Hex Trust, a digital asset custodian, said it has expanded its partnership with the Flare blockchain to offer institutional clients access to XRP. -targeted decentralized finance (DeFi) while allowing them to maintain control of their assets.
This connection positions Hex as a gateway for funds and firms that want exposure to Flare-based strategies but have avoided them due to operational and compliance constraints. It allows customers to create and trade FXRP, a wrapped version of XRP for the Flare network, alongside staking the native FLR token.
Staking and wrapping tokens typically requires direct wallet connections and signing transactions from hot wallets, a setup many institutions are unwilling to use for core treasury assets. Hex says it addresses this gap by keeping assets in custody while allowing customers to interact with Flare through controlled approvals and standardized workflows.
FXRP is Flare’s individual representation of XRP, designed to allow XRP holders to use the token in smart contract applications without directly moving the underlying asset to a smart contract chain.
For years, XRP has had fewer DeFi options than tokens built on smart contract networks. Flare has tried to change this by creating tools to use XRP in on-chain applications while keeping the original XRP on the XRP Ledger.
Earlier this week, Flare introduced lending markets for FXRP that allow users to earn yield or borrow against wrapped XRP without selling. The move was intended to turn XRP, which lacks native smart contract capability, into usable collateral for on-chain credit and trading.
Mechanisms are important because institutional demand often depends less on performance than on process. Hex said minting and redemption flows would flow through its policy engine, enabling multi-approval controls for cash movements rather than a single trader clicking on a wallet prompt.
Flare said its FAssets system, which underpins FXRP, was designed with audits and monitoring to reduce the risks that plagued previous packaging models. Hex added that it plans to support additional assets on Flare over time, including Bitcoin. as the network expands its tokenization and collateralization toolkit.
