated custody [1]. The routes for custodians and for individual holders are covered on the page asking whether XRP held with an institutional custodian can be put to work in DeFi.

On protection, Flare states that minting and redemption are enforced by collateral and proofs. It also states that FAssets shipped with four independent audits from firms including Zellic and Coinspect, an Immunefi bug bounty, community review through Code4rena and 24/7 monitoring from Hypernative [1]. Flare’s own September 2026 post says, “No layer here is finished.” [1]

What is FXRP used for, and where?

Flare’s September 24, 2026 post lists these uses [1]. FXRP is lent and borrowed, posted as collateral, and used to back a stablecoin through Enosys CDP, which takes FXRP as collateral to mint an XRP-backed stablecoin. Kinetic runs FXRP lending markets, including an isolated pool. Derive accepts FXRP as collateral for options and perpetuals. SparkDEX, BlazeSwap and Enosys provide trading liquidity. Firelight, which Flare calls a staking layer for XRP, and Spectra, for fixed rates and yield trading, add further uses.

Morpho lending went live on Flare through the Mystic front end, Flare announced on February 3, 2026. In Morpho’s design each market has one collateral and one loan asset, and risk is isolated at the market level [4]. Holders can deposit FXRP into curated vaults or use it as collateral to borrow stablecoins or other assets, according to Flare [4].

In August 2026, FXRP went live as collateral in Sentora’s RLUSD vault on Morpho, on Ethereum mainnet. Flare reported that the market opened at a $4 million cap and, as of September 24, 2026, stood at $7.85 million, with $7.9 million of RLUSD supplied against 10.6 million FXRP of collateral [1]. That market is examined on the page asking whether you can borrow RLUSD against XRP without selling it.

Vaults are the other main use. Flare describes earnXRP as built on Upshift’s vault infrastructure and curated by Clearstar, and Monarq as offering managed, multi-strategy exposure. Flare says these are actively managed strategies whose returns move week over week [1].

FXRP also leaves Flare. Through LayerZero’s OFT standard it reaches Ethereum, Base, BNB Smart Chain, Monad, Katana, HyperEVM and HyperCore, and Flare reported about 21 million FXRP, 14.4% of the 145.2 million outstanding, on other chains as of September 24, 2026 [1]. How this compares with other routes is covered in whether XRP can be used on other blockchains.

Flare states that “the most useful flows in XRPFi begin on Flare” today, and describes a path that starts and ends in an XRPL wallet as “the block that comes next”, not a live product [1].

How much FXRP exists, and how much is in use?

Flare reported about 145.2 million FXRP minted as of September 24, 2026, with 130 million FXRP in DeFi across about 7.8 million transactions [1]. The 130 million is part of the 145.2 million, not an addition to it. That puts about 89.5% of minted FXRP in DeFi (130 divided by 145.2, both Flare figures). Flare does not define in that post what “in DeFi” includes.

A Flare post dated May 8, 2026 put XRP TVL on Flare at about $200 million inside a $440 million ecosystem, with more than 3.4 million FXRP DeFi transactions across about 16,500 users since launch [3]. The difference between token counts and dollar TVL is taken up in whether DeFi TVL is a good measure of XRP liquidity.

Flare also reported that by July 2026 nearly 24,000 Flare Smart Accounts had been created, with more than 40 million XRP earning through the Xaman and D’CENT wallets alone [1].

How has FXRP minted grown month by month, and is the rate slowing?

Flare has published snapshots, not a monthly series. According to Flare, 90 million or more FXRP had been minted by the end of January 2026, roughly 80% of it in DeFi [1]. On April 8, 2026, Flare reported more than 150 million FXRP in circulation, roughly 85% deployed across DeFi [2]. Flare’s September post says more than 155 million had been minted by late April, and FXRP in DeFi grew from 82 million to 144 million between February and July [1]. On September 24, 2026 the figures were 145.2 million minted and 130 million in DeFi [1].

Growth did more than slow: by Flare’s own figures, minted FXRP was about 10 million below its late-April level on September 24, and FXRP in DeFi was 14 million below July. This follows from the Flare figures above). BigGo Finance, reporting Flare Metrics data after the September 24 anniversary, put supply slightly below the anniversary snapshot at about 145 million, with roughly 85% of the current minting capacity used [7]. With capacity not full, the cap alone does not explain the fall. That follows from BigGo’s 85% figure.

How concentrated is FXRP holding among a few wallets or treasuries?

No holder-by-holder breakdown of FXRP has been published. The largest single pool Flare names is Clearstar’s vault, which held over 32 million FXRP as of September 24, 2026 [1], more than a fifth of the 145.2 million minted (Analysis, from Flare’s figures). The Sentora RLUSD market held 10.6 million FXRP on the same date [1], about 7.3% of the total (my calculation).

Evernorth went a different way, stating in an SEC-filed post its intent to use the upcoming XRP Lending Protocol (XLS-66). Evernorth went a different way: in a 2026 post filed with the SEC, it stated its intent to use the upcoming XRP Lending Protocol (XLS-66) as a core pillar of its digital asset strategy, and set out why it chose a native protocol over bridging [5]. As of September 30, 2026, I could not find any figure for FXRP held by Evernorth or other XRP treasury companies. Whether that native lending exists yet is covered in is native lending live on the XRP Ledger yet.

What is the case against reading these numbers as success?

Every usage figure on this page comes from Flare or from Flare Metrics data as reported by BigGo Finance; no cited figure is independently verified. BigGo Finance’s report takes its 145.2M and 130M anniversary figures from Flare’s one-year update and its current ~145 million supply and 85%-capacity figures from Flare Metrics data [7].

Wrapping adds risk that native XRP does not carry. Evernorth wrote in its SEC-filed post that bridging requires trusting a third-party bridge or a new, unproven smart contract environment [5]. Bitcoin.com News reported that users remain exposed to counterparty, smart-contract, oracle and infrastructure risks across on-chain and off-chain markets [6].

Flare has named its own weak points. Its May 8, 2026 post said UX is still fragmented, vault capacity fills quickly and dilutes returns, and yield has not always been strong enough to compete for attention [3]. Both minted FXRP and FXRP in DeFi were below their spring and summer highs on September 24, 2026, by Flare’s own numbers [1]. The wider case is set out on the risks of earning yield on XRP through AMM pools or wrapped XRP.