Flare Network is redefining XRP's role in the DeFi space by enabling its use as collateral through FXRP, according to co-founder Hugo Philion. Traditionally seen as a payment asset, XRP can now be wrapped as FXRP on the Flare network, allowing it to interact with smart contracts and DeFi applications. This transformation enables XRP holders to borrow stablecoins using FXRP as collateral, facilitating participation in liquidity pools and lending markets without selling their XRP. Philion emphasizes that this approach shifts XRP from a mere transfer asset to a financial instrument supporting lending and on-chain yields. The Flare ecosystem's vault-based products, which automate fund allocation and strategy execution, are gaining traction, reflecting growing interest in structured crypto yield products. This development aligns with broader market trends, as highlighted by recent comments from U.S. SEC Chair Paul Atkins on crypto vault frameworks, further expanding XRP's utility beyond payments.