Flare said Thursday that FXRP now works as collateral on Derive, letting XRP holders trade on-chain options and perpetual futures from their own wallets. The integration gives XRP a permissionless options market for the first time, a gap that's been glaring for an asset with one of the most committed holder bases in crypto. It also marks a step forward for Flare's FAssets system, which lets users mint FXRP by locking XRP.
How the collateral works
XRP holders mint FXRP through Flare's FAssets system, deposit it on Derive, and use a Portfolio Margin V2 account for hedging, premium generation, and directional trades. Derive's XRP options are cash-settled in USDC — if a contract expires in the money, the difference is paid in USDC, and FXRP stays as collateral. No underlying XRP moves, which means holders can keep their XRP exposure while using the wrapped version to generate yield or hedge.
Derive's on-chain options volume
Derive is built on Lyra Finance infrastructure and runs options, perpetual futures, and spot trading through one portfolio margin system. It traded more 30-day notional options volume than any other on-chain venue tracked by DefiLlama, with total value locked near $118 million. That volume leadership suggests the venue has the liquidity to support XRP options from day one.
FXRP's fast start
FXRP reached mainnet in September 2025, with a first-week cap of 5 million tokens that filled within four hours. More than 155 million FXRP had been minted within seven months of mainnet launch. Deployed across DeFi applications, FXRP rose from 82 million to 144 million since February, with more than 40 million XRP earned through Flare's Smart Accounts across nearly 24,000 accounts. Flare also listed an FXRP/USDC spot pair on Hyperliquid, giving the wrapped asset another venue to trade.
What XRP holders get
"Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure," said Nick Forster, Co-Founder and CEO of Derive.
DeFi analyst Will Procheska put it more bluntly: "XRP has one of the most committed long-term holder bases in crypto, and until now they've had no permissionless options market to generate yield or hedge against their position."
Whether those holders will actually put their conviction to work in the options market is the open question now.
