XRP Makes a Move Into DeFi—Without Selling Your Holdings
If you’ve been holding XRP and didn’t want to sell it just to tap into decentralized finance, there might be a way around that now. Moonwell, a lending platform on Coinbase’s Base blockchain, has started supporting cbXRP—a wrapped version of XRP minted by Coinbase. This lets users borrow against their XRP without actually letting go of it.
The idea is simple: you lock up cbXRP as collateral and take out loans in USD Coin (USDC). No need to offload your XRP. It’s not revolutionary, but it’s practical—especially for people who still believe in XRP’s long-term value but want liquidity now.
Why This Matters for XRP Holders
Base is an Ethereum Layer 2, so this move effectively bridges XRP (which isn’t natively compatible with Ethereum) to a DeFi ecosystem where it can actually be used. Before, if you wanted to borrow against XRP, your options were limited. Now, there’s a path—though it’s still early.
Moonwell is the first lending market on Base to offer cbXRP, so liquidity might be thin at first. But if this catches on, it could open doors for more XRP-based DeFi products.
Meanwhile, Flare Network—a blockchain focused on interoperability—is also pushing XRP further into DeFi. They’ve introduced FXRP, a decentralized, non-custodial version of XRP that maintains a 1:1 peg. Flare’s been gaining traction, with its Total Value Locked (TVL) jumping from $38 million in April to nearly $145 million by mid-June.
Institutional Interest Is Growing
Flare recently secured a $100 million liquidity commitment from VivoPower, a company mostly known for sustainable energy solutions but now dipping into digital finance. The money’s meant to boost XRP-focused DeFi projects, particularly around yield generation and institutional use cases.
It’s a sign that bigger players are starting to take XRP seriously—not just as a speculative asset, but as something that can actually be used in decentralized finance. Flare’s also rolled out liquid staking for FXRP, letting users earn stXRP (similar to how Lido handles Ethereum staking).
None of this means XRP is suddenly the backbone of DeFi. But it does suggest that, slowly, the token is finding ways to be useful beyond just sitting in wallets. Whether that leads to anything substantial—well, we’ll have to wait and see.
