FLARE CEO JUST SAID IT LIVE!!! (XRP/FLARE EXPLOSIVE NEWS)

Hinzugefügt: 2026-05-21

[00:00:00]Welcome to the second part of my interview with Hugo Fillian. It's an absolute honor to spend this time with you guys. We are talking XRP FI. In this episode, also some of the biggest developers and builders inside of the Flare ecosystem. Hugo does comment on some of his favorite. And we're also going to get into Flare 2.0 and what that's going to mean to Flare and XRP holders. I hope you enjoy the show here.

[00:00:26]Please understand there was a part one.

[00:00:28]If you missed that, we'll link it down below. Let's go ahead and jump on in.

[00:00:32]What What made you guys need to go from 1.2 to 1.3? Was it maybe too complicated before? Did you just want to be able to do all of these additional features?

[00:00:41]>> So, the mint to tag thing is a cool thing. I love it. Right. You've got 60 to 60 to 75% of the potentially being on exchanges. Mint to tag means anyone can just withdraw XRP to Flare. We don't even need permission of the exchanges to do this because it's just using native XRP functionality. So we don't even need to partner with the exchanges for them to do this. It just works. This is what data and decentralization is about. So that's like one one cool thing. But the thing that enables that is that instead of having to mint through agents, we're now allowing minting through the corvol.

[00:01:20]And this reduces the number of steps required to mint. So previously you needed to reserve collateral then uh you would be given a a transaction to make by sending your XRP to an agent's address on the XRP ledger. Then the agent uh the system would confirm you had done that. Then it would deliver the FXRP. So that's two transactions. So one on Flare one on XRP ledger and then an automated transaction which delivers you your FXRP. This you know was a perfectly good first version of the system. This new version of the system just lets you send your XRP to an address with a with your address in the in the memo field in a very specific structure. So don't just set a flare address in the memo field.

[00:02:06]Use our minting tool. So it's just one transaction now which means that a it's easier for users but it also means that uh we don't have the same kind of limits that we had when we you know were minting through agents and that's quite quite nice. We do still have limits. We, you know, one of the things we've talked about a lot is the security of these kind of things.

[00:02:29]>> So, we do still have a limit on how much can be minted in any one time period.

[00:02:34]And that's to avoid any kind of runaway issue with the system. You know, a lot of the bridges, a lot of the problems with bridges have been deeply exacerbated by not having limits. being able to being able to do 500 million in one transaction, you know, that that's I mean straightforwardly is stupid. I don't have anything else set now, you know. So, so yes, there are still limits. I think we're setting the initial like limit that can be minted at any one period of time about 4 million XRP. Could be $4 million, but I I can't remember. It's either $4 million or 4 million XRP. And then you still redeem through the agent. So you're still coll fully collateralized on the way out. So you know the whole point of the F asset system is to system is to reduce risk at every possible point. And then you know the core vault itself is uses the XRP escrow system where you know if we disappear if we you know if something happens if the system comes under attack all of the pretty much all the funds in that core vault gets sent to a custodian regulated custodian that is in fact a partner of Ripple. So you know the whole point of the system is to reduce risk in every component of the system starting with having the best data but then also my background was risk right I spent all my time thinking about okay how do I minimize my risk on this you know we have limits we you know we're trying to make the the system as nice as possible as easy to use as possible this is one of the reasons why people haven't traditionally had limits on bridges they've always felt that it was bad UI We do have limits and we we're happy to make that UI that that that UI compromise, sorry, UX compromise in order to, you know, have have greater safety. Yeah, I'd imagine too if there's a customer that does want to maybe have higher limits, that's a personal conversation they can have with the Flare team and see because I'd imagine as crypto gets be bigger, as more value gets transacted on chain. I mean, you know, I if Flare is really like the the biggest key player here. So, I'd imagine higher limits are a natural thing in the future. What what would that look like?

