Flare and Xaman Unlock One-Click DeFi for Over 2B Idle XRP

Flare and Xaman have joined forces to deliver one-click DeFi access for more than 2 billion XRP tokens that have been sitting dormant in wallets, the two projects announced on February 26. The idle holdings, estimated at roughly $3 billion and representing about 3.5% of XRP's circulating supply, have been effectively cut off from decentralized finance because reaching DeFi protocols required downloading separate wallets, bridging assets across chains, acquiring gas tokens, and navigating unfamiliar platforms. Under the new arrangement, Xaman wallet holders can route their XRP directly into a curated vault on the Flare blockchain through a single action, according to a statement shared with reporters.

How Do Flare and Xaman Enable One-Click XRP DeFi?

The integration relies on three components operating behind the scenes to compress a traditionally multi-step process into one transaction. FAssets generate a trust-minimized representation of XRP on the Flare network, functioning as a wrapped version of the token capable of interacting with smart contracts. Flare Smart Accounts then eliminate the need for users to manage a secondary wallet by abstracting away cross-chain private-key management, allowing holders to authorize transactions using their existing XRPL credentials.

Xaman serves as the user-facing layer, embedding the entire workflow directly inside the wallet that many XRP holders already rely on daily. From the holder's perspective, only a single action is required. Behind the scenes, Flare's Data Connector validates each request while Smart Account controllers handle the minting of the wrapped asset, allocation into vault strategies, and any subsequent yield distribution back to the user.

This integration lets our users explore new options directly from the wallet they already know, while keeping full control of their keys and decisions.

— Wietse Wind, Founder of Xaman

Vault Strategies and Risk Management

Capital deployment within the curated vaults is managed by Upshift and overseen by Clearstar, which handle risk management and strategy curation respectively. While specific yield targets were not disclosed, the vault strategies are constructed around established DeFi primitives including lending markets, collateralized positions, and structured products. The approach aims to offer XRP holders productive yield without requiring them to understand or manually interact with each underlying protocol.

Early adoption signals indicate real demand among XRP holders for putting their tokens to work rather than leaving them dormant. Flare's existing wrapped XRP token, known as FXRP, has surpassed 100 million in minted supply, according to Flare. More than 60 million FXRP tokens are currently deployed across staking programs and structured products, suggesting that at least a portion of the XRP community is willing to experiment with DeFi yield opportunities.

What Does This Mean for XRP's DeFi Ambitions?

Removing friction may prove more consequential than any price rally for XRP's nascent DeFi ecosystem, sometimes referred to as XRPFi. The token climbed 6% earlier this week amid a 212% surge in retail buying volume, and exchange-traded fund inflows have stayed positive since their November launch. Yet much of that activity reflects directional bets on price appreciation rather than productive DeFi engagement.

The core barrier facing XRP's decentralized finance ambitions has been usability, not demand. Billions of dollars worth of tokens have been effectively stranded by the friction of multi-step onboarding processes that most holders never complete. By collapsing that friction into a single transaction, the Flare-Xaman integration targets what may be the largest pool of untapped DeFi liquidity in the XRP ecosystem. Infrastructure capable of converting passive holdings into productive capital could ultimately determine whether XRP's DeFi narrative matures beyond marketing into genuine on-chain utility.