XRP holders can now use Flare’s FXRP as collateral to trade options and perpetual futures on decentralized exchange Derive, according to an announcement from Flare on Thursday.
Flare said users mint FXRP through its FAssets bridge, which converts assets such as Bitcoin, XRP, and Dogecoin into ERC-20 tokens on the Flare network. After that, users can deposit FXRP into a Derive Portfolio Margin V2 account and trade derivatives directly from their own wallets.
Options give traders the right to buy or sell an asset at a set price. Perpetual futures let them take positions on price moves without an expiration date. For XRP holders, that opens the door to hedging losses, collecting premium by selling options, or speculating on the token’s price.
Nick Forster, founder and CEO of Derive, said in a statement: 「Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure. FXRP gives one of crypto’s largest holder bases a credible path onchain, and adding Derive’s options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.」
Derive’s XRP options settle in USDC, not XRP. If an option expires in profit, Derive pays the difference in the dollar-pegged stablecoin while the FXRP remains posted as collateral. Options sellers must hold enough USDC to cover settlement and keep required margin levels in place, or they risk liquidation.
The integration expands FXRP’s role in decentralized finance. Earlier this month, Flare said, FXRP was approved as collateral in DeFi risk management firm Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho. That setup allows XRP holders to bridge FXRP to Ethereum and borrow Ripple’s RLUSD stablecoin without selling their XRP.