On June 10th, the XRP Ledger Apex 2025 conference was held in Singapore. At the conference, a concept called “XRPFi” became the focus of heated discussion on social media. XRPFi, which is the combination of XRP and Decentralized Finance, is being seen by an increasing number of practitioners as a new path to activate XRP, this old crypto asset, and promote the growth of the XRPL and Ripple ecosystem.

XRP is one of the most representative assets in the crypto market, with a market capitalization close to $134.4 billion, making it the highest market capitalization non-smart contract cryptocurrency after Bitcoin. With its fast and low-cost cross-border payment capabilities, XRP has stable applications in traditional financial scenarios. However, in the on-chain domain, XRP has long lacked smart contract support, making it difficult to integrate into the mainstream Decentralized Finance ecosystem, and this structural contradiction has gradually become a focal point of attention.

As the SEC pauses its lawsuit against Ripple, Ripple’s stablecoin RLUSD approaches a market capitalization of $390 million, and speculation around the XRP ETF continues, investors’ expectations for the future of XRP are gradually rising. Some institutions and retail investors are beginning to focus on how XRP can leverage Decentralized Finance to generate returns and enhance asset utilization efficiency, which has also driven the birth and development of the “XRPFi” concept.

Empowering XRPFi with Flare to create a multi-chain interoperable Decentralized Finance ecosystem.

In the current development process of XRPFi, Flare Network is regarded as a key infrastructure provider. While the XRP Ledger (XRPL) performs excellently in terms of speed and stability, it has inherent limitations in the composability and contract functionality required by Decentralized Finance. Therefore, Flare chooses to technically empower XRP, becoming the core engine bridging the traditional XRPL and the multi-chain DeFi ecosystem.

Flare is an EVM-compatible L1 blockchain designed for multi-chain interoperability. Its FAssets protocol can map non-smart contract assets such as XRP to FXRP, enabling them to have contract call capabilities, thus seamlessly integrating with decentralized lending, trading, and derivatives protocols. With this mechanism, XRP holders can participate in mainstream yield activities on chains, including staking and liquidity mining.

In addition, Flare has introduced the USD₮0 stablecoin, issued as a native asset based on the LayerZero OFT (Omnichain Fungible Token) standard, which has cross-chain native interoperability. When paired with XRP, USD₮0 can not only be used to build trading depth pools and lending collateral but also connect to the USDT ecosystem with a market capitalization of over 155 billion dollars, injecting high liquidity into the XRPFi ecosystem as a “capital base.”

According to official data, the Flare ecosystem has seen significant growth recently: as of June 10, the TVL exceeded $157 million, mainly due to the launch of USD₮0, which currently has a supply of approximately $92.1 million. Looking at a longer time frame, from February 2024 to February 2025, Flare’s TVL is expected to grow over 400% year-on-year. At the same time, Flare has also integrated wallet tools compatible with XRPL, such as Bifrost and Oxenflow, further lowering the entry barrier for users.

Flare describes its XRPFi system as a “flywheel model”: providing capital sources at USD₮0, FXRP achieves contract composability, and the pairing of the two brings liquidity, which in turn drives more Decentralized Finance applications and real-world scenarios, thus feeding back into the long-term ecological value of XRP.

In the future, Flare also plans to bring non-smart contract assets like Bitcoin and Dogecoin into Flare, expanding its use cases in the Decentralized Finance field.

Build the XRPFi yield matrix, with CeDeFi and on-chain strategies running in parallel.

While building compatibility on the Flare chain, Doppler Finance has designed a complete set of yield mechanisms around XRP, attempting to fill the gaps in XRP’s past in terms of yield generation and financial products. As of June 8, the platform has attracted over $30 million in TVL, becoming one of the important participants in the XRPFi space.

Doppler Finance offers two main types of yield products: CeDeFi yields and on-chain DeFi strategies. The former primarily involves asset management through institutional-grade custody and quantitative operations, while the latter explores on-chain yield scenarios including lending, stablecoin strategies, and staking.

In the CeDeFi model, users deposit XRP into a dedicated address, and the assets are held by custodians such as Fireblocks and Ceffu, and are transferred to centralized exchanges as planned to conduct quantitative strategies, such as arbitrage and basis trading. The profits are settled off-chain and returned to the user’s account.

In terms of on-chain yields, Doppler is actively integrating with the XRPL sidechain ecosystem, including EVM-compatible networks and emerging protocols. Its strategies include:

1. XRP Lending: Earn interest or native rewards by depositing XRP into an audited and compliant lending protocol. Borrowers use other assets as collateral, and the platform automatically manages the liquidation process to ensure security.
2. Stablecoin Yield Strategy: Use XRP as collateral to borrow stablecoins (such as USDC), and then deploy them into stablecoin yield protocols. Doppler adopts a conservative LTV ratio and dynamically adjusts positions to achieve low-risk returns.
3. Liquidity Staking and Leverage Strategy: Users can perform one-click leveraged staking in specific LST pools, especially around sidechain tokens like ROOT. This mechanism simplifies cumbersome operation processes through automated contracts, enhancing user experience.

To further reduce risks, Doppler Finance is building a risk-isolated lending market that allows different asset pools to operate independently, thereby avoiding high-volatility assets from dragging down the overall system stability. In addition to the core pool containing mainstream assets such as XRP, USDC, and ROOT, Doppler Finance also plans to launch multiple isolated markets, including an LST pool designed specifically for leveraged yield farming, as well as isolated markets containing game tokens from the Futureverse ecosystem.

Due to the involvement of XRPFi in cross-chain asset management and advanced strategy execution, its security mechanisms have become an important part of the project design. Currently, Doppler Finance employs a multi-layer risk control mechanism.

In terms of asset custody, the platform selects top industry service providers (such as Fireblocks and Ceffu) and ensures asset security through measures such as cold wallet management, on-chain verification, and bankruptcy isolation. In terms of quantitative trading, the platform adopts a multi-strategy and multi-team collaboration model, and designs most operations as “lending contract structures” to ensure that the principal can be recovered under non-extreme conditions.

In addition, according to official information, all cooperative operators must undergo rigorous due diligence, including assessments of historical performance, strategy stability, AUM scale, and financial risk, to select qualified institutions to participate.

Filling the gap in the DeFi market, XRPFi is still in the early stages.

With the inward competition of the Ethereum DeFi ecosystem, the market is turning its attention to high market capitalization assets that have not yet been fully activated. The emergence of XRPFi fills the long-standing gap of “high market capitalization, low chain usage” for XRP. XRPFi enables XRP, which originally lacked smart contract capabilities, to enter the DeFi ecosystem through technologies such as the FAssets protocol on the Flare network. Doppler Finance is building a comprehensive set of sustainable yield mechanisms, including CeDeFi yields and liquid staking, which not only have real pathways but also invest resources to enhance security and user experience.

Logically, the development of XRPFi responds to the urgent demand generated by the activation of XRP and the development of the Ripple ecosystem. However, it should be noted that the current XRPFi ecosystem is still in its early stages. Although the product roadmap of Flare and Doppler is relatively clear, the overall user scale, liquidity depth, and protocol maturity still need to be verified. How will old assets integrate into new narratives? PANews will continue to keep an eye on this.

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