Messari Depth Report: How Flare Unlocks the Huge Potential of XRP DeFi through FAssets

With an infusion of liquidity and critical infrastructure maturing, Flare is at a pivotal moment to lead the XRPFi narrative. This article is sourced from an in-depth research report produced by Messari, written by Jeremy Koch, compiled by the content department of the moving area. (Synopsis: One click BTC, DOGE: . Converted into ERC-20 tokens, Flare launches FAssets to announce airdrop of $400,000 test reward) (Background supplement: Flare Network launches Songbird test: users can easily trade minting and unlock huge rewards) Messari, a well-known cryptocurrency research agency, recently released a (FLR) about the public blockchain Flare 's in-depth research revealed how Flare, as a "blockchain built for data", unleashes the huge potential of non-smart contract assets such as XRP in the decentralized finance (DeFi) field through its unique built-in data infrastructure and FAssets system. The report notes that with the infusion of liquidity and the maturity of critical infrastructure, Flare is at a critical juncture to lead the XRPFi narrative. Key Insights Flare's built-in data stack (FTSO + FDC) makes it a "blockchain built for data" that enables verifiable cross-chain activity and oracle data without relying on external intermediaries. This native infrastructure underpins FXRP's security and sets Flare apart from other L1 public chains. XRPFi introduces one of the most liquid assets in cryptocurrencies to the DeFi ecosystem. With FXRP, holders can mint a 1:1 XRP token on Flare in a fully non-custodial fashion, giving the token EVM-level composability. After Flare launched USD₮0, liquidity quickly emerged. Within 13 days of launch, Flare's TVL more than tripled (over $120 million), providing FXRP-based lending, AMM, and liquidity mining with the stablecoin depth needed to thrive. Not only FXRP, FBTC, FDOGE and other FAssets are on the Flare roadmap, which means that the same trust-minimized bridging architecture can mobilize liquidity in Bitcoin, Dogecoin, and other untapped ecosystems. Songbird plays a vital role as a production-grade canary network, and Flare uses Songbird to test upgrades such as FAssets v1.1 and proxy mechanisms under real-world economic conditions to provide innovative speeds and security solutions that help reduce the risk of mainnet deployments. The FAssets Unleashing the Potential of XRPFi report begins with an introduction to Flare (FLR), a full-end Layer-1 designed for data-intensive use cases that has a robust data infrastructure built into it and bridges the gap between non-smart contract blockchain assets and the DeFi world. FTSO (Flare Time Series Oracle): As a native oracle, FTSO provides decentralized data feeds to the Flare network without relying on external middleware. FDC (Flare Data Connector): Designed to validate external data for the EVM status of Flare FAssets: Fully collateralized asset representatives capable of creating non-smart contract assets on Flare. A representative example of FAsset is FXRP, which is a version of XRP that can be used in Flare's EVM-compatible environment. FXRP contributed to the development of XRPFi: the emergence of the DeFi ecosystem built around XRP. Flare's technology provides a pathway for XRP to unlock its potential value and integrate it into the broader DeFi landscape. This potential has captured the attention of retail and institutional investors, setting the stage for perhaps one of the most significant advances in the XRP ecosystem since its inception. Institutional interest in FAsset drives XRPFi narrative The Messari research report takes a deep dive into FAssets, a core innovation in the Flare ecosystem that brings non-smart contract blockchain assets (e.g., XRP, BTC, DOGE) to Flare with a trustless, decentralized system. The report uses FXRP as an example to illustrate how it works. Unlike traditional encapsulated token (wrapped tokens), which relies on centralized custodians, FXRP's minting process is secured by a decentralized proxy network and an over-collateralized mechanism. A recent v1.1 upgrade to FAssets introduces the Core Vault (Core Vault), an innovation designed to enhance system liquidity and scalability. The core vault acts as a liquidity center that allows agents to deposit XRP and in turn unlock collateral on the Flare blockchain. These collateral can then be used to mint FXRP or be distributed elsewhere. For non-smart contract chains like XRPL, FAssets represent a transformational opportunity that allows XRP token holders to participate in the full range of DeFi activities (i.e., XRPFi), such as lending, liquidity farming, and liquidity supply, which compensates for XRP's historically limited limitations in DeFi applications and provides a critical way to unlock its potential value without sacrificing asset custody. FAssets continue to be developed and deployed, FXRP has gone live on the Songbird testnet, and the interest in XRPFi has been very strong in response to Songbird deployment, quickly reaching the $2 million test limit in just four days. FXRP is still to be launched on the Flare mainnet, mainnet launch plans are well underway, and the official Flare team is working hard to ensure a smooth launch. Institutional interest around FAssets has also emerged, with U.S. digital currency platform Uphold holding more than 1.8 billion XRP expressing interest in participating in the FAssets ecosystem. In addition, Nasdaq-listed VivoPower is deploying $100 million worth of XRP on Flare. This institutional interest can be seen as a major player within the XRP ecosystem looking to FAssets as a pathway to XRPFi. For retail investors, XRPFi democratizes financial services previously unavailable to XRP holders, allowing individual investors to participate in the same interest-bearing activities as large institutions and earn returns on their XRP holdings. Flare has been building the infrastructure for XRPFi for years, focusing on security, scalability, and user experience, building a foundation that supports the sustainable growth of the XRPFi ecosystem. The report is bullish on the future potential of XRPFi, saying: "Unlocking the dormant value of XRP is important for DeFi...