Flare Introduces XRP-Backed Stablecoin via Enosys Protocol

• Lyla Velez
• September 19, 2025
• Adoption
• 0 Comments

Flare Network has launched the first XRP-backed stablecoin through the Enosys protocol, aiming to expand XRP’s utility in DeFi. This move, announced recently, marks a significant step in increasing the relevance of XRP and Flare within decentralized markets.

Flare’s launch of the XRP-backed stablecoin signals a broader application for XRP in decentralized finance. By integrating with Enosys, Flare aims to unlock new yield strategies and expand XRP’s utility significantly.

The collaboration involves Flare Network and Enosys, the development group implementing overcollateralized XRP-backed stablecoins. Flare’s CEO, Hugo Philion, emphasized the mission to transform XRP into a yield-bearing token through innovative uses in DeFi.

“Flare’s mission is to unlock billions in XRP liquidity and transform the asset into a yield-bearing token.” – Hugo Philion, CEO, Flare

Financial and market impacts include a $100 million commitment by VivoPower, enhancing the lending and stablecoin minting operations. Retail users gain access via Uphold’s collaboration, facilitating exchange and swap services for the XRP-backed stablecoin.

The initiative allows XRP holders to engage actively in DeFi, with protocol rewards and TVL shifting as deposits increase. However, specific new TVL numbers remain undisclosed.

Insights into potential outcomes suggest that such a move could set a precedent for incorporating other cryptocurrencies into similar financial applications. The structure borrows from successful models, ensuring stability through overcollateralized practices. Regulatory compliance appears favorable, focusing on non-custodial solutions. These developments support the broader goal of increasing XRP liquidity and yield potential within decentralized environments.