According to Flare co-founder Hugo Philion, the scale of XRP’s decentralized finance (DeFi) adoption ultimately hinges on institutional participation.
He shared these insights during an interview on the Thinking Crypto Podcast hosted by Tony Edward, discussing the lessons learned from the mainnet launch of FXRP during its first year.
A Year of Proof and Shortfalls
Addressing FXRP, Flare’s representation of the XRP token, Philion highlighted what the past year has verified. “It’s proven that there’s demand for XRP yield,” he noted. However, a wide gap remains between initial expectations and actual outcomes.
Philion freely admitted that his personal projections were much higher and that the project missed those figures significantly. He attributes this shortfall directly to the fact that institutions have not yet moved in at scale.
The Truth About XRP Yield And Institutional Adoption!
Hugo Philion, Co-Founder of Flare, explains why XRP DeFi adoption has been slower than expected and how growing institutional interest and adoption could accelerate its growth.
Watch the full interview… https://t.co/QzxOjBZUip pic.twitter.com/waXm802kQD
— Tony Edward (Thinking Crypto Podcast) (@thinkingcrypto) November 9, 2026
Why Institutions Change Everything
When discussing institutional involvement with FXRP, Philion focuses specifically on exchanges and Digital Asset Treasury Companies (DATs), which control vast volumes of XRP. Their potential impact goes far beyond incremental growth.
As Philion pointed out, partnering with a single exchange could match the volume generated by a massive group of individual retail users in one go. “We can do the whole amount that’s minted currently all in one clip with an exchange,” he stated.
This stark difference in scale explains why current adoption levels trail behind the vision Philion held when he made his initial projections. While individual holders are contributing, their collective volume pales in comparison to the capacity of a single large exchange.
Relationships Take Time
Rather than viewing the delayed institutional timeline as a failure of the technology, Philion pointed out that building trust and fostering relationships with major organizations simply takes time.
Integrating FXRP requires careful due diligence from exchanges and DATs, alongside persistent outreach from the Flare team. Philion mentioned that this ongoing process is now nearing the finish line, noting that the project is “pretty much there.”
Where Things Stand
Demand indicators remain strong, with retail investors and smaller holders showing genuine interest in XRP yield. The remaining challenge lies on the supply side, specifically whether large institutional holders will ultimately allocate their XRP to the protocol.
Based on Philion’s remarks, Flare’s short-term progress depends less on ongoing product development and more on finalizing institutional partnerships that have been in development. Securing these deals would have a massive volume impact given the heavy concentration of XRP held by DATs and exchanges.
Frequently Asked Questions
What is FXRP?
FXRP is Flare’s representation of the XRP token designed to bring utility and yield opportunities to the asset.
Why has XRP DeFi adoption been slower than expected?
According to Flare co-founder Hugo Philion, adoption has lagged behind early projections primarily because large institutions—such as exchanges and Digital Asset Treasury Companies—have not yet participated at scale.
How can institutional adoption change Flare’s volume?
Philion notes that onboarding a single major exchange or institutional player could match the total minted volume currently produced by numerous individual retail participants in a single transaction.
Are institutional partnerships close to finalizing?
Yes, Philion indicated that the time-consuming process of building trust, conducting due diligence, and establishing relationships with major entities is now “pretty much there.”
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Written by
Elara Winter
