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Flare Networks is set to unlock new yield opportunities for XRP holders through staking.
Co-founder Hugo Philion tweeted about this development on Monday, revealing that Flare’s institutional associate is building XRP staking. This would allow users to secure networks and services across multiple ecosystems. In return for their participation, users will earn tokens.
Philion emphasized that staking is a low-risk endeavor, noting that validators “rarely mess up.” He also stated that participating in staking is a reliable way for XRP holders to generate passive income and expand their holdings beyond the XRP Ledger (XRPL).
The announcement has garnered attention within the community. However, Zach Rector raised a concern about the timing of Flare’s DeFi offerings, particularly with the upcoming programmability on XRPL.
Flare Has Edge Over Upcoming XRPL Programmability
Philion responded by addressing the limitations of XRPL’s programmability compared to Flare’s more comprehensive features. According to him, XRPL’s programmability will have rigid boundaries.
In contrast, Flare’s ecosystem provides full Ethereum Virtual Machine (EVM) compatibility, protocol-managed wallets, decentralized data, and off-chain computing. These features enable broader and more flexible use cases.
While XRP holders are accustomed to the XRP Ledger, Flare presents an additional layer of functionality with its support for other major digital assets, such as Bitcoin (BTC), Dogecoin (DOGE), and Wrapped Ether (wETH).
“Flare is highly complementary to XRPL here,” Philion wrote.
XRPL programmability will be great but it will be limited in scope (ie fairly rigid boundaries on what people can build/do).
On Flare there is full EVM, decentralized Data, Protocol Managed Wallets and offchain compute. This allows for composability & substantially broader use…
— Hugo Philion ☀️ (@HugoPhilion) March 24, 2025
Cross-Chain Innovation for XRPL
Furthermore, Flare will enhance XRPL’s capabilities by enabling trustless asset bridging and oracle services. Currently, assets on XRPL require trust in the issuer, but Flare’s protocol-managed wallets will allow seamless transfers between networks.
Additionally, Flare can provide oracles for real-world data, a major feature that XRPL currently lacks.
Philion also highlighted that for XRP holders seeking more advanced financial transactions, Flare’s smart contracts and off-chain computing will facilitate functionalities beyond XRPL’s upcoming programmability.
With these developments, Flare seeks to position itself as an important infrastructure layer for XRP holders looking to maximize their assets in the DeFi scene.