XRP Holders Can Trade Options on Derive With FXRP Collateral

Key Takeaways

• FXRP now collateralizes XRP options, perpetuals and spot trades.
• Derive settles XRP options in USDC instead of delivering XRP.
• Portfolio margin combines positions under one FXRP collateral balance.

FXRP Opens Onchain XRP Derivatives Access

XRP holders can now use FXRP as collateral for options, perpetual futures and spot trades on Derive, Flare announced Aug. 12. The FXRP integration lets users open positions from self-custodial wallets while the XRP supporting FXRP remains on the XRP Ledger.

Will Procheska, a DeFi analyst, was quoted by Flare as saying:

“XRP has one of the most committed long-term holder bases in crypto, and until now they’ve had no permissionless options market to generate yield or hedge against their position.”

“FXRP on Derive changes that, while the underlying XRP stays on the XRP Ledger,” he added.

Derive combines protocol-level settlement with an order book operated by Derive Trading Co. (formerly Lyra Trading Co.). The structure keeps users’ assets under their control while professional market makers provide bids and offers across multiple strikes and expiration dates.

Options Settle in USDC as Margin Rules Govern Risk

Derive supports options, perpetual futures, and spot positions under a multiasset collateral system that uses USDC as its quote asset. XRP options are cash-settled in USDC, so gains or obligations at expiration change the trader’s USDC balance without transferring XRP or FXRP.