Throughout a latest episode of “XRP in a Minute” hosted by Ripple, Flare co-founder and CEO Hugo Philion responded to the query “Can XRP generate yield?” by highlighting alternatives in DeFi.
XRP is well-known for its funds capabilities, however in response to Flare co-founder and CEO Hugo Philion, it has extra to supply. Philion burdened Flare’s purpose of turning XRP right into a collateral asset as an alternative of merely a transaction cost asset on the XRP ledger.
Philion answered within the affirmative to the query of whether or not XRP can be utilized in methods involving lending and vaults. The Flare CEO highlighted how XRP holders can take part in such methods involving lending and vaults.
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One of many key alternatives, Philion says, is utilizing XRP as collateral for yield methods. In response to the Flare CEO, borrowing towards XRP opens the door to a wide range of yield-generating methods. “So by taking your XRP and turning it right into a collateral asset, you may then get yield via borrowing after which relending out these {dollars},” Philion mentioned.
XRP utility continues to develop
The dialogue comes as XRP’s utility continues to develop, each straight and not directly, with the XRP Ledger function set growing, notably for institutional DeFi use instances together with tokenized real-world belongings (RWAs), stablecoins, and decentralized liquidity.
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The XRP Ledger completed Q1 2026 with a real-world asset (RWA) market valuation of $2.25 billion (about 124.1% improve quarterly), making it the seventh largest community by RWA market cap. At present, the XRP Ledger has moved as much as fourth spot, in response to a latest Messari Q1 2026 report.
At present (excluding stablecoins), 18 distributed RWAs and 312 represented RWAs are tracked by RWA.xyz on the XRPL, although extra integrations are deliberate.
In Might 2026, the XRPL was house to a landmark settlement transaction, connecting it to interbank settlement rails. This was the primary tokenized U.S. treasury settlement throughout borders and banks in close to actual time exterior conventional banking home windows.