What is FXRP? Flare's wrapped XRP explained

FXRP lets XRP holders use their XRP in Flare's lending markets, exchanges and vaults, with collateral posted behind every token.

FXRP is an ERC-20 token on Flare Network that tracks XRP one for one. The XRP Ledger has no general-purpose smart contracts, so native XRP can't go into a lending market or a vault. Once it's converted to FXRP on Flare, it can.

On 23 September 2026 the FXRP contract showed 145,221,618 tokens outstanding. Minting changed in May 2026 and most guides online still describe the old flow, so everything here follows Flare's current documentation.

What FXRP is

FXRP is the XRP version of FAssets, Flare's over-collateralised bridge for assets from chains without smart contracts. The design also covers Bitcoin and Dogecoin, though only XRP minting is live. As an ERC-20 token, FXRP works in EVM wallets like MetaMask and Rabby and in any Flare protocol that accepts tokens.

Two Flare network services run underneath, and both are shared across the whole network:

• Flare Data Connector proves a payment happened on the XRP Ledger, so nobody has to take an operator's word for it.
• Flare Time Series Oracle supplies the price feeds used to value the collateral.

Is FXRP the same as XRP?

They trade at the same price and are different assets. XRP is the native asset of the XRP Ledger. FXRP is a token on Flare that holders can redeem for XRP at any time, and that redemption right keeps the two prices together.

Converting adds three risks:

• a bug in the FAssets contracts
• an agent that can't cover its position
• a collateral shortfall during a sharp price move

The system is over-collateralised to absorb those, and the collateral section below gives the ratios.

In many countries, converting XRP to FXRP also counts as a disposal for tax, so a large unrealised gain could become taxable at the point of conversion. Check with a tax adviser before moving a big position.

How XRP becomes FXRP

Since FAssets v1.3 went live on 14 May 2026, minting takes a single XRP payment that never leaves the XRP Ledger:

1. Send XRP to the Core Vault, an address on the XRP Ledger that the FAssets system controls. A destination tag or memo on the payment tells it which Flare address gets the FXRP.
2. An executor submits proof of the payment on Flare and takes a fee.
3. FXRP arrives at your Flare address.

The older flow, where you picked an agent and paid its XRPL address directly, was retired in that upgrade.

Costs and limits, from Flare's operational parameters:

• 0.1% minting fee (minimum 0.1 XRP), plus a flat 0.2 XRP executor fee
• Capped at 4 million XRP per hour and 40 million per day
• A single mint above 4 million XRP waits two hours
• If the final step fails, no FXRP is minted and the XRP stays in the Core Vault until it's recovered

Bifrost, Ledger, Luminite and OxenFlow handle both chains. Xaman covers the XRPL side only, so it needs pairing with an EVM wallet. For small amounts, buying FXRP on a Flare DEX is quicker than minting, at whatever spread the market quotes.

How redemption works

You send FXRP to the Asset Manager contract and it's burned. The system then picks tickets from the front of a first-in-first-out queue, each belonging to an agent, and those agents pay you XRP on the XRP Ledger.

• Agents have 225 XRPL blocks or 15 minutes, whichever comes first, plus 45 seconds per extra request when one agent is busy
• A request can take up to 20 tickets, so a large redemption may need two passes
• Minimum redemption is 5 XRP, lot size is 10 XRP, and the fee is 0.2%

If an agent misses the deadline, you're paid from its collateral plus a 5% premium. A failed agent costs you time, and your principal stays covered as long as that collateral holds its value.

What backs FXRP

Collateral comes in two layers:

• Vault collateral is posted by the agent in a governance-approved asset. For FXRP that's USDT.
• Pool collateral is always FLR, and anyone can supply it. Suppliers get pool tokens that earn a share of agent fees and stay locked while they back minted FXRP.

So an agent backing FXRP has posted at least 1.2 times the position in USDT, and the FLR pool behind it holds at least 1.5 times. A sharp fall in FLR or a USDT depeg would strain that cover. Always make sure to do your own research and be aware of the above and any other risks before depositing.

