Firelight introduces staking and stXRP TVL rises above $55 million – XRP owners are lining up
- XRP holders used Firelight Finance staking and deposited 25 million FXRP worth around $55 million within a few hours.
- Phase two of Firelight aims to increase DeFi adoption, with stXRP liquidity and backing rewards slated for 2026.
XRP holders have been quick to adopt Firelight Finance’s recently launched staking protocol on the Flare network. You can deposit FXRP, Flare’s “wrapped” version of XRP, and receive stXRP in return at a one-to-one ratio. In just a few hours, sales reached 25 million FXRP, which is around $55 million.
Firelight Launch Vault Full. Ignition SUCCESS
25M staked (~$55M TVL) within hours, proving massive XRP staking demand.
Vault capacity continues to scale.
Stay alert to what’s coming from @FlareNetworks & @Firelightfi pic.twitter.com/h07zESHHkf
— Flare
(@FlareNetworks) December 4, 2025
stXRP serves as a liquid token that can circulate through the Flare network, which includes decentralized exchanges, lending platforms, and liquidity pools. Investors will be rewarded for their commitment before phase two, and staking rewards are scheduled to begin in 2026, after DeFi protocols adopt the insurance model and start paying coverage fees.
Unlike previous Ethereum efforts, the protocol’s design adapts restaking concepts to XRP. Firelight plans to repurpose capital to secure assets while keeping costs in mind, Chief Strategy Officer Connor Sullivan said:
“We are focusing on assets with a structurally lower cost of capital, like XRP, rather than trying to outperform ETH DeFi returns.”
Firelight is targeting phase two with expanded protocol goals
Sullivan highlighted Firelight’s focused DeFi coverage, which targets top-tier protocols where risk modeling is critical. The incentives are based on short, transparent point programs linked to real participation and economic value. Firelight is a Sentora incubator that grew out of IntoTheBlock and Trident Digital and is supported by Ripple and Flare on infrastructure and integration.
Sentora has extensive experience with major DeFi protocols and manages billions of dollars in total value secured through risk strategies and liquidity programs. Sullivan explains:
“Our customers are institutions looking to generate returns from DeFi, and one of the biggest hurdles for them is the lack of this special coverage primitive. DeFi coverage is an essential feature, not a nice-to-have.”
Firelight is now in discussions with various DeFi projects about adopting the coverage system. Participating protocols pay fees for coverage, and a portion of the fees go to stakers. The platform can integrate with any protocol, regardless of the underlying blockchain, not limited to XRP or Flare networks.
The claims process for Covered Incidents requires submission to an appointed agent and review by an independent panel. Once approved, payouts are automatically executed via onchain contracts. The Firelight team is currently focused on building liquidity for the cover module, with full functionality and staking rewards planned for phase two in early 2026.
Institutional adoption of XRP was further strengthened in 2025 when Virtune launched a physically collateralized XRP ETP on Deutsche Börse Xetra. It offers regulated access for private and institutional investors in Germany in accordance with EU and BaFin regulations. The high investor participation combined with the availability of regulated ETPs show the growing trust and support for the XRP system.
No Comments