[00:04:53]Or are you just always going to leave it at these low limits? then you would just have to do, you know, if you wanted to bring in $100 million, you would just need to do 26 or 27 transactions. Like what is what is the >> I mean the system's flexible, right? So, you know, it's not it's not that we can't accommodate that. It's just that you know in the ordinary course of business we don't want you know if let's say there's a an issue with the system and someone you know has has found a bug and suddenly you know and we've got 200 million in the system and somehow they're able to create a an additional 100 million units. The system is diluted by a third.

[00:05:34]>> Yeah.

[00:05:35]>> Right. you know, you've effectively lost a third of the value in the system. Now, we don't want that. We So, you know, you have to kind of you have to think about where, you know, where your tolerances are.

[00:05:49]>> I understand. And you having the background in risk, it just makes sense.

[00:05:52]And I think that's why we haven't really seen any kind of huge issues with Flare.

[00:05:58]At least I couldn't when I was researching this, I couldn't find any kind of hacks or loss. And you know we've we've had a few false alerts.

[00:06:06]>> Yeah.

[00:06:07]>> So we we we use a system which monitors the ecosystem 24/7 both with people and with you know AI and and different types of risk model.

[00:06:19]Had a few false uh false alerts where we've we've you know triggered a pause.

[00:06:24]>> Yeah.

[00:06:24]>> But you know we've not had any losses which is nice.

[00:06:27]>> That's all that matters at the end of the day. I did want to come back here cuz so you explained it beautifully how now somebody on an exchange like Uphold is going to be able to mint FXRP once we have FXRP on let's say Uphold what what is the next steps like >> so I think you know any exchange will be able to any exchange user with where XRP is supported and tags are supported think that's all exchanges will be able to mint FXRP I want to single Single app U upphold very specifically though because they're actually offering products within the Uphold user interface that people will be able to just click and deploy their XRP to. So that's different that's different to being able to mint to Flare and then use it yourself, >> you know. So I I think you know what I want to see is I want to work with many other exchanges to have more one-click products.

[00:07:26]Can you talk to us about what those products will will look like? I mean, are >> Sure. Sure. I I mean, you know, so far they've announced that they'll be offering the ability to stake in Firelight, take your XRP into Firelight for DeFi coverage and the yield on DeFi coverage. We're talking soon about a number of other things such as, you know, getting yield on lending and borrowing. A huge market.

[00:07:48]>> Huge market. Absolutely. And is there is there maybe a product that you guys are not talking about that you would love to see in the future added?

[00:07:56]>> I mean I think there's this sort of a core table stake set of products that we want to work with a number of exchanges on. Loan origination is probably the biggest one in reality and you know I want to work with Apple on that. I also want to work with other large XRP exchanges on that.

[00:08:14]>> Understandable. uh and uh you know for the for the non-technical XRP holder what actually makes F assets and XRP different from the typical multi-IG bridges that we've seen kind of blow up in the ecosystems I think maybe you were explaining that earlier but is there anything you'd like to add on that >> so I mean there's multiple levels of that so it starts with the data so any type of bridge requires data to cross a chain to be effectively transferred by one from one chain to another layer uses all of its validators to go and get data both data from other chains, data from web 2 and price data. So we have different data protocols, but the thing someone needs to understand is that all of our validators, our validators aren't just validating the blocks, they're contributing to the data protocols. And that makes those data protocols very robust because it's effectively the the the pretty much the most contributed data protocol in the entire space as it has the the the widest set of parties that are contributing to it. So that's the the first piece. Second piece is then how we use you know agents where they where they put up collateral the moment for minting and redemption but in the future just for redemption with v1.3 then how we have I suppose limits on something we how how the core vault is structured which is how we alleviate the capital burden from the agents if the agents had to collateralize the entire set the entire amount of XRP that have been minted on flare, they would have a huge capital burden. Uh and and the yield's not um the yield available for minting and redemption is not high enough to support that capital burden, right? So if you think you got to over collapse by basically three times, you need, you know, and your your your risk-free rate is three and a half%.

[00:10:19]>> You need, you know, you need a very high yield. we're not even approaching 10% of what the yield is required. You know, otherwise the bridging fees would have to be really expensive.

[00:10:30]>> No, no one wants to pay that.

