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XRP evolves from payment token to DeFi collateral asset unlocking yield opportunities via Flare.

Protocol Fundamentals
31 May 2026
Coinpaper
View Source
Bullish
pluang ai news

Flare Network co-founder Hugo Philion highlights XRP's expanding role beyond payments, emphasizing its potential as a collateral asset in decentralized finance (DeFi). Through Flare, XRP can be wrapped into FXRP, enabling its use in smart contracts and lending protocols where holders can borrow stablecoins without selling XRP. This allows investors to generate yield by reinvesting borrowed assets into DeFi strategies like liquidity pools and lending markets, transforming XRP into a versatile financial instrument. This shift aligns with growing interest in structured crypto yield frameworks and expanding DeFi products within the XRP ecosystem.

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