Co-founder and Flare CEO Hugo Philion wants to create a system through which institutions can trade and borrow against XRP without full transparency of all operations on the blockchain. The new technology, called Confidential Compute, is expected to launch in the third quarter of 2026.
In an interview with crypto YouTuber Crypto Sensei, Philion explained that Flare is trying to close the main gap in XRPL: adding smart contracts, yield, and private computing to the network.
What Is FXRP and Why Is There So Much Attention Around It
FXRP is a version of XRP that operates within the Flare network, not in the XRP Ledger.
The FXRP rate is pegged to XRP, but within Flare the token gains access to smart contracts. This allows XRP to be used in lending protocols, trading pools, and yield strategies. XRP itself does not provide these opportunities.
After using FXRP it can be exchanged back to regular XRP at any time.
Flare tested the system for several years on the Songbird network, and the full launch of FAssets took place in September 2025.
What Changed After the FAssets v1.3 Update
Previously, converting XRP to FXRP was too cumbersome. Users had to go through several steps, and for banks and large companies, this process seemed inconvenient and overly complicated.
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After the v1.3 update, it is now enough to simply send XRP. The system does the rest itself and automatically issues FXRP without any additional actions from the user.
According to Philion, any exchange that supports tags for XRP can now automatically work with the issuance of FXRP, because the new scheme uses the native XRP Ledger infrastructure.
Flare’s documentation explains it like this:
“XRPL is the network where XRP is stored and moved. Flare is the network where XRP gains programmability.”
Flare also limits the maximum issuance volume of FXRP to reduce the risk of attacks on the system.
If liquidity providers stop maintaining a sufficient collateral level, the system will automatically liquidate the issued FXRP.
In the event of a serious failure or attack, Core Vault will be able to redirect funds to a regulated custodian associated with Ripple.
What Lending Instruments Is Flare Building Around XRP
Flare is working with Firelight and Morpho to add proper lending infrastructure to XRPL.
Firelight is responsible for liquid staking of XRP. A user can earn income by participating in the pool and simultaneously use the derivative token in other DeFi strategies.
Morpho is already focused on institutions. The protocol allows the creation of closed lending markets where loans are available only to verified participants, and the terms and types of collateral are set in advance.
In essence, this is already close to how lending works in traditional finance.
It is through such infrastructure that Flare is trying to reach banks and corporate treasuries that already use XRP for international transfers.
At the same time, Flare is partnering with Uphold to create simpler products for regular users with literally one-click management.
What Is Confidential Compute and Why Do Institutions Need It
Flare 2.0, or Flare Confidential Compute, is an attempt to add privacy to large operations on the blockchain.
Public networks create a problem for big players. If a bank, fund, or asset management company makes a large transaction, the market can see it in advance and start trading against that position through front-running.
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Confidential Compute tries to eliminate this problem through isolated computing zones based on Trusted Execution Environment (TEE).
Simply put, computations take place inside a closed environment that even the server operator cannot access.
As a result, institutions will be able to trade tokenized assets on XRPL, borrow against them, or launch regulated decentralized exchanges without full public disclosure of all operations.
Who Is Already Using Flare Infrastructure
In June 2025, the company VivoPower (ticker VVPR) placed $100 million in XRP through the FAssets infrastructure from Flare. The company transferred its corporate reserve to XRP to earn yield within the Flare ecosystem.
VivoPower CEO Kevin Chin said the company wants to build a simple scheme: earn yield, use it to buy even more XRP and repeat the cycle.
Among VivoPower investors are representatives of the Saudi Arabian royal family.
In addition, Flare teamed up with hardware wallet maker D’CENT to launch the XRP Alliance. Through it, more than 720,000 D’CENT users gained direct access to XRP yield vaults within Flare.
Now users can send XRP, issue FXRP and start earning yield with just two digital signatures in Flare Smart Accounts.
At the same time, the coins remain under the full control of the owner.
Interest in the system was high: more than 5,400 users joined the campaign, and the first earnXRP vault reached its limit of 25 million XRP in just one week.
