XRP DeFi Ecosystem Soars: BitGo Throws Weight Behind Flare and Songbird Networks

Institutional custody giant BitGo just supercharged XRP''s DeFi ambitions—adding full support for Flare Network''s smart contract capabilities and Songbird''s canary network. This isn''t your grandpa''s custody solution.

Why it matters: Flare''s EVM compatibility and Songbird''s testing environment now sit inside the same vaults securing billions in institutional crypto. Suddenly, XRP''s utility moves beyond payments into programmable finance—just as Wall Street starts caring about yield.

The cynical take: Banks will pretend they always loved DeFi the moment they can charge 2% custody fees on it. Meanwhile, the actual builders keep shipping.

Bitgo’s Strategic Expansion Into the XRP Ecosystem

On June 12, Bitgo confirmed it now supports both custody and self-custody options for FLR and SGB, marking a critical upgrade for institutions wanting exposure to XRP-linked DeFi tools. This includes both hot and cold wallet solutions, with staking and delegation features expected later in 2025. These capabilities make it easier and more secure for institutions to participate in DeFi using assets connected to the XRP ecosystem.

The inclusion of FLR is particularly notable, as it is ranked among the top 100 cryptocurrencies by market capitalization. By integrating Flare and Songbird, Bitgo has become one of the first major custodians to actively support DeFi infrastructure based around XRP, further expanding its already impressive list of supported assets.

Flare and Songbird: Enabling DeFi for XRP

Flare is an ethereum Virtual Machine (EVM)-compatible blockchain designed to bring smart contract functionality to tokens like XRP and Bitcoin that lack native programmability. Its system includes tools such as the Flare Time Series Oracle (FTSO) and State Connector, which allow for secure data access from off-chain sources. These innovations are key to supporting DeFi operations such as lending, trading, and yield farming.

Flare also features the FAssets protocol, which enables XRP to be represented as a smart contract-compatible asset without giving up custody. This non-custodial model aligns well with the preferences of both institutions and retail holders looking for secure DeFi options.

Songbird, Flare’s “canary network,” serves as a live testing ground where all upcoming protocols and upgrades are deployed first. It ensures new features are battle-tested before being rolled out on Flare’s mainnet, providing reliability and security for institutional users.

$100 Million Institutional Vote of Confidence in XRP

The timing of Bitgo’s support is highly strategic. Nasdaq-listed Vivopower, an energy company pivoting into Web3 infrastructure, recently committed $100 million worth of XRP to the Flare ecosystem using the FAssets protocol. This sizable MOVE demonstrates a growing trend: companies are beginning to utilize DeFi as part of their corporate treasury strategy.

Instead of keeping assets idle or tied up in traditional instruments, businesses are increasingly exploring decentralized options to earn yield and engage with tokenized financial services. The integration of Bitgo’s custody ensures those treasury assets remain securely managed while participating in DeFi.

Hugo Philion, co-founder and CEO of Flare, emphasized the importance of Bitgo’s role in this evolution. “Partnering with a well-established, U.S.-based qualified custodian like Bitgo is a key milestone in Flare’s institutional journey,” he said. The endorsement from a regulated, widely respected custodian brings new credibility to the XRP DeFi landscape.

What This Means for XRP and Institutional DeFi

With Bitgo offering robust custody support and staking options on the horizon, XRP holders now have a secure gateway into DeFi protocols without needing to leave the XRP ecosystem. For institutions wary of using bridges or third-party tools to access decentralized markets, Bitgo’s solution represents a seamless and compliant alternative.

This development also reflects a broader trend in the digital asset space. Institutions are seeking interoperable, secure blockchain solutions that align with traditional compliance and custodial requirements. XRP, via Flare and Songbird, now fits into that picture more than ever before.

As institutional demand continues to grow, more regulated custodians and financial platforms are likely to follow Bitgo’s lead. With tools like FAssets, the Flare Oracle, and delegated staking, XRP is becoming a central player in the next wave of institutional DeFi adoption.