How Do Flare Network’s FAssets Let XRP and Dogecoin Enter DeFi?

Flare Network's FAssets system lets holders of coins that cannot run smart contracts, such as XRP, Bitcoin, and Dogecoin, mint a matching token on Flare that they can trade, lend, or use as collateral in DeFi apps. The first of these tokens, FXRP, went live for XRP in September 2025, and more than 155 million FXRP had been minted by mid-2026. Wrapped Bitcoin (FBTC) is next on the roadmap, with a Dogecoin version planned as a later step in the same system.

Worth noting, XRP and Dogecoin were built as simple payment networks, not programmable ledgers. Neither the XRP Ledger nor the Dogecoin chain supports smart contracts on its own, so coins sitting on those networks cannot be lent out, used as collateral, or placed in a liquidity pool the way Ether or a stablecoin can. FAssets solves that gap without asking users to hand their coins to a company that issues an IOU in return.

What Is the FAssets System?

FAssets is a trust-minimized bridge built by Flare Labs. Instead of a single custodian holding your coins, a network of independent participants called agents locks collateral on Flare to back every token they mint. This structure is why the project describes FAssets as "overcollateralized": the value backing each wrapped token is worth more than the token itself, which is meant to absorb price swings in the underlying asset.

The system relies on two pieces of Flare's own infrastructure:

• The Flare Data Connector, which verifies that a deposit really happened on the source chain (for example, that XRP was sent to an agent's address on the XRP Ledger)
• The Flare Time Series Oracle, which feeds in price data so collateral ratios can be checked and enforced

How Does Minting FXRP Work?

Minting is the process of creating the wrapped token. Flare simplified this step with FAssets v1.3, which went live on mainnet on May 14, 2026. Under the current version:

1. A user sends an XRP transaction on the XRP Ledger, tagged with a destination tag, memo, or Flare Smart Account reference.
2. An executor relays proof of that payment to Flare.
3. The Flare Data Connector verifies the transaction actually happened on the XRP Ledger.
4. Flare mints an equal amount of FXRP as an ERC-20 token and routes it to the user's mapped address.

This removed the earlier requirement to manually pick a specific agent and mint against that agent's available collateral, which had limited capacity to whichever agents had room at the time. 

Agents still play a central role, but now mainly on the redemption side, and every position they back must stay above a minimum collateral ratio of 1.3 times the value of the FXRP outstanding. That collateral is a mix of assets such as FLR, stablecoins, and ETH. 

If a position's ratio drops too close to that floor, the system can trigger graduated liquidation to protect FXRP holders. Users can redeem FXRP for XRP at any point, which releases the backing agent's locked collateral.

Where Does FXRP Get Used?

FXRP itself does not generate yield on its own. It is a base asset that becomes productive once it is deployed elsewhere. Filip Koprivec, chief product officer at Flare, described it as a token users can put to work in lending markets and liquidity pools to earn a return, rather than something that pays yield by default.

• Decentralized exchanges such as SparkDEX, BlazeSwap, and Enosys, where it can be swapped or supplied as liquidity
• Lending markets such as Morpho, where it can be borrowed against or lent out
• Wallets including Luminite and Oxen Flow, which support minting, swapping, and bridging directly

According to Flare, roughly 89% of circulating FXRP was actively deployed in DeFi protocols as of early 2026, rather than sitting idle in wallets. The network's total value locked has grown alongside that activity, moving from under $10 million before the FAssets Incentive Program to more than $200 million as of late July 2026, per Flare Labs figures.

FXRP's reach also extends beyond Flare itself. In August 2026, Flare enabled FXRP-collateralized borrowing of RLUSD, Ripple's stablecoin, on Ethereum. Users mint FXRP, bridge it to Ethereum, deposit it into an FXRP/RLUSD market, and borrow RLUSD against it without selling their underlying XRP. Flare Labs CEO Hugo Philion framed it as closing a second gap in XRP's utility, after FXRP itself addressed the first by making XRP programmable.

What About Bitcoin and Dogecoin?

