Flare Co-Founder Says XRP DeFi Growth Hinges on Institutional Participation

Flare co-founder Hugo Philion said institutional participation will shape the scale of XRP use in decentralized finance on Flare, as FXRP’s first year on mainnet showed demand for yield but fell short of his expectations.

FXRP is Flare’s representation of XRP. Philion said its first year on mainnet proved there was demand for XRP yield, though the project fell well short of a larger amount he had previously predicted.

The institutional participants discussed include exchanges and digital asset treasury companies (DATs), which hold XRP in large volumes. Philion said an exchange could match the total amount of FXRP currently minted in a single transaction. “We can do the whole amount that’s minted currently all in one clip with an exchange,” he said.

Philion attributed the slower institutional timeline to the time required to build trust and relationships with large entities. He described the project as “pretty much there.”

The discussion adds context to XRP yield trade-offs.