The XRP Ledger has crossed a significant adoption milestone, boasting more than 7 million active accounts. Now, a fresh development on the Flare Network could accelerate XRP’s role in decentralized finance (DeFi): the launch of the first stablecoin backed directly by XRP.
### Introducing the XRP-Backed Stablecoin on Flare
This new product is powered by Enosys Liquity V2, a reengineered version of the Liquity protocol adapted specifically for Flare. Unlike traditional stablecoins that use Ethereum as collateral, XRP now serves as the core collateral asset. This gives XRP holders a way to generate a stable asset without having to cash out from their long-term positions.
Holders of FXRP, stXRP, wFLR, and other tokenized assets can lock them into the system’s Collateralized Debt Positions (CDPs). In return, they mint stablecoins while still maintaining exposure to XRP—an attractive proposition for investors seeking liquidity without losing exposure.
### A DeFi Toolkit for XRP
The system relies on Flare’s Time Series Oracle (FTSO) for accurate pricing data. It also incorporates safety pools and locked asset loans to help maintain stability. On top of the functional benefits, users earn rFLR rewards, adding an incentive layer to the platform.
The appeal is clear: XRP investors unlock liquidity that can be used for payments, lending, trading, or even NFT purchases. As Flare CEO Hugo Philion explains, this model helps XRP integrate into the broader digital economy, transitioning it from merely a settlement asset to a more versatile financial tool.
### Institutional and Ecosystem Impact
The innovative system is already attracting attention from industry players. Everything Blockchain has begun using Flare’s XRP framework for treasury management, signaling that this model could resonate with both corporate and retail users.
### What This Means for XRP’s Future
For the XRP community, the timing of this launch is notable. The ledger’s adoption metrics are trending upward, and this new stablecoin offers holders additional incentives to stay engaged. Instead of selling XRP to access liquidity, investors can now recycle their holdings into DeFi strategies. This shift has the potential to make XRP a more central player in stablecoin settlement and decentralized markets.
Taken together, the milestone of over 7 million active accounts and the arrival of an XRP-backed stablecoin signify more than incremental progress. They mark a turning point where XRP evolves from a transactional token into a backbone of decentralized financial activity.
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*The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.*
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**Author:**
Alexander Zdravkov, Reporter at Coindoo
Alexander is passionate about uncovering the logic behind complex topics. Fluent in German and with over three years of experience in the crypto space, he skillfully identifies emerging trends in digital currencies. Whether providing in-depth analysis or daily reports, his deep understanding and enthusiasm make him a valuable member of the Coindoo team.
https://coindoo.com/xrp-ledger-surpasses-7-million-accounts-as-flare-launches-first-xrp-backed-stablecoin/
