Hugo Philion, co-founder of Flare, says institutional participation is the primary factor that will determine the scale of XRP’s DeFi adoption.
He made the remarks in an interview on the Thinking Crypto Podcast, hosted by Tony Edward, reflecting on FXRP’s first year on mainnet and what it has revealed about the market.
A Year of Proof and Shortfalls
Philion was clear about FXRP, Flare’s representation of the XRP token, and what its first year confirmed. “It’s proven that there’s demand for XRP yield,” he said. That much is established. The gap between expectation and reality, however, is significant.
Philion acknowledged he had predicted a much larger number and that the project fell well short of it. The reason, in his view, comes down to the fact that institutions have not yet moved in at scale.
The Truth About XRP Yield And Institutional Adoption!
Hugo Philion, Co-Founder of Flare, explains why XRP DeFi adoption has been slower than expected and how growing institutional interest and adoption could accelerate its growth.
Watch the full interview… https://t.co/QzxOjBZUip pic.twitter.com/waXm802kQD
— Tony Edward (Thinking Crypto Podcast) (@thinkingcrypto) November 9, 2026
Why Institutions Change Everything
When Philion talks about institutional participation in the context of FXRP, he is referring specifically to Digital Asset Treasury Companies (DATs) and exchanges. These are entities that hold XRP in large volumes. Their involvement is not incremental.
Philion explained that getting an exchange on board could replicate in a single transaction what currently takes a large number of individual retail participants. “We can do the whole amount that’s minted currently all in one clip with an exchange,” he said.
That scale difference is what separates the current state of adoption from the vision Philion had when he made his initial projections. Individual holders contribute, but their cumulative volume does not compare to what a single major exchange could bring.
Relationships Take Time
Philion did not treat the slower-than-expected institutional timeline as a failure of the product. He attributed it to the time required to build trust and develop relationships with large entities.
Getting DATs and exchanges comfortable with FXRP is a process. It requires due diligence on their end and sustained engagement from the Flare team. Philion indicated that this process is now approaching completion, stating the project is “pretty much there.”
Where Things Stand
The demand-side signal is positive. Retail and smaller holders have demonstrated genuine interest in XRP yield. The gap that remains is on the supply side of participation, specifically whether large institutional holders will commit their XRP to the protocol.
Philion’s comments suggest that Flare’s near-term growth depends less on product development and more on closing institutional relationships that have been in progress. If those relationships convert, the volume impact would be substantial given the concentration of XRP held by exchanges and DATs.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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