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<div class="key-points-section"><strong>Key Points:</strong>
 <ul>
  <li>A pioneering use of XRP for collateral in DeFi markets begins.</li>
  <li>Flare Network facilitates the launch, boosting DeFi utility.</li>
  <li>Liquidity models expand XRP's financial applications.</li>
 </ul>
</div>
<figure class="wp-block-image aligncenter size-large"><a href="https://coinlive.me/wp-content/uploads/2025/09/enosys-flare-xrp-collaboration-art-file.jpeg" rel="noopener noreferrer nofollow"> </a>
 <figcaption class="wp-element-caption">
  Innovative XRP Use in DeFi Through Flare Network
 </figcaption>
</figure> 
<p>Enosys Loans launched on Flare Network, allowing XRP holders to mint stablecoins using FXRP as collateral, marking the first-ever use of XRP in decentralized finance (DeFi).</p>  
<p>This expansion provides XRP with new utility in DeFi, potentially increasing its market demand and broadening its use beyond payments.</p> 
<p>The innovative launch of <a href="https://flare.network/news/enosys-loans-xrp-backed-stablecoin-flare" rel="noopener noreferrer nofollow">Enosys Loans on the Flare Network</a> provides XRP holders the opportunity to mint stablecoins by collateralizing FXRP, marking a significant expansion of XRP's usability into decentralized finance.</p>
<h2 id="enosys-and-flare-networks-collaboration">Enosys and Flare Networks' Collaboration</h2>
<p><strong>Enosys</strong> and <strong>Flare Networks</strong> collaborate to transform XRP's role in DeFi, deploying a protocol described as a friendly fork of Ethereum's Liquity V2. This makes XRP viable as collateral for DeFi loans.</p>
<h2 id="xrp-s-impact-on-defi-markets">XRP's Impact on DeFi Markets</h2>
<p>The integration impacts DeFi markets by enabling XRP holders to leverage their holdings beyond traditional payments. Institutions can earn staking rewards and diversify investments, a key benefit for XRP utility.</p>
<p>Ripple's partnerships, such as those with SBI and Novatti, are complemented by this DeFi initiative, likely increasing demand and strengthening blockchain ecosystems. This integration anticipates broadening XRP's application scope significantly.</p>
<blockquote>
 "We are thrilled to announce the upcoming launch of Enosys Loans, a friendly fork of Liquity V2 by @LiquityProtocol, deployed on the @FlareNetworks. This marks a historic milestone in the DeFi landscape as the first-ever Collateralized Debt Position (CDP) protocol to leverage XRP..." — <strong>Enosys Team, Official Development Team, Enosys Loans</strong>
</blockquote>
<h2 id="future-developments-and-regulatory-scrutiny">Future Developments and Regulatory Scrutiny</h2>
<p>Stability pools and Flare’s FTSO oracle ensure secure and accurate price feeds for users. The platform plans to include assets like stXRP and FBTC, expanding future collaterals.</p>
<p>Potential developments include significant regulatory scrutiny. Leveraging Flare's infrastructure, XRP continues to evolve in liquidity, asset utility, and market presence, drawing parallels from previous successful DeFi applications.</p>
<blockquote class="twitter-tweet"><a href="https://twitter.com/FlareNetworks/status/1969046745058304089" rel="noopener noreferrer nofollow"></a>
</blockquote> <a href="https://coinlive.me/xrp-stablecoin-loans-flare-network/" rel="noopener noreferrer nofollow">Read original article on coinlive.me</a>

XRP-Backed Stablecoin Loans Debut on Flare Network

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