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XRP Holders Can Trade Options Using Flare's FXRP as Collateral

Created at 13 Aug · 1:07 PM1 source↑ Market-relevant
IN SHORT

XRP holders can now leverage Flare's FXRP token as collateral for options and perpetual futures trading on the decentralized exchange Derive. This integration allows users to trade directly from their wallets, hedging, earning premiums, or speculating on XRP's price movements.

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Key Numbers

V2Derive Portfolio Margin account type

Who's Involved

Flare
Announced the integration of FXRP for XRP options and perpetual futures trading.
Derive
Decentralized exchange now accepting FXRP as collateral for XRP derivatives.
Nick Forster
Founder and CEO of Derive.
Sentora
DeFi risk management firm whose vault now accepts FXRP.
Morpho
Ethereum-based lending protocol where FXRP is approved as collateral.
XRP Holders Can Trade Options Using Flare's FXRP as Collateral

↳ Why This Matters

This integration provides XRP holders with new on-chain tools for hedging, speculation, and income generation, enhancing the utility of their holdings within the decentralized finance ecosystem and bringing sophisticated trading options to a major cryptocurrency.

Key facts

  • Flare's FXRP can now be used as collateral for XRP options and perpetual futures on Derive.
  • Users can trade derivatives directly from their own wallets, bypassing centralized exchanges.
  • Options are settled in USDC, introducing margin and liquidation risks for traders.
  • FXRP has also been approved as collateral for the RLUSD Main vault on the Morpho lending protocol.

    • XRP holders can now utilize Flare's FXRP token as collateral for trading options and perpetual futures on the decentralized exchange Derive, according to an announcement by Flare. This development allows users to engage in derivative trading directly from their personal wallets, eliminating the need for centralized exchanges.

    FXRP is minted by users through Flare's FAssets bridge, which converts assets like XRP into ERC-20 tokens on the Flare network. These tokens can then be deposited into a Derive Portfolio Margin V2 account for trading. Options provide the right to buy or sell an asset at a specified price, while perpetual futures enable bets on price movements without expiration dates. These products offer XRP holders avenues for hedging against potential losses, generating income by selling options, or speculating on price changes.

    Nick Forster, founder and CEO of Derive, stated that options markets are often the final piece of infrastructure to develop around an asset, and XRP has been awaiting this development. He added that FXRP provides a credible on-chain path for a large XRP holder base, enabling sophisticated trading and hedging strategies comparable to those available for other major assets.

    Derive's XRP options are settled in USDC, a stablecoin, rather than XRP. If an option expires profitably, Derive pays the difference in USDC, while the FXRP collateral remains posted. Sellers of options must maintain sufficient USDC to cover settlement and required margins to avoid liquidation. This integration expands FXRP's utility within decentralized finance. Earlier in the month, FXRP was approved as collateral in Sentora's RLUSD Main vault on the Morpho lending protocol, allowing XRP holders to bridge FXRP to Ethereum and borrow Ripple's RLUSD stablecoin without selling their XRP.

    Frequently asked questions

    FXRP is a token representing XRP on the Flare blockchain, minted through Flare's FAssets bridge.

    XRP holders can use FXRP as collateral on Derive to trade options and perpetual futures directly from their wallets.

    Options are settled in USDC, a dollar-pegged stablecoin, rather than XRP.

    Traders face margin and liquidation risks if they cannot cover settlement or maintain required margins.

    What Happens Next

    01Further integration of FXRP into other DeFi protocols is anticipated.
    02Development of additional derivative products for XRP holders may occur.

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    Cadence
    CME Headlines
    • Product Modification Summary: Amendments to the Strike Price Listing Schedule for all Hourly Event Contract Swaps on Ether — Effective August 10, 2026
      6 Aug · 7:45 PM

    How It Developed

    Derive now accepts Flare's FXRP as collateral for XRP options and perpetual futures.
    Users can trade through their own wallets without relying on a centralized exchange.
    Options settle in USDC, exposing traders to margin and liquidation risks.
    FXRP was approved as collateral in DeFi risk management firm Sentora's RLUSD Main vault on the Ethereum-based lending protocol Morpho.

    Sources

    T1
    XRP Holders Can Now Trade Options Using Flare’s FXRP as CollateralDecrypt

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