Another feather in the Ripple hat. XRP has just entered the DeFi space with a bang. In recent XRP news, FXRP officially launched on Flare Networks, with the entire first tranche of 5 million tokens minting out within just four hours.
The launch is the beginning of “XRPFi” as analyst King Solomon describes the DeFi awakening for XRP.
The development comes as XRP maintained a $176 billion market cap without any meaningful DeFi ecosystem.
The Flare Networks F-assets system went live with version 1.2 and allowed the creation of FXRP as a one-to-one representation of XRP.
The launch cap of 5 million FXRP reached maximum capacity within four hours. King Solomon mentioned this adoption as “anticipation” rather than mere hype.
FXRP operates through Flare’s trustless bridge and collateral system designed for high-value flows.
The system underwent multiple independent audits, community reviews, and bug bounties through Immunify.
Early adopters can access liquidity pools and yield farming opportunities immediately upon launch.
Features offered include liquid staked XRP (STXRP) powered by Firelight, XRP-backed stablecoins, and curated yield vaults.
These additions will expand the ripple XRPFi ecosystem beyond basic token wrapping into comprehensive financial services.
Non-smart contract assets like XRP gain full DeFi composability through the F-assets system. FXRP can move across Flare DeFi protocols without special workarounds.
Market Cap Comparison Shows XRP Untapped DeFi Potential
As per latest XRP news, current $176 billion market capitalization was achieved with essentially zero DeFi total value locked, contrasting with other major cryptocurrencies.
For context, Ethereum reached over a $500 billion market cap supported by $312 billion in DeFi TVL at peak, with 9.1 million daily active addresses in August 2025.
The combination of DeFi, NFTs, and composability drove Ethereum to the second position among cryptocurrencies.
Solomon mentioned that Solana’s approximately $116 billion market cap benefited from over $12 billion in DeFi TVL driven by ultra-low fees and high throughput.
Both Ethereum and Solana earned the DeFi utility to justify their valuations through billions locked and transacted.
However, XRP achieved top-five status through payments narratives, speculation, and liquidity without DeFi infrastructure.
Ripple XRP Ledger operates as the oldest decentralized exchange in crypto, yet complex DeFi applications remained limited until recent developments.
Solomon mentioned that this week’s announcements from both Axelar/Midas with MXRP and Flare’s FXRP launch change the sector.
The valuation comparison suggests major upside potential as DeFi utility layers onto XRP’s existing foundation.
Solomon noted the upside appears “not anywhere close to being priced in” given XRP’s maintained top-five position through years of regulatory challenges without meaningful DeFi adoption.
The analyst also added that when DeFi utility, including collateral usage, stablecoins, yield strategies, and staking, gets added to an asset maintaining top-five status, the potential multiplier effects become apparent.
XRP News: Institutional Adoption Ramps Up Through Tokenization
In other XRP news, parallel to retail XRP DeFi developments, institutional adoption is advancing through tokenized asset initiatives.
Archax announced a UK-first collaboration with Lloyds Bank and Aberdeen Investments using tokenized money market funds as collateral for foreign exchange trades.
The transaction used Hedera Hashgraph for secure token transfer and custody. The collaboration shows the practical applications of tokenized assets in regulated financial markets under existing legal frameworks.
Tokenized money market funds and UK gilts served as collateral digital assets can function within traditional banking operations.
Archax, regulated by the London Stock Exchange, issued and securely held permissioned digital tokens on Hedera’s public blockchain.
This was the first time digital assets functioned as collateral in UK financial markets. Multiple initiatives now provide both retail and institutional pathways for XRP utility expansion.
Source: https://www.thecoinrepublic.com/2025/09/26/xrp-news-fxrp-launch-on-flare-sparks-xrp-defi-era-as-5m-tokens-mint-out/
