More than 2 billion XRP are sitting in wallets without meaningfully entering circulation. According to the report, that stash equals roughly 3.5% of XRP’s circulating supply and is worth about $3 billion. Most of it is held in Xaman wallets, where it has largely remained outside decentralized finance.
The obstacle is not simply market price. XRP holders who want DeFi exposure often have to install additional wallets, bridge assets to another chain, acquire gas tokens, and work through interfaces they do not already use. Many never make it past that point, leaving their holdings inactive.
A single workflow built on FAssets, Smart Accounts, and Xaman
Xaman said it has reached an agreement with the Flare blockchain to reduce that multi-step process to a single transaction. Users would be able to deposit XRP directly into a curated vault on Flare, while staying inside the Xaman wallet interface they already know.
Three parts make that work. FAssets create a trust-minimized representation of XRP on Flare, essentially a wrapped form that can interact with smart contracts. Flare Smart Accounts remove the need for users to manage a separate wallet on another chain, letting them authorize actions with their existing XRPL credentials. Xaman serves as the front end, embedding the process directly into the wallet used by a large share of XRP holders.
For the user, the experience is meant to look simple. In the background, the transaction includes detailed instructions: Flare’s Data Connector validates the request, while Smart Account controllers handle minting the wrapped asset, assigning capital to vault strategies, and distributing any yield that follows. Steps that usually require bridging, gas management, and multiple dApp interactions are folded into one flow.
Key control stays with users while vault managers handle deployment
In a statement to CoinDesk, Xaman founder Wietse Wind said the integration gives users new options directly inside a wallet they already know, while allowing them to keep full control over their keys and decisions. That point matters for XRP holders who may be willing to try on-chain strategies but not eager to maintain an entirely new wallet setup.
The vault strategies are managed by Upshift and curated by Clearstar, which oversee capital deployment and risk management. The report did not disclose yield targets. It said the strategies are built around familiar DeFi structures, including lending markets, collateralized positions, and structured products.
FXRP growth points to demand, but usability remains the main constraint
There are already signs that some XRP holders are willing to put assets to work. Flare’s existing wrapped XRP token, FXRP, has passed 100 million in minted supply, and more than 60 million are currently deployed across staking programs and structured products. That suggests at least part of the market is open to using XRP more actively instead of leaving it idle.
The timing also stands out. XRP rose 6% earlier this week, retail buying volume jumped 212%, and exchange-traded fund inflows have remained positive since their launch in November. Even so, most of that activity reflects price positioning. For the push sometimes described as XRPFi, the larger problem has been usability. If billions of dollars in XRP are effectively stranded by operational friction, cutting that friction may matter more than another move in price.