Flare Network and Enosys launched the first XRP-backed stablecoin using Liquity V2.Flare Network and Enosys launched the first XRP-backed stablecoin using Liquity V2.

First XRP-backed stablecoin launches on Flare

4 min read

The first-ever stablecoin backed by XRP has been announced by Flare Network, created in collaboration with Enosys Loans, to be powered by Liquity V2. This is a huge milestone for the XRP ecosystem, further cementing its position in DeFi and driving utility beyond remittances.

Under the new system, XRP holders can borrow stablecoins without selling their tokens. Its model operates under a Collateralized Debt Position (CDP) scheme, wherein users lock FXRP (wrapped XRP) or Flare’s native token wFLR as collateral. In return, they create a stablecoin class of cryptocurrency tied closely to the dollar.

The model would allow investors to maintain long-term XRP exposure and enjoy liquidity for everyday purchases. In this way, they can use stablecoins to trade, lend, or make payments within DeFi.

Flare’s Time Series Oracle (FTSO) feeds the price for collateral and stablecoins. This decentralized oracle provides transparency and stability, guaranteeing the smooth functioning of the market.

The borrowing system is also accompanied by a stability pool, which keeps track of the stablecoin peg and covers liquidations. Users participating in the pool receive rewards from fees, liquidations, and interest payments. This incentive forms a self-regulating equilibrium between risk and rewards in the network.

After launch, collateral is issued with FXRP and wFLR, which will soon change and support stXRP, adding to collateral flexibility. That means token holders can stake their XRP for yield, yet still use those staked assets as collateral for stablecoin loans.

Users gain rewards and utility

Enosys Loans goes beyond creating a stablecoin by introducing a broader incentive model within the Flare ecosystem. Borrowers and stability providers can earn reward Flare tokens (rFLR), which adds another layer of motivation for users to engage with and adopt the platform.

Another distinctive feature is the ability for borrowers to set their own borrowing rate, but this flexibility comes with trade-offs. Loans taken at lower rates carry greater risk if the stablecoin loses its peg, since they are the first to be redeemed during correction events. This design balances individual choice with the need to maintain overall stability in the system.

Everything Blockchain, a U.S. company, has already used Flare’s XRP DeFi framework to handle its crypto treasury. This early adoption is a strong vote of confidence for the platform and its capabilities to support real-world use cases.

XRP-backed stablecoin unlocks new DeFi use cases

The launch comes at a time of significant growth for the XRP Ledger, with data from XRPScan showing that the number of active accounts has recently surpassed 7 million, a clear indication of rising adoption and expanding activity across the network.

XRP is primarily a payment token and bridge currency used in cross-border transactions. An XRP-denominated stablecoin provides new ways for holders to interact with the financial system, which is exactly what comes into sight when using the coin.

This move now makes XRP available to be used not only as a payments asset but also as collateral for DeFi markets that run seamlessly worldwide. And finally, it solidifies a bridge between XRPL and Flare ecosystems, expanding the flexibility of investment in XRP for investors, developers, and institutions.

The innovation also tackles one of the continual issues in crypto markets, selling tokens to obtain liquidity. Instead of selling, holders could borrow against their XRP, spend or invest stablecoins, and still profit from any rises in price in the underlying tokens.

Enosys Loans is a prototype of the first on-chain debt protocol, backed by XRP. Its structure is built on the stability of Liquity V2 with the decentralization from Flare, bringing about a secure, efficient, and incentivizing borrowing system.

If it finds adoption, XRP-backed stablecoins might play a part in expanding the use of digital assets in finance, trade, and Dapps. The achievement also paves the way to experimentation with Flare’s interoperability framework, bringing XRP into other ecosystems.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.

Market Opportunity
XRP Logo
XRP Price(XRP)
$1.301
$1.301$1.301
+0.35%
USD
XRP (XRP) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Is Putnam Global Technology A (PGTAX) a strong mutual fund pick right now?

Is Putnam Global Technology A (PGTAX) a strong mutual fund pick right now?

The post Is Putnam Global Technology A (PGTAX) a strong mutual fund pick right now? appeared on BitcoinEthereumNews.com. On the lookout for a Sector – Tech fund? Starting with Putnam Global Technology A (PGTAX – Free Report) should not be a possibility at this time. PGTAX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance. Objective We note that PGTAX is a Sector – Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector – Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversified approach. History of fund/manager Putnam Funds is based in Canton, MA, and is the manager of PGTAX. The Putnam Global Technology A made its debut in January of 2009 and PGTAX has managed to accumulate roughly $650.01 million in assets, as of the most recently available information. The fund is currently managed by Di Yao who has been in charge of the fund since December of 2012. Performance Obviously, what investors are looking for in these funds is strong performance relative to their peers. PGTAX has a 5-year annualized total return of 14.46%, and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 27.02%, which places it in the middle third during this time-frame. It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower. When looking at a fund’s performance, it…
Share
BitcoinEthereumNews2025/09/18 04:05
“Vibes Should Match Substance”: Vitalik on Fake Ethereum Connections

“Vibes Should Match Substance”: Vitalik on Fake Ethereum Connections

Vitalik Buterin criticized L2s that use optimistic bridges without adding meaningful technical innovation. Ethereum’s base layer is scaling, reducing the need for
Share
LiveBitcoinNews2026/02/06 11:30
Why Bitcoin Crashed Below $69,000 — Causes & Outlook

Why Bitcoin Crashed Below $69,000 — Causes & Outlook

Cryptsy - Latest Cryptocurrency News and Predictions Cryptsy - Latest Cryptocurrency News and Predictions - Experts in Crypto Casinos Bitcoin crash explained:
Share
Cryptsy2026/02/06 11:20