XRP's DeFi breakthrough: Why cbXRP on Base and Flare staking could reshape token utility

XRP is quietly becoming the backbone of a growing DeFi ecosystem, with major developments that could fundamentally change how holders interact with their assets. With XRP trading at $1.93 and commanding a $116.72B market cap, the token is now the focus of serious infrastructure expansion.

Moonwell brings XRP lending to Base, opening new yield opportunities

For the first time on the Base ecosystem, Moonwell—a leading lending protocol—has launched support for cbXRP, Coinbase’s tokenized version of XRP. This move represents a significant shift in how XRP holders can deploy their capital.

Here’s what this means: XRP holders can now bridge their tokens to cbXRP on Coinbase, then use them as collateral to borrow USDC on Moonwell. The advantage? You maintain your XRP exposure while gaining liquidity to explore other DeFi opportunities. No forced selling required—a game-changer for those bullish on XRP’s long-term prospects.

The cbXRP lending market opens doors for institutional investors seeking yield-bearing strategies without compromising their XRP holdings. It’s the kind of infrastructure that typically precedes major adoption waves.

Flare’s $100M bet signals serious institutional interest in XRPFi

Behind the scenes, Vivopower—an electric vehicle services company—committed $100 million to XRP staking on Flare, signaling that institutions now view XRP as a legitimate DeFi asset class. This isn’t retail enthusiasm; it’s institutional capital recognizing XRPFi’s potential.

Flare itself is engineering the pieces needed to make this work. The network offers FXRP, a non-custodial, 1:1 tokenized version of XRP. Combined with Vivopower’s backing and Flare’s recent integration of USDT0 (Tether’s omnichain stablecoin), the network is building serious liquidity infrastructure.

The numbers tell the story: Flare’s TVL exploded from $38 million in late April to $162 million by June 8. Current holdings hover around $144 million—still below the peak but reflecting sustained demand.

What’s next: Liquid staking could amplify XRPFi’s appeal

Flare is planning to introduce liquid staking through stXRP, similar to how Lido DAO operates on Ethereum. Holders staking FXRP would receive stXRP tokens in return—letting them earn yields while remaining liquid across the DeFi landscape.

This tiered approach—direct staking → liquid staking → lending/borrowing—creates multiple pathways for XRP holders to generate returns. As institutional players like Vivopower allocate capital and platforms like Moonwell expand support, XRP transitions from speculative asset to functional DeFi primitive.

For XRP holders at current levels, the infrastructure is finally catching up to the vision. Whether through Base’s cbXRP or Flare’s ecosystem, the token’s utility story is no longer theoretical—it’s operational.