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XRP holders gain options trading using FXRP collateral on Derive

Derive says its XRP options settle in USDC, meaning sellers must post and maintain margin to avoid liquidation risk.

Reported · Written up by our desk · Market Structure

Derive has added support for Flare’s FXRP as collateral for XRP options and perpetual futures, letting XRP holders trade through their own wallets without depositing tokens on a centralized exchange, according to Decrypt.

The integration allows users to mint FXRP, a token that represents XRP on the Flare blockchain, via Flare’s FAssets bridge, which converts tokens including XRP into ERC-20 tokens on Flare. Holders can then deposit FXRP into a Derive Portfolio Margin V2 account and trade derivatives from their wallets.

Derive says the XRP options settle in USDC rather than XRP. If an option expires in profit, Derive pays the difference in the dollar-pegged stablecoin while FXRP remains posted as collateral, and option sellers must hold sufficient USDC for settlement and ongoing margin to avoid liquidation.

In a statement, Derive founder and CEO Nick Forster said options are often a last step in building an asset’s derivatives market and that FXRP provides XRP holders a path to deploy capital onchain. Decrypt also noted that earlier in the month, FXRP was approved as collateral in Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho.

Latest closeEthereum $1,889.51 ▲0.6%|XRP $1.008 ▲0.4%

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