VivoPower Partners with Flare to Use $100M of XRP to Generate Yield on Its Treasury Holdings

VivoPower, a company listed on NASDAQ (VVPR), has announced a partnership with Flare to use $100 million worth of XRP to generate yield on its treasury holdings.

VivoPower, a company listed on NASDAQ (VVPR), has announced a partnership with Flare to use $100 million worth of XRP to generate yield on its treasury holdings. This is part of the firm's new plan to focus on XRP for their financial strategy.

Using Flare's FAssets system, VivoPower can now use XRP in decentralized finance (DeFi) to earn profits from a tool called Firelight, and then put those profits back into buying more XRP.

This is the first time a big company will be using XRP in this way within DeFi, making it a significant step. The firm will also hold Ripple's RLUSD stablecoin to ensure stability and regulatory compliance in its digital treasury. CEO Kevin Chin said the collaboration transforms XRP into a "compounding engine" for shareholders, maximizing treasury productivity.

Flare co-founder Hugo Philion described FAssets as a system that allows institutions to access DeFi in a safe way, expanding XRP's use cases. It is being used to launch new use cases for the XRP Ledger (XRPL), which has reliably processed over 3.3 billion transactions since 2012. It is also backed by Saudi Prince Abdulaziz bin Turki bin Talal Al Saud, who has been a part of a $121 million funding initiative for the blockchain startup. The startup is also being guided by former executives from Ripple's Asia operations.

This partnership showcases the increasing confidence institutions have in both XRP and Flare. It also shows how committed VivoPower is to the potential of both technologies. Their partnership follows the XRPFi standard, which aims to generate consistent returns, follows clear guidelines, and prioritizes the safety of investments for large companies.

Flare's system has been further strengthened with a $90 million investment from a stablecoin named USDT0, solidifying its role as a central platform for deploying XRP within decentralized finance.

This approach by VivoPower could inspire other large companies to consider using XRP for their own digital asset strategies and global payment needs. As VivoPower takes the lead in managing cryptocurrency for its treasury, it paves the way for other public companies to integrate blockchain into their financial plans, supported by global investors and experts in the field of XRP.