Derive Opens XRP Options Trading with FXRP Collateral

XRP holders can now trade options on Derive using FXRP as collateral. This move expands access to XRP derivatives for self-custodial wallet users, allowing them to hedge against their positions or generate yield without transferring their underlying XRP. Flare's XRPFi infrastructure has enabled the creation of an onchain representation of XRP in the form of FXRP, which can be used as collateral for options and other trades.

Derive combines protocol-level settlement with a traditional order book, operated by Derive Trading Co. (formerly Lyra Trading Co.). This structure keeps users' assets under their control while professional market makers provide bids and offers across multiple strikes and expiration dates.

XRP options are cash-settled in USDC, meaning gains or obligations at expiration change the trader's USDC balance without transferring XRP or FXRP. Derive also supports perpetual futures and spot positions under a multi-asset collateral system that uses USDC as its quote asset.