Is XRP About to Get Busier? Flare Opens a New DeFi Path With Modular Lending

Updated

February 5, 2026

Gambar Is XRP About to Get Busier? Flare Opens a New DeFi Path With Modular Lending

Jakarta, Pintu News – Ripple’s utility in the decentralized finance sector is expanding again after Flare Network introduced the first modular lending feature for XRP. This initiative allows XRP to directly participate in the DeFi ecosystem without having to leave its technological foundation.

Flare’s move is strategic in a weakening crypto market, as it focuses on strengthening fundamentals rather than short-term price movements. For the cryptocurrency ecosystem, this development confirms the ongoing efforts to transform XRP from a passive asset to a productive financial instrument.

Flare Launches Modular Lending for XRP

Flare Network officially announced the launch of modular lending for FXRP, a 1:1 version of Ripple (XRP) that runs on the Flare network. Through this feature, FXRP holders can use their assets as collateral to borrow stablecoins and other crypto assets. This modular lending was developed through Flare’s partnership with Morpho and Mystic, two protocols known in the DeFi space. Flare calls this move an important milestone in XRPFi’s vision, which is to make XRP an active source of liquidity and yield.

With a modular mechanism, FXRP can be placed into a curated vault that is yield-bearing. Users can not only borrow, but also combine staking, lending, and borrowing strategies iteratively. This model opens up capital efficiency opportunities that were previously unavailable to XRP holders. Flare emphasizes that all of these strategies maintain a link to the XRP Ledger (XRPL) as the base layer.

Integrated DeFi Strategy for FXRP Holders

The launch of modular lending completes Flare’s series of initiatives in building an XRP-based DeFi ecosystem. A few weeks earlier, FXRP was introduced on Hyperliquid as the first decentralized spot market for XRP. In addition, Flare also presents staking through Fireflight and yield tokenization through Spectra. This combination of features expands the choice of financial strategies for XRP holders without having to sell their core assets.

With modular lending in place, FXRP can now serve as active collateral in various DeFi schemes. Token holders can earn returns, access liquidity, and strategize leverage more flexibly. This approach is considered important to increase XRP’s competitiveness amid the dominance of the Ethereum -based DeFi ecosystem. In the long run, Flare expects this model to drive wider adoption of XRP in the cryptocurrency market.

Tokenization of Real World Assets Strengthens XRP Fundamentals

In addition to DeFi development, the XRP ecosystem also received a boost from the real-world asset tokenization sector. Billiton Diamond and Ctrl Alt announced plans to tokenize more than US$280 million in certified polished diamonds on the XRP Ledger. The project is directly supported by Ripple, which will provide custody services for the assets. XRPL was chosen for its advantages in settlement speed, low fees, and scalability.

This diamond tokenization strengthens XRPL’s position as infrastructure for real-world assets (RWA). The more physical assets that are tokenized, the greater the potential for on-chain activity involving XRP. Ripple executives called this initiative tangible proof that crypto technology is capable of bridging the physical and digital economies. From a fundamental standpoint, this development has the potential to increase the utility and relevance of XRP beyond just a value transfer tool.

XRP price under pressure, fundamentals strengthen

Although fundamental catalysts continue to emerge, the price of Ripple (XRP) is still pressured by the overall crypto market conditions. Market data shows XRP is trading at around US$1.57 or around Rp26,330, down more than 2% in the last 24 hours. This decline is in line with the broad correction in the cryptocurrency market, including Bitcoin which briefly fell below US$76,000. Major altcoins such as Ethereum (ETH), Solana, BNB, and Dogecoin also recorded significant losses.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

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