Flare Networks co-founder and CEO Hugo Philion has announced the start of a six-month phase of large-scale integration that is expected to radically transform the XRP-based decentralized finance ecosystem, known as XRPFi.
The first technological updates will begin rolling out within the next two weeks, turning Flare into a fully programmable layer for the historically isolated XRP Ledger (XRPL).
Because XRPL was originally designed exclusively for fast payments and does not support smart contracts, billions of dollars worth of XRP have remained in wallets for years without any practical utility.
Flare is attempting to solve this problem through its FAssets system. Users can convert their coins into the wrapped FXRP token at a 1:1 ratio via hot wallets, gaining access to staking, liquidity pools, and on-chain lending.
How Flare plans to attract 5 billion XRP over the next six months
Investors have embraced the initiative, and FXRP issuance has already exceeded 150 million tokens. In the long term, Philion expects the protocol to attract up to 5 billion XRP, representing approximately 5% of the coin’s total supply and potentially creating a real shortage of the asset on exchanges.
At the same time, the team is addressing the main problem of traditional DeFi: complete transparency, which discourages large capital holders.
The upcoming Confidential Compute technology, based on trusted execution environments, or TEEs, will allow institutions to execute large trades and take out loans while keeping commercially sensitive information hidden from competitors, with transactions remaining fully and mathematically verifiable on the main network.
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However, whether the XRP price can justify retail investors’ expectations remains an open question. Contrary to hopes of an immediate price surge, the current news backdrop requires realism.
The six-month period outlined by Philion is a window for deploying the code, while institutional players will require additional months to conduct security audits of the new bridges.
In addition, the ecosystem critically needs a large inflow of liquidity in stablecoins such as USDT and USDC before lending protocols can become fully operational, something Flare’s management has directly acknowledged during private sessions. Until these infrastructure challenges are resolved, XRP’s market price will continue to follow broader macroeconomic trends and Bitcoin’s movements, temporarily ignoring local successes achieved by developers.
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