[00:10:32]>> So, you know, we we've created this core vault which uses the XRP escro system to basically lock up most of the funds, you know, and they cycle through and uh the system. And you know effectively there's there's what I'm trying to get at here is that there's multiple dimensions of security to you know why it's it's a fundamentally different bridge design to just you know multi-IG which just says someone deposited a token here give them a token here.

[00:11:04]>> Yeah.

[00:11:05]>> Yeah.

[00:11:06]>> Awesome. I appreciate you answering that. And then I did want to jump to uh you know anytime you have a founder they're working with a lot of partners in the space. I wanted to understand which builders or protocols on Flare today best showcase what you want XRP 5 to become. Are there any coming integrations you think that XRP community should watch closely? I know you brought up Firelight. Is that maybe the the biggest and brightest?

[00:11:32]>> So Firelight's the one we incubated.

[00:11:34]Yeah.

[00:11:34]>> Um it's kind of like our brainchild.

[00:11:36]partly our brainchild don't want to take away from the team there who have iterated on on what we asked for. We we set out an RFP request for proposals and Firelight is the one that came back >> but ultimately we wanted you know something that gave XRP holders a yield for securing something in the space and they came back with effectively DeFi cover. So I think that's a great protocol and I think you're going to see a lot of announcements from Firelight over the next couple of weeks, months and and you know I think you'll see real yield you know at the moment it's points and I think you'll see real yield coming through in fireite you know soon. I I can't tell you when I I I know roughly when but >> I bet you got all the secrets.

[00:12:21]>> So you know that that's a that's a great protocol. I think one of the real meat and vegetable use cases for XRP, DeFi, for any DeFi, but you know what XRP has been missing out on, it's lending. I think the best protocol there, the one that's really kind of, you know, there was lending on Ethereum ages ago and then you've had a couple of what Neo lending apps, modular lending apps come along and we have one of the biggest on Flare called Morpho on you know I think that's fantastic application because unlike the original lending apps there's no shared risk between different assets.

[00:13:00]So, you know, if you stake XRP into that blending protocol and someone else stakes Bitcoin, there's no risk between the two assets. And that's that that's that's very nice. You know, what you saw in A when there was a hack a couple of weeks ago.

[00:13:16]>> Yeah.

[00:13:16]>> Was that one one asset contaminated another and and that that is something that Moro doesn't do. And I I like that.

[00:13:25]So, Morpho is a great example. We've also got a Nosis. They do great work.

[00:13:29]It's always difficult to call out >> I understand >> specific things because all the we we appreciate all the builders in the space you know >> we've got a great deck in spark decks we have a great deck in the nois we have a great deck in blaze swap >> we you know spectra who have built our yield trading market which allows you to take your staked XRP from fireite and you know disassemble that into a you know principal token and a yield token that's a fantastic product I'd like to per kind of increase. I'd like I'd like to see more options protocols on Flare, but I think we've got almost all the we we basically have the entire set of necessary protocols for any for any system. Now, I want to add more assets.

[00:14:18]>> Got it. All right. Yeah, you gota you got to have the assets. Interesting enough, I've had Spark Deck on the show and uh Fire Light. I've talked with Jesus, too. He's a incredibly smart gentleman and uh I think you have a a really unique set of developers and builders and and dreamers there building in your ecosystem and I think that's going to really help you be even more successful than you were already going to be.

[00:14:40]>> Absolutely. I mean look we we're we're responsible for the you know we're responsible for building out the network the capabilities of the network flare 2.0 flare confidential compute which we should probably chat about in a second.

[00:14:54]>> Sure. uh you know but we can't do there's no point us doing any of that without the builders.

[00:14:59]>> Did you want to go into the topic that you just brought up?

[00:15:02]>> Yeah, sure. So I mean you know I I think I started by saying you know one of the things we're excited about working with XRP ledger and potentially Ripple on is um you know them as the issuance and and settlement layer for real world assets.

[00:15:18]You know, if you think about XRP right now, XRP ledger is the issuance layer for XRP and Flare is the largest compute layer for XRP fund. The computations that let you get yield happen on Flare.

