XRP Holders Can Now Trade Options Using Flare’s FXRP as Collateral

“Options are often the last major market to develop around an asset, and XRP has been waiting for the infrastructure,” founder and CEO of Derive, Nick Forster, said in a statement. “FXRP gives one of crypto’s largest holder bases a credible path onchain, and adding Derive’s options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.”

Derive’s XRP options settle in USDC rather than XRP. If an option expires at a profit, Derive pays the difference in the dollar-pegged stablecoin while the FXRP remains posted as collateral. Options sellers must hold enough USDC to cover settlement and maintain the required margin or risk liquidation.

The integration broadens FXRP’s use in decentralized finance. Earlier this month, FXRP was approved as collateral in DeFi risk management firm Sentora’s RLUSD Main vault on the Ethereum-based lending protocol Morpho. That service allows XRP holders to bridge FXRP to Ethereum and borrow Ripple’s RLUSD stablecoin without selling their XRP.