Flare Network CEO Hugo Philion has shed more insight on Firelight, its liquid staking protocol designed to expand XRP holders’ access to DeFi opportunities.
Speaking in an interview on the Thinking Crypto podcast, Philion explained that the initiative allows users to deposit their XRP into Firelight and mint a staked version of the asset. Specifically, once XRP is deposited into Firelight, users can mint liquid staking token stXRP.
Benefit of stXRP
According to Philion, this liquid staking token functions similarly to FXRP, Flare’s wrapped version of XRP, which is used in decentralized finance (DeFi). However, he emphasized that stXRP offers the dual advantage of allowing users to earn yield while also accessing loans without the need to sell their staked XRP.
The initiative is part of the team’s commitment to transform XRP into a yield-bearing asset. Flare has added XRP as an F-asset, enabling holders to wrap their XRP tokens into FXRP and participate in DeFi opportunities.
Earlier this year, the company elevated this ambition by announcing plans to offer low-risk staking options for XRP holders through Firelight. Last month, Philion disclosed that Firelight could help XRP holders earn up to 7% in yields.
The Firelight system is built to stay non-custodial and decentralized. These features will ensure users maintain control of their assets and avoid the risks of centralized platforms.
The power of liquid staking:
Your XRP earns yield, and keeps working for you across DeFi at the same time. pic.twitter.com/CbdrwlmtWD
— Flare ☀️ (@FlareNetworks) September 21, 2025
Potential Impact of DeFi on XRP Price
Philion expects the protocol to gain significant traction and take XRP to new heights. Meanwhile, several projects have been pushing to expand XRP DeFi opportunities.
Earlier this week, Axelar Network introduced a liquid staking solution for XRP holders via its mXRP token, allowing them to earn annual returns of up to 10%.
As Flare and other crypto projects expand DeFi opportunities for XRP, some community members believe these developments could significantly influence the token’s price.
Dom Kwok, the co-founder of EasyA, speculated that a true DeFi breakout for XRP could lift its price to roughly four figures. Other catalysts supporting Kwok’s bold prediction include increased retail and institutional participation, upcoming XRP-focused ETFs, and stablecoin payments.
In the meantime, institutional clients have shown interest in Firelight. Nasdaq-listed energy firm VivoPower has already committed $100 million worth of XRP in support of the liquid staking initiative. Leading cryptocurrency exchange Uphold has also partnered with Flare to provide retail access to FXRP.
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