XRP holders can now deploy idle tokens into DeFi yield strategies through Flare Network, unlocking access to a $2.25 billion real-world asset market on the XRP Ledger.
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Flare unlocks XRP DeFi as XRPL RWA market cap hits $2.25B
XRP holders can now deploy idle tokens into DeFi yield strategies through Flare Network, unlocking access to a $2.25 billion real-world asset market on the XRP Ledger.
Flare Network co-founder Hugo Philion said XRP holders can access DeFi lending and vault strategies, turning the token into collateral for yield generation rather than a pure payments asset. "By taking your XRP and turning it into a collateral asset, you can then get yield through borrowing and then relending out those dollars," Philion said during an episode of "XRP in a Minute" hosted by Ripple.
The XRP Ledger's real-world asset market cap reached $2.25 billion in Q1 2026, a 124.1% quarterly increase, making it the seventh-largest RWA network at the time, according to a Messari report. It has since climbed to fourth place. Flare and D'CENT Wallet also launched a direct hardware-wallet route into FXRP yield vaults, allowing more than 330,000 hardware users and 720,000 app users across the US, Korea, the UK, Canada and Japan to deposit XRP without managing a new wallet or FLR gas tokens, per a May 19 announcement.
The push to turn XRP into a programmable collateral asset opens a yield market for the roughly $1.12 billion in XRP held across D'CENT wallets alone. The Monarq vault, operated by a FalconX-majority-owned asset manager, is now accessible directly through the wallet interface, with a $55,000 reward pool running through June 8. XRP traded between $1.30 and $1.40 on May 30, according to CoinDesk data.
Flare Smart Accounts Bridge XRPL to EVM DeFi
The integration uses Flare Smart Accounts, which allow XRP Ledger-native users to reach EVM-based DeFi without creating a new wallet or managing FLR as a gas token. Users sign two transactions on XRPL — one to reserve collateral and pay operator fees, another to send XRP to the Core Vault — after which FXRP is minted on Flare and deposited into the chosen vault automatically. Each XRPL address gets a corresponding smart contract proxy on Flare, with control anchored to the signature from the user's D'CENT device. Gas handling is embedded in the flow, removing one of the most common barriers for holders who have never moved beyond simple custody.
XRPL RWA Ecosystem Expands Beyond Payments
The XRP Ledger now tracks 18 distributed RWAs and 312 represented RWAs, excluding stablecoins, according to RWA.xyz. In May 2026, the network hosted its first tokenized US Treasury settlement across borders and banks in near real time outside traditional banking windows, connecting XRPL to interbank settlement rails. The broader tokenized RWA sector has grown to more than $34 billion in onchain value, up from about $5.8 billion at the start of 2025, per RWA.xyz data. Boston Consulting Group said in a report earlier this month that tokenized funds, collateral and fixed-income products are among the blockchain-based financial products most likely to see broader institutional adoption over the coming decade.
The XRP Ledger also rolled out the fixCleanup3_1_3 upgrade on May 28, automatically removing expired NFT offers and fixing bugs in permissioned domain settings, vault withdrawal limits and loan accounting — infrastructure improvements that support the growing DeFi ecosystem on the network.
This article is for informational purposes only and does not constitute investment advice.
[1] Flare Co-Founder Says XRP Holders Can Access DeFi and Smart Contracts[2] XRP Ledger to delete NFT junk and patch key bugs in a new upgrade[3] Grvt adds 3 tokenized yield funds tied to institutional-grade RWAs[4] XRP Beyond Payments: Flare Exec Explains New Opportunities[5] Flare and D’CENT Bring One-Flow XRP Yield Access to Hardware Wallet Users - Cryptonews.net