[00:15:36]>> But when you want your XRP plus your yield back, where do you settle? XRP ledger. Right? So that is a model that works for XRP issuance layer. XRP ledger, compute layer for DeFi, Flare. I see the same happening for RWAS.

[00:15:55]So, you know, issuance layer, XRP ledger, some very specific use cases on the XRP ledger, more complex use cases on Flare. Why? Because we're building something called Flare confidential compute, which is part of what we call Flare 2.0. And confidential compute uses something called trusted execution environment. This is a layer that sits offchain from Flare. So it doesn't it doesn't exist on the network, but it uses Flair's data protocols and it uses the unique features of trusted execution environments to allow us to do things within those environments and have verifiability that they have happened and that the compute the the code that has been uploaded to those environments has executed correctly. So it allows you to verify from that environment onto chain. So to give you an example of that, imagine an RWA that is issued on the XRP ledger is moved to Flare and put up into an application that runs in the trusted execution environment. And that application could be an orderbook based DEX with privacy and >> is it with like KYC compliance built in too with the privacy.

[00:17:16]>> I mean let me yeah that application can be you know a compliant DEX with privacy. So you have an RWA that comes from the XRP ledger and can directly use Flair's application that has compliance and privacy builder for a for an order bookbased deck. This is really really hard to achieve on a layer one, but within Flair's compute environment, we can achieve that. In fact, we've actually already put out a demo of that.

[00:17:43]It exists. It's on test net.

[00:17:46]>> Okay, >> you can go and see it. You can use it.

[00:17:49]It's not that fullfeatured, but it works.

[00:17:52]>> You can trade. You can trade within the TE and you can see that no one knows who you trade it with. So, you know, that is a place where institutions can trade with each other. that is the place where institutions can trade with retail provided the compliance is correct you know uh and that that that's kind of where we see us adding you know large amounts of value I think that there could be other types of protocol that exist in that layer >> that you know things like private lending you know you know let's say you want to borrow a real world asset that represents a stock in order to short it >> okay >> maybe you don't want everyone to know you're shorting that stock.

[00:18:32]>> Yeah.

[00:18:32]>> Maybe you don't want people to know you're shorting that stock inside because then you're susceptible to a short squeeze.

[00:18:38]>> Yeah.

[00:18:39]>> So, I can go to that layer. I can borrow it privately with compliance. I can sell the asset. I'm now short that asset, but no one knows it's me. No one can see that the transaction was for a huge amount of units.

[00:18:54]>> Yeah.

[00:18:55]>> Etc., etc. So you know I think there are there's value to this you know or let's say you know I need to borrow against my corporate equity that's that's tokenized and I don't particularly want people to know I'm borrowing against my corporate equity right I intend to pay it back you know etc. So yeah, I think there's a lot of value there and and this this what we're building. But I think the tokenization will happen on XRP ledger and I think the utility some of the utility that can be offered around that will happen on >> Yeah. because I I think you know and you you you spoke uh you know true to this is that if you're a financial institution, you don't want everybody else knowing what you're doing and you want to be able to use the liquidity of a public, you know, blockchain like the XRP ledger. And it sounds like through Flare they're going to have the ability to kind of have a maybe a walled garden where they can trade and and and have that privacy but use all of this liquidity that >> absolutely and you know with final settlement intermediate estimate on flare and final settlement on the XRP ledger and that's that's that's that's I think a great thing >> but we're also building another protocol within those u within those machines you know we're building protocols for AI so AI with with guard rails Yeah.

[00:20:07]>> Uh so that you can use agents more safely on blockchain. But we're also building something called protocol managed wallets. And this kind of the backbone infrastructure that will allow us to take RWA from the XRP ledger, but also allow us to um to to take assets from other chains. It doesn't allow us to do anything. It allows a protocol to do it. It allows a protocol to manage a wallet, an address on XRP ledger, Bitcoin, Ethereum, Salana, whatever. So, it's something you can build a protocol on Flare that can source or direct funds on whatever chain. And you know I think that is powerful.