Layer-1 chain Flare has announced that FXRP now works as collateral on Derive, letting $XRP holders trade on-chain options and perpetual futures from their own wallets.
According to a press release shared with CryptoPotato, holders can mint FXRP through Flare’s FAssets system, deposit it on Derive, and run positions from a single Portfolio Margin V2 account, which covers hedging, premium generation, and directional trades on the same collateral.
Flare said $XRP holders previously had limited ways to hedge a position or generate options premium without relying on centralized exchanges or custodians.
Options Cash Settle in $USDC
Derive’s $XRP options are cash-settled in $USDC. When a contract expires in the money, the difference is paid out in $USDC, and the FXRP stays posted as collateral, so settlement moves no underlying $XRP. Sellers need enough $USDC on hand to cover that payout, and they carry margin and liquidation risk on the position.
Derive is built on infrastructure from Lyra Finance and runs options, perpetual futures, and spot trading through one portfolio margin system. It traded more 30-day notional options volume than any other on-chain venue tracked by DefiLlama, which puts its total value locked near $118 million.
“Options are often the last major market to develop around an asset, and $XRP has been waiting for the infrastructure,” said Nick Forster, Co-Founder and Chief Executive Officer of Derive. FXRP gives one of crypto’s largest holder bases “a credible path on-chain,” he stated.
XRPFi Stack Adds Derivatives
FAssets represents $XRP on Flare through an overcollateralized system run by independent agents and the network’s data oracles, which pull cross-chain and real-world data through the Flare Time Series Oracle and the Flare Data Connector.
FXRP reached mainnet in September 2025, capped at 5 million tokens for its first week while Flare rolled out incentives, and the network said that the cap was filled within four hours. More than 155 million FXRP had been minted within seven months.
That supply already backs lending, borrowing, and yield tokenization. As CryptoPotato reported, FXRP deployed across DeFi applications rose from 82 million to 144 million since February, with more than 40 million $XRP earned through Flare’s Smart Accounts across nearly 24,000 accounts. Flare has since listed an FXRP/$USDC spot pair on Hyperliquid that lets the token move across chains.
“$XRP has one of the most committed long-term holder bases in crypto, and until now they’ve had no permissionless options market to generate yield or hedge against their position,” said DeFi analyst Will Procheska.