[DigitalToday reporter Yoonseo Lee] XRP holders can now trade options and perpetual futures on decentralised exchange (DEX) Derive using FXRP on layer-1 (L1) blockchain network Flare as collateral.

On Aug. 13, blockchain outlet Decrypt reported that Flare said Derive has begun supporting FXRP as collateral for XRP options and perpetual futures trading.

With the support, users can trade derivatives directly from their wallets without going through a centralised exchange. Flare operates the FAssets system, which converts assets including bitcoin, XRP and dogecoin into ERC-20 tokens that can be used on its network. Users can mint FXRP based on XRP and then deposit it into a Derive Portfolio Margin V2 account.

They can then use FXRP as collateral to trade derivatives such as options and perpetual futures. Options are instruments that trade the right to buy or sell an asset at a set price, while perpetual futures are structured to invest in price movements without an expiry. XRP holders can use them to hedge downside risk or seek premium income by selling options, and they can also make directional bets on prices.

Nick Forster (닉 포스터), Derive’s founder and chief executive officer, assessed the options market as one of the key markets that has yet to be sufficiently built in the XRP ecosystem. He explained that FXRP provides a route into on-chain markets for large-scale XRP holders, and that adding Derive’s options market enables hedging, premium income and the use of various derivatives strategies.

Still, the settlement structure requires attention. Derive’s XRP options are settled in USDC, not XRP. If an option expires in the money, the difference is paid in USDC, a dollar-pegged stablecoin, while FXRP remains as collateral. As a result, option sellers must keep sufficient USDC for settlement and required margin, and they may be liquidated if collateral is insufficient.

The integration also aligns with a broader trend of expanding FXRP’s decentralised finance (DeFi) uses. Earlier this month, FXRP was approved as collateral in the RLUSD main vault of DeFi risk management firm Sentora. The vault is operated on Ethereum-based lending protocol Morpho and is designed to allow XRP holders to use FXRP to borrow Ripple’s RLUSD stablecoin without selling XRP.

Flare is therefore expanding FXRP from a simple wrapped asset into collateral used for lending and derivatives. With Derive support, XRP holders can use on-chain hedging, monetisation and leveraged trading without disposing of spot holdings.

With FXRP as collateral on @derivexyz you can: • Sell calls or puts at strikes you’re willing to take — and earn the premium • Buy puts to hedge downside without selling spot • Run spreads to cap risk • Trade perps from the same FXRP balance Portfolio margin.… https://t.co/MpHWSNJt3C