EarnXRP launches on Flare, offering first native yield vault for XRP holders

XRP holders can now earn yield without converting their holdings to stablecoins, following the launch of EarnXRP—a non-custodial vault on Flare that pays compounded returns entirely in XRP.

Developed through a collaboration between Upshift, Clearstar, and Flare, the product aims to bridge institutional-grade yield strategies with retail accessibility.

XRP-denominated yield product Solves a Longstanding XRP Problem

For years, XRP holders faced a structural disadvantage: earning yield often meant converting XRP into stablecoins or other assets, introducing price risk and complexity.

The new XRP-denominated yield product eliminates that trade-off by keeping deposits, yield generation, and payouts entirely in XRP.

This is about giving XRP holders a native yield experience without forcing them into unfamiliar DeFi mechanics, said a Clearstar spokesperson, emphasizing the product’s focus on transparency and risk management.

The vault is powered by Flare’s FAssets system, which enables XRP to be represented onchain as FXRP at a strict 1:1 ratio.

This infrastructure allows XRP liquidity to be deployed across DeFi strategies while remaining fully redeemable.

How the XRP-denominated yield product EarnXRP Works

Users deposit FXRP directly from their wallets into the EarnXRP vault. In exchange, they receive earnXRP, a receipt token that tracks their principal plus accumulated yield.

All strategies operate non-custodially, and withdrawals burn earnXRP tokens in return for FXRP.

Upshift provides the automated vault infrastructure, while Clearstar curates strategies using institutional risk frameworks.

According to Upshift, all vault operations are handled autonomously, minimizing human intervention and execution errors.

This is a single-click solution that hides complexity while preserving transparency, said Upshift co-founder Alex Smith. Users don’t need to rebalance or chase yield.

Inside the Strategies Powering the XRP-denominated yield product

By combining these approaches, EarnXRP seeks to smooth volatility while maintaining XRP-denominated exposure. Additional strategies are expected to be added as liquidity scales.

Flare co-founder Hugo Philion previously noted that unlocking utility for XRP without compromising decentralization has been a core mission of the network. EarnXRP appears to be a tangible step in that direction.

While the XRP-denominated yield product represents a powerful innovation, it is not risk-free. DeFi strategies remain exposed to smart contract vulnerabilities, liquidity shifts, and market dislocations.

Clearstar emphasized that strategies are continuously monitored and adjusted based on market conditions. This isn’t passive speculation, the firm stated. It’s disciplined risk-managed deployment.

Still, analysts caution that early adopters should understand that yield is variable, not guaranteed.

Why EarnXRP Could Reshape XRP’s DeFi Narrative

The launch of EarnXRP arrives at a critical moment for XRP, as institutional interest in tokenized yield products continues to rise.

By offering a fully onchain, XRP-denominated yield product, the collaboration may unlock dormant XRP liquidity and attract a new class of DeFi participants.

This is how you modernize a legacy asset, said a Flare ecosystem analyst. You don’t force users to leave — you bring yield to them.

Whether EarnXRP becomes a cornerstone product or a high-risk experiment will depend on execution, transparency, and market conditions.

But one thing is clear: the XRP-denominated yield product has officially entered the DeFi spotlight.