- Flare Network launched the first XRP-backed stablecoin through Enosys Liquity V2.
- This allows XRP holders to mint stablecoins without selling their assets.
Enosys introduced an XRP-backed stablecoin protocol on the Flare blockchain using a fork of Liquity V2, marking the introduction of the first on-chain debt protocol utilizing XRP as collateral.
The expansion is a significant increase in the use of XRP in decentralized finance applications.
The first XRP-backed stablecoin comes to @FlareNetworks with @enosys_global Loans ☀️
→ Launching with FXRP and wFLR, then stXRP and other FAssets
→ Backed by Collateralized Debt Positions (CDPs) mechanism
→ @LiquityProtocol V2 friendly fork + Stability pools + FTSO-powered… pic.twitter.com/ehK8lbGuXl— Flare ☀️ (@FlareNetworks) September 19, 2025
The stablecoin system functions on Collateralized Debt Positions, where users can secure their holdings in the form of XRP and mint stablecoins without selling them. The new stablecoin is built on Enosys Liquity V2 and uses XRP as its collateral with Wrapped Flare tokens.
Collateral options of wrapped XRP on Flare (FXRP) and wrapped Flare tokens (wFLR) allow users to gain access.
Stablecoin minting will initially be offered to FXRP and wFLR depositors, and Staked XRP (stXRP) and FlareBTC (FBTC) services will come in. The protocol will subsequently be extended into the staked XRP and other tokenized assets under the Flare FAssets system.
Technical Infrastructure Powers Innovation
Enosys Liquity V2, an adapted Liquity protocol to Flare, drives the new product. Liquidity had been securing Ethereum collateral, but now Enosys has restructured its usage on Flare using XRP. This adaptation preserves the main Liquity characteristics and incorporates Flare’s decentralized oracle system.
The protocol also uses the Flare Time Series Oracle (FTSO) for a decentralized pricing feed. This will guarantee proper asset valuation without having centralized price sources. The system has stability pools and safety systems that ensure the reliability of the stablecoin throughout the market conditions.
Enosys Loans is a Flare Network DeFi app that enables users to use non-smart contract assets like XRP and Bitcoin as collateral to mint a stablecoin. The platform allows XRP holders to use DeFi’s services and remain exposed to their assets in the long term.
Users can deploy the newly minted stablecoins on a variety of DeFi applications. These are lending protocols, trading platforms, yield farming opportunities, and NFT marketplaces. The flexibility broadens the XRP application outside traditional payment applications.
Market Adoption Coincides With Network Growth
The stablecoin introduction aligns with expanding XRP Ledger adoption statistics. Recent data released by XRPScan shows that the XRP Ledger has more than 7 million accounts. This achievement shows an increasing user activity on the network.
The Flare XRP DeFi has already attracted a number of institutional participants. Everything Blockchain has integrated the system for treasury management purposes. This initial adoption indicates a possibility of an expansion of the institutional participation.
Hugo Philion, the CEO of Flare Networks, emphasized how the stablecoin could be used in digital commerce. The tokens may support buying NFTs and other transactions in the digital economy. This opens utility to more than just the DeFi applications to wider Web3 commerce.
At the time of writing, XRP is trading at $2.97, down 0.66% in the last 24 hours.
