How are FAssets built different?

Bridges connect blockchain ecosystems, but they typically only facilitate the transfer of tokens from one chain to another. Flare’s FAssets system is designed to go further. Rather than simply moving XRP onto Flare, it unlocks its full potential by enabling trustless and non-custodial use within Flare DeFi, while also ensuring interoperability with other major ecosystems.

How do FAssets go beyond traditional bridges?

Flare is an ecosystem built for high-integrity data and interoperability, unlocking XRP utility. FXRP runs on decentralized rails, with collateral and positions visible onchain and verified by Flare's native oracles: the Flare Time Series Oracle and Flare Data Connector.

With the user’s assets now available on Flare, it is fully composable — able to be used across Flare’s DeFi ecosystem, such as serving as collateral to borrow against or to mint stablecoins. As a result, holders are given direct access to DeFi opportunities while retaining their native assets.

This is in sharp contrast to traditional custodial bridges, which often rely on centralized partners and off-chain controls, introducing single points of failure and reducing transparency. 

At its core, Flare’s XRPFi vision is to make XRP a fully programmable asset by unlocking DeFi utility for XRP holders in a way that is:

• Secure
• Non-custodial
• Robust
• Institutional-grade compliant

XRPFi provides users with a trust-minimized path to both retail and institutional DeFi opportunities, while optimizing user experience through intent-based designs with partners. A clear example is the upcoming XRP Earn Account from MoreMarkets, which allows XRP holders to access real, on-chain yield without navigating multiple wallets or blockchains. All the behind-the-scenes details — from the FXRP minting process, to deployment into DeFi strategies, to reward distribution — are abstracted away from users. This simple user experience on the surface is powered by Flare’s FAssets and secure infrastructure underneath. More partnerships like this, focused on expanding the distribution of XRPFi, are on the way.

FAssets are secure by design

The FAssets system addresses commonly cited security models associated with traditional bridges by taking a deliberate, multi-layered approach that prioritizes security at every stage.

• Tested on Coston and Songbird: The FAssets system has been tested extensively on Flare’s test networks, Coston and Songbird. On Coston, the first private beta showed the system working as designed. Testing then expanded to Songbird, a canary network with real value, where XRP and DOGE were successfully minted as FAssets in a live environment. Using SGB as collateral, Songbird provides a real-world proving ground ahead of the Flare mainnet launch.
  
• Audited in multiple stages: The code has gone through internal reviews, multiple full audits from Coinspect and Zellict, testing through a Code4rena competition, and Immunefi bug bounties to make sure FAssets are tested and resilient against potential vulnerabilities. In addition, the FAssets system and the DeFi applications on Flare are monitored 24/7 by Hypernative. Extensive rapid response and security processes are also in place.
  
• Built-in security: The decentralized system continuously responds to updated market prices to assess whether an agent’s collateral remains sufficient. If an agent’s collateral ratio falls below the defined safety threshold, automated mechanisms — such as liquidation or challenge processes — are triggered to protect the system’s solvency. The FAssets system also includes a structured three-level emergency pause mechanism that allows governance to selectively restrict operations in response to planned upgrades, critical failures, or security threats.

The layered approach to security makes FAssets more resistant to potential exploits and reliable enough to meet high institutional standards.

FAssets are built for composability

Wrapped assets on other chains often get stuck in silos, limited to use on just a few applications. FAssets are designed differently to avoid this issue. For example, once minted, FXRP can flow freely across Flare’s DeFi ecosystem. This means protocols can build directly on top of FAssets, integrating them as native building blocks without needing custom solutions or workarounds. 

FXRP can be put to work for use cases like:

• Lending & borrowing: Use FXRP as collateral for lending & borrowing on Kinetic.
• Liquid staking: Put FXRP to work on Firelight to earn staking rewards while maintaining liquidity.
• Liquidity provision: Supply FXRP on SparkDEX or BlazeSwap for yield.

Whether for lending, liquidity, or staking, the system is designed for universal interoperability across Flare, providing a foundation that can scale with both retail adoption and institutional demand. 

How will Flare scale FAssets post-launch?

With FAssets now live on mainnet with FXRP v1.2, Flare intends to scale the system safely and sustainably with incentives and careful guardrails

At launch, FXRP minting had a 5 million minting cap for week one in order to prioritize security, with plans to gradually ramp up to ensure stability as adoption grows. Holders saw this play out as Flare rolled out minting cap increases several times since, with each increase being minted out faster than the preceding cap. At this moment, there are nearly 20 million of  FXRP on Flare. 

To keep up real-time metrics on FXRP such as minting, collateral levels, or market cap, check out the FAssets page on Dune. These analytics will provide users with a live view of how XRPFi continues to scale across Flare.

Flare has also introduced targeted rFLR incentives directed to key DeFi pools, including FXRP/USD₮0 liquidity pools on SparkDEX, BlazeSwap, and Enosys. The incentives are designed to bootstrap liquidity and channel it into areas that drive meaningful on-chain activity.

What’s next for FAssets?

Looking ahead, FXRP will deepen its role in the Flare ecosystem. Enosys Loans enabled the first XRP-backed stablecoin using FXRP as collateral, currently on Coston before it goes live on mainnet. Soon, Firelight will introduce staking with stXRP, creating new yield opportunities and expanding collateral options. 

With FAssets at the core, Flare is transforming XRP into a fully composable DeFi asset.

Learn how to mint FXRP here: https://youtu.be/twQssoObKuk?si=pMiqr6b__20OC48J