A new XRP-backed stablecoin has gone live on Flare, marking a major milestone for the network and for XRP holders seeking decentralized borrowing options.
The launch, powered by Enosys Loans and built on the battle-tested Liquity V2 framework, drew more than 1 million newly minted CDP tokens within hours.
The rollout introduces the first trustless, overcollateralized stablecoin backed by XRP derivatives on Flare.
It also gives users an option to mint debt using FXRP or wrapped FLR while setting their own borrowing rate.
The protocol reached $3.5 million in total value locked overnight, with 1.5 million CDP issued, including $1 million backed by XRP, according to early platform data.
What Happened
Enosys Loans launched the first XRP-backed decentralized stablecoin on Flare, enabling users to mint CDP tokens against FXRP or WFLR collateral.
The system is based on the Liquity V2 design, a CDP engine known for maintaining a stablecoin peg through market stress.
Enosys’ version preserves core Liquity principles such as immutability and automated redemptions while letting borrowers choose their own interest rate.
Lower interest rates face a higher chance of redemption if the stablecoin trades below $1.
Launch parameters include a $4 million mint cap for FXRP and $1 million for WFLR, along with a minimum $500 CDP per position, according to Flare’s documentation.
Within hours, more than 1 million CDP were minted, a figure that rose to 1.5 million by the next day as TVL jumped to $3.5 million.
Enosys plans to add support for staked XRP (stXRP) next, allowing holders to earn staking rewards while also using the asset as collateral.
The protocol relies on Flare’s decentralized FTSO oracle for price feeds, reducing reliance on centralized data sources.
Read also: https://yellow.com/news/revolut-partners-with-trust-wallet-for-instant-eu-crypto-purchases
Why It Matters
This is the first decentralized stablecoin backed by XRP collateral on any blockchain.
That expands what XRP holders can do with their assets without selling them, including borrowing, liquidity provision, and yield generation.
It also activates new demand for Flare’s FAssets system and deepens the role of stXRP in the growing DeFi ecosystem.
Flare positions the product as a foundation for stable on-chain liquidity and a key step toward broader integrations across its network.
The rapid uptake suggests early market appetite for XRP-collateralized lending and decentralized stable assets with automated peg-defense mechanics.
Read next: FalconX Acquisition of 21Shares Strengthens XRP TOXR ETF Infrastructure