Derive Opens XRP Options Trading with Flare's FXRP as Collateral

XRP holders can now trade options and perpetual futures on Derive using Flare's FXRP as collateral. According to Flare, users mint FXRP through its FAssets bridge, which converts tokens like Bitcoin, XRP, and Dogecoin into ERC-20 tokens on the Flare network.

They can then deposit the token into a Derive Portfolio Margin V2 account and trade derivatives from their own wallets. This integration allows XRP holders to hedge against losses, earn premiums by selling options, or speculate on the token's price.

'Options are often the last major market to develop around an asset,' said Nick Forster, founder and CEO of Derive. 'FXRP gives one of crypto's largest holder bases a credible path onchain, and adding Derive's options markets means that capital can now be hedged, used to earn premium and traded with the same sophistication available around other major assets.'

Derive's XRP options settle in USDC rather than XRP. If an option expires at a profit, Derive pays the difference in the dollar-pegged stablecoin while the FXRP remains posted as collateral.