Dogecoin was actually the first asset Flare tested for FAssets, going back to an open beta in 2024 and 2025. That early version, FDOGE on FAssets v1, was wound down in May 2025 as Flare moved to its v1.1 protocol, which launched with XRP support only. Flare's public roadmap still lists FBTC and FDOGE as future FAssets, using the same collateralized bridge model as FXRP, but as of August 2026 neither has a confirmed mainnet launch date.

Bitcoin is furthest along. Flare Labs CEO Hugo Philion said in July 2026 that the company is building FBTC using Flare Confidential Compute, a system based on trusted execution environments, hardware that processes data privately so large institutional trades are not fully visible on a public ledger. Philion has said the near-term focus is on shipping the code, with wider adoption depending on completed audits and enough stablecoin liquidity to support borrowing and lending against FBTC.

Why Does This Matter for XRP Holders?

XRP was designed for fast, cheap cross-border payments, not for hosting smart contracts. FAssets does not change the XRP Ledger itself. Instead, it gives XRP a second life on a separate, EVM-compatible chain while the original coins stay locked with an agent and remain redeemable. That lets XRP holders access lending, borrowing, and liquidity provision, activity sometimes referred to as XRPFi, without XRPL needing to become a smart contract platform.

Flare has also said FXRP is meant to serve as collateral for a planned XRP-backed stablecoin through Enosys Loans, and a liquid staking product called stXRP is in development to let staked XRP remain usable elsewhere in DeFi at the same time.

Where Does the FLR Token Fit In?

FLR is Flare's native token, used to pay network gas fees and as part of the collateral mix agents post to back FAssets. In late August 2026, FLR traded in roughly the $0.006 to $0.007 range across major exchanges, giving it a market capitalization of around $550 million to $585 million. The token touched a new all-time low of $0.005858 on August 19, 2026, before recovering slightly.

In June 2026, Flare governance approved FIP.16, a tokenomics overhaul that cut annual FLR inflation from 5% to a maximum of 3% and raised the base transaction fee. The change is designed to burn roughly 300 million FLR per year from circulation. It also created the Flare Income Reinvestment Entity (FIRE), a treasury that uses revenue from FAssets and other network services to buy back and burn FLR on the open market, tying the token's supply more directly to how much FAssets activity the network processes.

Conclusion

FAssets gives coins without native smart contract support, starting with XRP and eventually Bitcoin and Dogecoin, a working path into DeFi lending, trading, and liquidity provision. FXRP is live, overcollateralized by agents rather than a single custodian, and already carries more than 150 million tokens with most of that supply actively deployed across Flare's DeFi protocols. FBTC is in active development with a focus on institutional privacy tools, while FDOGE remains a planned addition without a set launch date.

Resources

1. The Block: Flare Network launches FXRP to let XRP be used in DeFi apps, with comment from Flare chief product officer Filip Koprivec
2. Flare Network: Official FAssets product page covering how minting, redemption, and collateral verification work
3. Flare Developer Hub: Technical overview of the FAssets protocol, agents, and the minting/redemption flow
4. Messari by Blockworks: Report on Flare's role in expanding XRP's use in DeFi and the FAssets roadmap
5. Flare Network: Announcement of the FAssets Incentive Program and its FLR token allocation
6. Flare Network: FAssets v1.1 launch details, including the FDOGE wind-down timeline
7. Crypto Alert News: Coverage of Flare CEO Hugo Philion's plans to extend FAssets to Bitcoin via FBTC
8. Crypto Economy: Report on Flare's post-XRP roadmap and confidential computing plans for Bitcoin
9. WEEX: Live FLR price and market capitalization data
10. MEXC News: Coverage of the FAssets v1.3 minting upgrade on Songbird
11. Flare Network: Official explainer on what changed in the FAssets v1.3 protocol upgrade
12. The Crypto Basic: Report on FXRP-collateralized RLUSD borrowing going live on Ethereum
13. CoinMarketCap: Live FLR price, market cap, and supply data