According to Flare co-founder Hugo Philion, the scale of XRP’s decentralized finance adoption will ultimately be determined by institutional participation.
Speaking during an interview with Tony Edward on the Thinking Crypto Podcast, Philion shared his thoughts on FXRP’s inaugural year on the mainnet and what it has demonstrated about market conditions.
A Year of Proof and Shortfalls
Regarding FXRP, Flare’s representation of the XRP token, Philion was direct about what the first year confirmed. “It’s proven that there’s demand for XRP yield,” he noted. Yet, there remains a wide gap between expectations and actual outcomes.
Philion admitted that his initial projections were much higher and that the platform fell significantly short of those estimates. He attributes this outcome 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.
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— Tony Edward (Thinking Crypto Podcast) (@thinkingcrypto) November 9, 2026
Why Institutions Change Everything
When discussing institutional involvement for FXRP, Philion specifically points to exchanges and Digital Asset Treasury Companies (DATs), which control large supplies of XRP. Their potential impact goes far beyond incremental gains.
As Philion explained, partnering with an exchange could accomplish in a single transaction what would otherwise require numerous retail users. “We can do the whole amount that’s minted currently all in one clip with an exchange,” he stated.
This difference in scale defines the gap between today’s actual adoption and the targets Philion envisioned when he made his initial projections. While individual holders participate, their combined volume cannot match the potential input of just one major exchange.
Relationships Take Time
Rather than viewing the delayed institutional timeline as a product failure, Philion pointed out that building trust and fostering relationships with large enterprises simply takes time.
Persuading exchanges and DATs to adopt FXRP involves careful due diligence on their part alongside ongoing engagement from the Flare team. Philion noted that this foundational work is nearly finished, remarking that the project is “pretty much there.”
Where Things Stand
The demand indicators are encouraging, with smaller investors and retail holders showing a genuine interest in XRP yield. The remaining challenge lies on the supply side, specifically in convincing major institutional holders to commit their XRP to the protocol.
Philion’s remarks indicate that Flare’s growth in the near term relies less on technical development and more on finalizing these long-term institutional relationships. Given the concentration of XRP held by DATs and exchanges, successfully converting these partnerships would have a massive effect on overall volume.