XRP holders are increasingly using their assets to access credit and other financial applications. A new DefiLlama Research report on Flare finds approximately 129 million FXRP deployed in DeFi, against a supply of roughly 145 million—a utilization rate of about 89%.
The report, published October 21, uses a late-September supply snapshot. FXRP is the representation of XRP issued through Flare’s FAssets system, which launched for XRP in September 2025. It allows holders to put XRP exposure into lending, staking and trading applications.
A second finding helps explain the significance of that deployment: approximately 95% of the FXRP deployed before Flare’s incentive program ended remained deployed afterward. The total fell from 136 million on July 9 to 129 million by October, suggesting that demand extended beyond the initial rewards.
Borrowing against XRP is the largest use
Lending markets account for approximately 52% of deployed FXRP, according to the report. Those positions span Morpho and Kinetic on Flare, Morpho on Ethereum and Euler on Monad. Much of the FXRP serves as collateral, allowing holders to borrow while retaining exposure to XRP.
In Sentora’s RLUSD vault on Morpho on Ethereum, 10.6 million FXRP stood as collateral against $7.9 million of RLUSD supplied in late September. The supplied amount describes the stablecoin liquidity in that market; it should not be read as an equivalent amount already borrowed.
As Blockster covered when the FXRP/RLUSD market launched, the arrangement gives XRP holders access to dollar liquidity without requiring an outright sale. Borrowers still need to manage interest costs and collateral levels, including the possibility of liquidation if their position becomes undercollateralized.
Post from @FlareNetworksView the original post on X↗
FXRP is finding markets beyond Flare
Approximately 20 million FXRP is now deployed outside Flare in the report’s October snapshot, up fivefold from about 4 million in July. The shift shows holders taking the asset to additional markets where it can be traded or used as collateral.
FXRP uses LayerZero’s Omnichain Fungible Token standard to move across supported networks. Its reach includes Ethereum and Monad, while its arrival on HyperCore in January introduced an XRP spot pair there.
For users, that expands the places where the same underlying XRP exposure can support a financial position. For Flare, it gives FAssets a role beyond supplying assets exclusively to applications on its own network.
Data verification is becoming a revenue source
The report also examines the infrastructure that makes those applications possible. Flare’s Data Connector verifies events outside the network, allowing a smart contract to act on evidence that a transaction occurred elsewhere.
Since the FIP.16 changes took effect, Data Connector attestation fees have become the fastest-growing revenue source for FIRE, Flare’s protocol revenue pool, and now account for 45% of its revenue. That percentage refers to FIRE’s revenue mix, rather than all fees earned by applications across the ecosystem.
The distinction matters for evaluating growth. Deploying FXRP shows demand for financial applications; paying for verification shows demand for the data services supporting them. Both are part of Flare’s strategy, but they measure different activity.
Private institutional data is the next application
Flare Confidential Compute extends that approach to information institutions cannot publish openly. It processes sensitive inputs inside protected computing environments and produces signed results that smart contracts can verify.
Its first institutional application is live on Songbird, Flare’s canary network, supporting proof of reserves for Hex Trust’s USDX stablecoin. As Blockster reported earlier this month, the system checks reserve backing while keeping private financial records confidential.
That gives the technology a role beyond moving tokens between chains. It offers a way to make a financial fact usable onchain while controlling access to the records behind it. DefiLlama describes how that role could develop as more applications arrive:
“becomes closer to an oracle primitive for private data, playing the role for institutional information that FTSO plays for public prices.”
Making the next step easier for XRP holders
The remaining challenge is making these financial services straightforward to use. In Blockster’s TOKEN2049 interview with Flare’s Filip Koprivec, he described plans to let holders access more of the ecosystem from their existing XRP wallet.
Flare Smart Accounts already support earning opportunities through that familiar interface. Bringing collateral and borrowing into the same experience is a next step, distinct from the lending markets that already accept FXRP.
The broader roadmap also includes FBTC, the planned Bitcoin product, and deployment of Confidential Compute on Flare’s main network. Those developments would expand both the assets and the information available to applications built on the network.
Post from @FlareNetworksView the original post on X↗
Blockster’s take
The strongest signal here is what happens after XRP becomes usable in DeFi. A high deployment rate, lending demand and continued use after incentives ended give Flare a concrete foundation to build on. Holders are finding reasons to keep capital in these applications.
The opportunity now is to make that usefulness easier to access and extend it to more assets. If Flare can simplify borrowing from an XRP wallet while bringing Bitcoin and private institutional data into the same infrastructure, its next phase will have several practical uses to build around.
Reporting by Lidia Yadlos
