Flare targets XRP and bitcoin DeFi integration to attract institutional funds

Flare Networks, a blockchain network developer, is pursuing a plan to expand its DeFi connection coverage from XRP to bitcoin.

On July 28 local time, blockchain outlet U.Today reported that Flare CEO Hugo Philion (휴고 필리온) said it plans to extend its FAssets technology to bitcoin through a wrapped token, FBTC.

Flare’s plan focuses on converting major cryptocurrencies that are difficult to use directly in DeFi into programmable assets. Referring to prolonged market weakness, Philion said, “It’s not going to suck forever.” This is read as a sign it will not stop expanding infrastructure despite a weak market.

Earlier, Flare unveiled a six-month roadmap related to the XRP Ledger (XRPL) last Sunday. The current FAssets system is designed so users can swap their coins into FXRP on a 1-to-1 basis and use it for staking, lending and liquidity pools. Flare said FXRP issuance has already surpassed 150 million tokens, and it aims to attract up to 5 billion XRP within the next six months. That is about 5 percent of total XRP supply.

Philion also outlined a plan to apply the same structure to bitcoin. The key tool is FCC, Flare Confidential Computing, which is based on a trusted execution environment. Flare sees the technology as a way to reduce the problem of full public disclosure of transaction information, cited as a structural weakness of DeFi. It explained that institutional investors or large asset managers could execute large trades or take out loans without exposing business information to competitors.

This part shows why Flare has chosen bitcoin integration as its next expansion card. Bitcoin has a large market size, but the structure in which all on-chain activity is visible is seen as limiting large-scale funds from entering DeFi. Flare said it will lower that barrier through FCC.

Flare did not promise a short-term price increase. Philion said the company’s finances are stable and there is no risk of operations being halted, but said it plans to focus only on code deployment over the next six months. He also noted that large participants need more time to inspect bridges, and that for lending protocols to operate, a large inflow of stablecoins such as Tether (USDT) and USD Coin (USDC) must follow.

Network indicators already show a certain level of foundation has been built. Flare said total value locked is above $200 million due to increased cross-chain activity. It also said protocol revenue is linked to FIRE, an updated value accrual mechanism. FIRE automatically buys back and then burns the native token FLR.

Flare’s next six months are expected to be a period in which expansion of XRP-based asset inflows and preparatory work for bitcoin’s FBTC proceed at the same time. Still, with bridge verification and securing stablecoin liquidity needing to come first before large funds actually flow in, a key point to watch is how much capital follows after the technology is deployed.

The market sucks. It’s not going to suck forever. I try not to navel gaze.

I spend 60% of my time thinking about what comes next and 40% of my time helping the team execute on existing plans.

Unlike a lot of projects that have blown through their capital and are shutting…