Flare Networks co-founder and CEO Hugo Philion has announced the start of a six-month phase of large-scale integration that he said could significantly reshape XRPFi, the decentralized finance ecosystem built around $XRP.

The first technology updates are expected to begin rolling out within the next two weeks. The changes are intended to make Flare a fully programmable layer for the historically isolated $XRP Ledger, or XRPL.

XRPL was originally designed for fast payments and does not natively support smart contracts. As a result, billions of dollars worth of $XRP have remained in wallets for years without being used in decentralized finance applications. That makes Flare’s roadmap important for XRPFi because it focuses on connecting existing $XRP liquidity to DeFi tools without changing XRPL’s original payments-oriented design.

Flare is seeking to address that limitation through its FAssets system. Under the model, users can convert their coins into the wrapped FXRP token at a 1:1 ratio through hot wallets, allowing them to access staking, liquidity pools and on-chain lending.

Flare Targets Up to 5 Billion $XRP Over Six Months

FXRP issuance has already exceeded 150 million tokens, according to the report. Over the longer term, Philion expects the protocol to attract as much as 5 billion $XRP, equal to about 5% of the coin’s total supply. The report said that level of participation could potentially create a shortage of the asset on exchanges.

The Flare team is also working on what it describes as one of the main obstacles facing traditional DeFi: full transparency, which can discourage large capital holders from participating.

Starting in the next couple of weeks the next 6 months are going to be transformative for XRPFi through Flare. — Hugo Philion (@HugoPhilion) July 26, 2026

Flare’s upcoming Confidential Compute technology is based on trusted execution environments, or TEEs. The system is designed to let institutions execute large trades and take out loans while keeping commercially sensitive information hidden from competitors. At the same time, transactions would remain fully and mathematically verifiable on the main network.

Whether the $XRP price can meet retail investors’ expectations remains uncertain. The report said the current news backdrop calls for realism rather than expectations of an immediate price surge.

The six-month period described by Philion represents a window for deploying code rather than a guarantee of immediate adoption. Institutional participants may also need additional months to complete security audits of the new bridges, a key step for systems that move assets between networks and rely on wrapped representations such as FXRP.

The ecosystem also requires a substantial inflow of stablecoin liquidity, including USDT and USDC, before lending protocols can become fully operational. According to the report, Flare management has directly acknowledged that requirement during private sessions. In practical terms, stablecoin depth is one of the conditions needed for lending markets to support borrowing, collateral management and repayments at scale.

Until those infrastructure issues are resolved, the report said $XRP’s market price will continue to track broader macroeconomic trends and Bitcoin’s movements, while temporarily overlooking local development milestones.