First-ever modular lending for XRP debuts on Flare via Morpho and Mystic

Flare launches first modular lending markets for XRP via Morpho, enabling permissionless FXRP lending.

Flare today announced the launch of the first modular lending markets for XRP on the network through an integration with Morpho, a modular lending protocol with more than $10 billion in total value locked across EVM-compatible blockchains. The deployment introduces permissionless lending for FXRP on Flare, with Mystic serving as the front-end interface for Morpho on Flare to simplify access for users and curators alike.

The integration brings modular lending to Flare for the first time, marking a major milestone in the network’s XRPFi vision to transform XRP from a dormant asset into a productive source of yield, credit, and composable strategy.

Flare’s role in expanding DeFi utility for XRP holders

Historically, XRP holders have had limited access to advanced DeFi strategies. Flare has been building the foundations of XRPFi through infrastructure such as FXRP, staking via Firelight, spot trading through Hyperliquid, and yield tokenization with Spectra. The addition of Morpho and Mystic extends this framework by enabling lending and borrowing use cases that retain XRP on the XRP Ledger while unlocking onchain utility.

With modular lending now live on Flare, FXRP holders can deposit assets into curated, yield-bearing vaults, use FXRP as collateral to borrow stablecoins or other supported assets, and integrate lending positions into structured strategies. These capabilities allow users to loop capital across staking, lending, and borrowing within a single ecosystem.

Morpho’s modular design differs from traditional pool-based lending protocols by isolating risk at the individual market level. Each market supports a single collateral and loan asset, with parameters such as loan-to-value ratios set at creation. Markets can be launched permissionlessly, while curated vaults allocate capital across selected markets based on defined risk and yield objectives.

Independent vaults for FXRP, FLR, and USDT0

The integration also extends Flare’s curator-led model to the lending layer. Independent curators design and manage modular lending vaults, selecting markets and configuring allocations without relying on protocol-wide governance. At launch, curators including Clearstar are offering vaults backed by assets such as FXRP, FLR, and USDT0.

To make Morpho’s infrastructure accessible on Flare, the network has been added to Mystic, a dedicated front-end that enables users to discover curated vaults, deposit assets to earn yield, and borrow against supported collateral. Mystic serves as the primary access point at launch, with additional interfaces like Morpho main app expected over time.

The launch reflects Flare’s broader strategy to support multiple lending models and give users greater choice in how they participate in onchain finance. By combining modular, curator-led lending with existing DeFi primitives, Flare continues to promote its vision of a composable XRPFi ecosystem.

Flare Network is a Layer 1 blockchain that enables digital assets like XRP to participate in decentralized finance applications. Through its smart contract infrastructure, Flare unlocks yield-generating opportunities for traditionally non-yielding assets while maintaining institutional-grade security and compliance standards.