Where the 145 million FXRP sits

Flare's product page says more than 155 million FXRP were minted in the first seven months. That's a running total of every mint. The 145.2 million on the contract today is what's still outstanding after redemptions.

Upshift's two Flare vaults hold about 27.6% of it. The Flare XRP Yield Vault has about 32.3 million FXRP in assets and the Monarq XRP Yield Vault about 7.8 million. The rest circulates through Flare's lending markets and DEXs.

FXRP beyond Flare

FXRP is a LayerZero omnichain token on Ethereum, Base, BNB Chain, Monad, HyperEVM and others, so it moves between chains as the same token with no extra wrapper.

On Ethereum, FXRP was approved as collateral in a $280 million RLUSD lending vault in August 2026. On 23 September 2026 that market held $16.7 million of FXRP collateral (10.6 million FXRP) against 7.05 million RLUSD borrowed, at a 77% maximum loan-to-value. Holders can borrow stablecoins against their XRP without selling it.

What FXRP yield means

Holding FXRP earns nothing. Flare's chief product officer told The Block, "FXRP itself doesn't pay yield," so any return comes from where you put it. Native XRP has no staking either: the XRP Ledger runs on validators from a trusted node list, and Ripple doesn't pay them, by design.

A vault runs that allocation for you. You deposit FXRP, get a share token, and a curator allocates across protocols within limits written into the contract. The share token grows against FXRP as the strategy earns, with nothing to claim or restake. Upshift's DeFi yield vaults work this way across more than 30 chains.

Some advertised FXRP rates are paid in token incentives, and those stop when the programme ends. Any quoted rate is a snapshot. Live figures for the Flare XRP Yield Vault and the Monarq XRP Yield Vault are on their vault pages.

What can go wrong

FAssets launched on mainnet in September 2025, which is young for a bridge. It had four independent audits before launch, including Zellic and Coinspect, plus bug bounties and third-party monitoring, and has been upgraded twice since. Over-collateralisation and a non-custodial design reduce the chance of a contract bug or collateral shortfall causing a loss, and can't remove it.

A vault adds its own layer of risk, from the vault contracts and from the curator's choice of strategy. Upshift's contracts have had 10 smart contract audits by 6 independent firms, and each vault can only reach the protocols its contract whitelists. Always make sure to do your own research and be aware of the above and any other risks before depositing.

Frequently asked questions

Is FXRP the same as XRP?
They trade at the same price and are different assets. XRP lives on the XRP Ledger. FXRP is a token on Flare that can be redeemed for XRP, backed by collateral that agents post.

How much is FXRP worth?
About the same as XRP, since any holder can redeem one for the other. Prices on Flare DEXs drift slightly either side until arbitrage closes the gap.

What is FXRP yield?
The return from putting FXRP to work: lending it, providing liquidity, or depositing it in a vault. Holding it earns nothing.

Can I stake XRP?
The XRP Ledger has no native staking and its validators are unpaid, so any return on XRP comes from a product built on top.

How do I get my XRP back?
Send FXRP to the Asset Manager contract. It's burned, and agents from the redemption queue pay you XRP on the XRP Ledger within 15 minutes. If one fails to pay, you're compensated from its collateral plus a 5% premium.

Can I still claim the Flare airdrop for holding XRP?
No. The XRP-holder airdrop went out in January 2023, based on a December 2020 snapshot. The monthly FlareDrop ended on 30 January 2026 after 36 months, and it paid wrapped FLR holders.

Do I pay tax when I convert XRP to FXRP?
In many countries the conversion counts as a disposal. Ask a tax adviser before converting a large position.

Keep reading

• Flare XRP yield: how XRP vaults on Flare work. Depositing FXRP, how the strategy is built, and how withdrawals are processed.
• Who does what in an onchain vault. Who holds the keys, who picks the strategy, and what happens if either fails.
• Upshift's risk management framework. How protocol restrictions and exposure limits are enforced in the contracts.
• Flare's FXRP documentation. Minting routes, supported wallets and integration details.
• How multi-asset vaults work. How a vault takes several deposit assets and redeems in one reference asset.