Philion Says Flare is Transforming XRP to the Pre-eminent Tokenization Platform

Hugo Philion, CEO of Flare Labs, believes Flare can help move XRPL beyond its focus on payments and turn it into a leading platform for tokenization.

Philion suggested that Flare’s technology allows XRP to participate in decentralized finance at an institutional level. He added that Flare can help XRPL expand into tokenization by providing privacy tools and secure computing features.

Key Points

• Flare Labs CEO Hugo Philion has suggested that Flare may be helping transform the XRP Ledger beyond just a payment network to a tokenization platform.
• Philion also believes Flare is providing the platform for XRP to engage in DeFi at an institutional level.
• The XRPL’s major ties to Flare lie in the FXRP system, which allows XRP holders to utilize their XRP tokens in a secure DeFi setup.
• FXRP launched in September 2025 and has since attracted over 97 million XRP tokens, with $40 million staked on Firelight.

Flare Transforming XRPL to Tokenization Platform

Philion shared his recent comments in a post on X. According to him, Flare’s technology already allows XRP to take part in decentralized finance at a level that institutions can use. He also explained that Flare can support XRPL’s growth into tokenization by adding privacy tools and secure computing features.

Flares tech is:

1) Already bringing XRP to institutional capable DeFi.

2) Can help transform XRPL beyond a payments powerhouse into the preeminent tokenisation platform through privacy and confidential compute.

I see XRPL as the asset issuance layer and Flare as the compute… https://t.co/8VT60ctYzU

— Hugo Philion (@HugoPhilion) February 12, 2026

For context, the XRP Ledger has continued to grow its tokenization footprint, boasting over $1 billion in tokenized commodities. The XRPL also stands as the fourth-largest network in terms of represented RWA, surpassing Ethereum. 

Speaking further, Philion implied that the relationship between the XRPL and Flare remains mutually beneficial to both ecosystems. He stressed that XRPL is the layer where assets get issued, while Flare acts as the compute layer that adds smart features and flexibility. 

For context, the Flare Labs CEO made these comments after a community member suggested that Flare could help turn Ripple into a trillion-dollar company. The idea followed earlier remarks from Ripple’s CEO Brad Garlinghouse about the company’s potential to become the first trillion-dollar crypto firm.

FAssets and FXRP Bringing XRP Into DeFi

For the uninitiated, Flare’s primary link to XRPL comes through its FAssets system and the FXRP token. This setup lets XRP holders use their tokens in decentralized finance through a trust-minimized, over-collateralized bridge. 

In this system, users lock their XRP on XRPL and mint FXRP on Flare’s EVM-compatible Layer 1 network. Notably, XRPL maintains its role as the main settlement layer, while Flare provides the smart contract features.

Flare calls itself a utility layer for XRPFi. With this model, users can earn yield, lend, trade, and move assets across chains without selling their XRP or taking it off XRPL.

The project launched FAssets on the mainnet last September, after testing on the Songbird canary network. The team set the first minting limit at 5 million FXRP, and users filled the amount within five hours, leading to an increase in the cap. Today, FXRP hosts 97.1 million XRP tokens.

FXRP Growth Targets and Rising Adoption

Meanwhile, Philion set a goal of seeing 5 billion XRP represented as FXRP on Flare by mid-2026. This figure would make up 8.2% of XRP’s current circulating supply of 60.9 billion tokens and would set up Flare as the largest DeFi layer connected to the XRPL.

Interestingly, Flare also launched the Firelight protocol in December 2025. For context, Firelight adds liquid staking for XRP within the network. Users can stake their assets while still using them in Flare’s DeFi ecosystem, which improves flexibility and capital use.

On February 5, 2026, Flare again expanded its reach by announcing a stronger partnership with Hex Trust. The partnership gives institutional clients secure custodial access to FXRP minting and redemption, as well as FLR token staking. This development introduced FXRP to large institutions, not just retail investors.