Flare Network has unveiled the first XRP-backed stablecoin, built on the Enosys Liquity V2 protocol, marking a major step in boosting XRP’s utility. This innovation allows XRP holders to mint stablecoins and earn rewards on the Flare ecosystem, all while keeping their original holdings intact. The launch also coincides with a key milestone for the XRP Ledger, which now has more than 7 million accounts.
Enosys Brings Liquity V2 to Flare with XRP Stablecoin
The upgrade introduces greater liquidity for XRP and expands its use in decentralized finance. Initially, the stablecoin will be pegged to FXRP with Wrapped Flare (wFLR) as collateral, later expanding to staked XRP (stXRP) and other tokenized assets (FAssets). The system is based on Collateralized Debt Positions (CDPs), allowing users to lock their assets and mint stablecoins.
Enosys Liquity V2 integrates features like decentralized pricing through Flare’s oracle, the Flare Time Series Oracle (FTSO), alongside safety funds and blockchain-based price feeds. Originally designed for Ethereum collateral, Liquity has now been adapted by Enosys to support XRP, paving the way for broader adoption in DeFi.
XRP Stablecoin Creates More Value and Adoption
By leveraging this model, Flare and Enosys have introduced the first onchain debt protocol that uses XRP as collateral. This opens up new possibilities for XRP holders, who can now generate stablecoins instead of liquidating their tokens. The stablecoins can be used for payments, lending, trading, earning interest, or even purchasing NFTs.
Flare CEO Hugo Philion emphasized that this stablecoin supports XRP’s growing role in the digital economy, unlocking liquidity while still preserving long-term XRP exposure. Participants in the system can also earn Flare rewards (rFLR), further incentivizing adoption.
The launch comes amid growing activity on the XRP Ledger, which recently surpassed 7 million accounts, signaling broader adoption and strengthening XRP’s position as a key player in global settlement and DeFi integration.
