Trade XRP options and perps with FXRP as collateral on Derive

What's live

Flare's XRPFi stack continues to deepen with FXRP now supported as collateral on Derive, the largest onchain options exchange in DeFi. FXRP can post it as collateral on Derive and trade XRP options and perpetuals and spot against it — self-custodially, while the underlying XRP is retained on the XRP Ledger. 

This is a permissionless XRP options market. Like Morpho for lending, it lives at the contract level — no KYC, no gatekeeper, no venue deciding who can trade. Any FXRP holder can post collateral and open a position directly from their own wallet. It adds the volatility and hedging layer to XRPFi, giving XRP holders a way to generate income and manage risk onchain rather than only holding, lending, or borrowing.

Why it matters for XRPFi

Flare has turned XRP from a dormant asset into a productive one: FXRP minting via FAssets, spot trading via Hyperliquid, yield tokenization through Spectra, permissionless lending through Morpho, and institutional lending collateral in Sentora's RLUSD vault.

Options have been one of the fastest-growing instruments in crypto, and most of that demand is holders wanting to earn premium on assets they already own, or take leveraged directional views with defined risk. Until now, XRP holders have had little way to do either onchain, and nowhere permissionless to do it at all. Derive supplies the venue, FXRP is the collateral that connects it to the rest of the stack, and the whole flow runs without anyone's permission.

The path is now continuous: XRP → FXRP → collateral → options, hedging, and structured yield, every step onchain, self-custodial and permissionless.

"XRP has one of the most committed long-term holder bases in crypto, and until now they've had no permissionless options market to generate yield or hedge against their position. FXRP on Derive changes that, while the underlying XRP stays on the XRP Ledger." — Will Procheska, DeFi Analyst

What FXRP holders can do on Derive

With FXRP as collateral on Derive, holders can:

• Earn income against XRP by selling options at a strike they're willing to sell at, or puts at a strike you're willing to buy at — and collecting the premium either way
• Hedge downside on a large XRP position with protective puts, without selling a single unit
• Cap risk with spreads, defining a maximum give-up rather than surrendering all upside above a strike
• Take directional views with perpetuals from the same FXRP collateral balance

Because options, perpetuals and spot all margin from one FXRP balance under Derive's Portfolio Margin V2, these strategies are capital-efficient rather than fully cash-collateralised.

One note on mechanics: Derive's XRP options are cash-settled in USDC rather than by physical delivery of XRP. Selling an option is a commitment — a call to sell at your strike, a put to buy at your strike — that you earn premium for, with any difference at expiry settled in USDC while you keep your FXRP. It is a way to generate income against a position, not a free hedge, and it carries real risk. Hold USDC for settlement and understand margin requirements before opening any short position. See full mechanics in Derive's docs here.

About Derive

Derive is the largest onchain options exchange in DeFi, rebuilt from Lyra Finance and traded self-custodially from a user's own wallet. It is permissionless at the protocol level: options, perpetuals and spot settle through a single margin engine, matched by a central limit order book with professional market makers — CEX-level execution with the advantages of self-custody. It is a full options market, with both sides of the book across a range of strikes and expiries, rather than a single pre-set strategy.

Derive's activity has grown quickly through 2026, processing over $297m in perpetuals volume in the past 30 days. CME listed the first CFTC-approved XRP options in October 2025. Derive brings that same options capability onchain and permissionless, without a custodian.

“Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure,” said Nick Forster, Founder and CEO of Derive. “Flare has done the hard work of making XRP programmable and building the foundation for a real XRPFi ecosystem. 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.”

Getting started

If you already hold FXRP:

1. Deposit FXRP directly into Derive on Flare — no separate bridging step — and create an XRP subaccount under Portfolio Margin V2.
2. Fund USDC for cash settlement before opening any short position.
3. Trade XRP options and perpetuals against your FXRP collateral.

If you hold XRP but not FXRP:

1. Mint FXRP through Flare's FAssets system.
2. Then follow the steps above.

FXRP as collateral on Derive is another step toward a composable, institution-grade XRPFi ecosystem — and a look at what programmable finance for XRP looks like in practice.

What's next

Structured products are the natural next step as this market matures — vaults that run a strategy on a depositor's behalf, so the decision becomes "deposit FXRP, earn a volatility-driven yield" rather than managing strikes and margin. The strategy curators are most interested in building is put-selling to accumulate: getting paid premium to commit to buying XRP at lower prices, turning a standing bid into income. It's a natural fit for a holder base that wants more XRP, and it's something Flare and Derive can build toward together.

Trade XRP options on Derive: https://app.derive.xyz/trade/options?symbol=XRP

Mint FXRP: https://fassets.au.cc