XRP has long been one of crypto’s most widely held assets, but it’s also been one of the most frustrating to put to work. While Ethereum and Solana holders have had a buffet of DeFi options for years, XRP largely sat in wallets collecting dust. Flare Networks is changing that equation, and the numbers suggest holders are paying attention.
The Flare Smart Accounts (FSA) v1.3 update, launched on July 28, 2026, lets XRP holders mint FXRP, a 1:1 representation of their XRP on the Flare network, and deposit it directly into yield-generating vaults. The kicker: it requires just a single signature from an existing XRPL wallet. No complex bridging protocols, no setting up a separate EVM wallet.
The numbers tell the story
FXRP deployed in DeFi has grown from 82 million to 144 million since February 2026. That’s roughly 75% growth in about five months.
Beyond the FXRP figures, more than 40 million XRP is currently earning yield through integrated wallets like Xaman and D’CENT.
The vault ecosystem is where things get interesting. Monarq operates a multi-strategy XRP Yield Vault targeting 3-4% APY through diversified strategies.
Clearstar’s fully on-chain DeFi vault has deployed over 33 million FXRP across lending and liquidity protocols.
How the plumbing actually works
FXRP is part of Flare’s broader FAssets system, which creates representations of non-smart-contract tokens on Flare’s EVM-compatible network.
Each FXRP token remains backed 1:1 by XRP collateral secured on the XRP Ledger itself. Users don’t surrender custody of their underlying assets to a centralized entity. The collateral sits on XRPL, the representation lives on Flare, and smart contracts handle the mechanics in between.
This latest update builds on groundwork laid by the earnXRP vault, which launched in December 2025. That initial product established the basic infrastructure for XRP yield generation on Flare, but the newer vault options from Monarq and Clearstar offer variable returns and more sophisticated strategies compared to the earlier fixed-rate approach.