Monarq Asset Management is a FalconX-backed company that develops institutional-grade yield generation strategies for crypto products, including basis trading, structured products, and derivatives.
Flare Network is a pioneering blockchain built specifically for data-intensive use cases. It’s the primary player in the XRP Decentralized Finance (DeFi) space (XRPFi) and the creator of FAssets like FXRP, which enable the use of non-smart-contract-enabled tokens within DeFi applications.
Upshift is an innovative company built on the August prime brokerage. It provides retail traders with access to yield strategies commonly used by institutions. The business also provides institutional-grade vault infrastructure for digital asset strategies.
These companies have combined their expertise to create a new product specifically for XRP holders: the Monarq XRP Yield Vault (MXRPY). It’s a first-of-its-kind product, moving beyond traditional yield-generation techniques such as on-chain lending, liquidity provisioning, and staking to managed products that combine on-chain and off-chain execution.
Expanding XRPFi
XRPFi is a rapidly evolving market. However, yield generation is currently limited. Strategies are dated, and the yield can be low. Moreover, support is rare. On-chain XRP staking doesn’t exist, so yield is restricted to custodial platforms. However, Flare’s FAsset system is changing things, allowing people to use assets like XRP in DeFi applications.
Flare’s FAsset systems strongly synergize with Monarq’s next-generation yield-generation strategies and Upshifts’ vault infrastructure and retail focus, enabling the companies to offer a new type of XRP yield-generation product.
From May 15th, 2026, crypto enthusiasts can deposit XRP to the MXRPY Vault and start earning yield, with a target APY of 3% to 4%. Yield will be distributed over time, based on strategy performance and market conditions. The MXRPY Vault has an initial deposit cap of 500,000 FXRP.
The multi-strategy XRP vault will initially allocate capital to three strategies:
- Options trading: XRP is used as collateral through FalconX’s infrastructure to strengthen crypto options strategies on Deribit and OTC products.
- Basis and funding rate arbitrage: Uses borrowed stablecoins to deploy strategies across major crypto markets.
- On-chain XRPFi deployment: Directs capital to Flare XRPFi opportunities, including lending and liquidity strategies.
After depositing FXRP into the MXRPY Vault, users receive MXRPY tokens, which represent deposited capital as well as accrued yield. Redemptions are processed weekly on Friday.
Discussing the yield vault, Shiliang Tang, managing partner at Monarq Asset Management, said:
“A real financial system needs a broader menu of options. MXRPY is built to be one of those options for XRP holders.”
XRPFi – A Promising Future (Maybe Swap for ‘Looking Ahead’)
Flare’s XRPFi ecosystem is going from strength to strength, with infrastructure providers and asset managers regularly introducing new products. As the MXRPY Vault matures, we could see increases in the deposit cap or the release of additional vault products, bringing XRPFi to a larger audience than ever before.
Access to XRP yield products will be significantly streamlined in the future, with a standalone application planned for release later in the product’s lifecycle. Users will be able to connect XRPL wallets and allocate capital seamlessly, simplifying participation and potentially paving the way for additional inflows from the broader XRP community.
The MXRPY Vault is brand new, so its exact yield and long-term feasibility are still to be seen. However, the product is exciting. It significantly advances the XRPFI ecosystem and provides retail investors with access to institutional strategies. If you’re an XRP holder, it’s worth keeping an eye on MXRPY.
Ethan, Upshift’s growth lead, had this to say regarding the growing demand for XRPFi products:
“The Clearstar EarnXRP vault showed that there is real demand for XRP-denominated vaults on Flare. Upshift provided the infrastructure behind that launch, and we’re now expanding the model with Monarq, a second XRP vault with a different strategy profile and a broader set of yield sources.”
Disclaimer:
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With over half a decade of experience commentating on the cryptocurrency market and even more as a trader and investor, Jay has developed a robust knowledge base that enables him to dive deep into the inner workings of crypto platforms and the broader market to deliver unique, user-focused insight.
Jay's work has spanned public relations firms, crypto projects, affiliate sites, and news outlets.
