XRP holders now have a new way to put their coins to work: Flare announced Thursday that holders can use FXRP—the ERC-20 representation of XRP on the Flare blockchain—as collateral to trade options and perpetual futures on decentralized exchange Derive. How it works - Users mint FXRP through Flare’s FAssets bridge, which converts assets such as XRP (as well as Bitcoin and Dogecoin) into ERC-20 tokens on the Flare network. - They then deposit FXRP into a Derive Portfolio Margin V2 account and trade derivatives directly from their own wallets, keeping positions non‑custodial. What traders can do - Options give traders the right (but not the obligation) to buy or sell an asset at a predetermined price, useful for hedging or generating income by selling premium. - Perpetual futures let traders take directional bets on price movements without an expiry date. - Together, these products let XRP holders hedge downside risk, earn premiums, or speculate on price moves while keeping exposure posted as collateral. Settlement and risk - Derive’s XRP options settle in USDC rather than XRP: if an option expires in the money, the payoff is paid in the dollar‑pegged stablecoin while the FXRP remains posted as collateral. - Options sellers must maintain sufficient USDC to cover potential settlements and meet margin requirements, or face liquidation. Why it matters - “Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure,” Derive founder and CEO Nick Forster said. “FXRP gives one of crypto’s largest holder bases a credible path onchain, and adding Derive’s options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.” - The integration expands FXRP’s DeFi utility. Earlier this month, FXRP was approved as collateral in Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho, enabling XRP holders to bridge FXRP to Ethereum and borrow Ripple’s RLUSD stablecoin without selling their XRP. This move adds a significant derivatives layer to the growing on‑chain utility for XRP via FXRP, opening more sophisticated trading and risk-management options to one of crypto’s largest holder bases.
Flare Unlocks On-Chain Options and Perpetual Futures for XRP Holders via Derive
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Summary
Flare has launched on-chain trading signals for XRP holders through Derive, allowing FXRP to be used as collateral for options and perpetual futures. Users can mint FXRP via the FAssets bridge and deposit it into a Derive Portfolio Margin V2 account for non-custodial trading. Options offer hedging or income, while perpetual futures let traders take directional positions without expiry. XRP options settle in USDC, with sellers required to maintain stablecoin for margin. Derive CEO Nick Forster said the move gives XRP holders advanced on-chain trading tools. FXRP was recently accepted as collateral on Morpho’s Sentora RLUSD Main vault, boosting its DeFi use.
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