Firelight Raises $8M to Bring DeFi Loss-Protection to XRP, Bitcoin, and XLM Holders
Firelight has secured $8 million in funding and is expanding its protocol beyond XRP to offer fintechs a faster path to recovering losses from DeFi hacks. XRP holders can earn yield by providing capital that backs this protection mechanism. The development positions XRPL-native assets within a growing DeFi risk-management vertical.
Firelight, a protocol focused on reducing the risk of DeFi participation for fintechs and investors, has raised $8 million and announced an expansion of its supported assets beyond XRP to include bitcoin and XLM.
The core product allows fintechs and investors to recover losses more quickly in the event of a DeFi hack or exploit. On the other side of that arrangement, holders of XRP, bitcoin, and XLM can earn yield by putting up capital that backstops the protection.
For XRP holders specifically, this opens a yield-generating use case that is tied to real risk underwriting rather than speculative activity. The model is designed to make DeFi participation more palatable for regulated fintechs that might otherwise avoid the sector due to security concerns.
The $8 million raise signals early-stage institutional confidence in the DeFi protection niche, and Firelight's decision to include XRP as a backing asset gives the token a functional role in the protocol's collateral layer.
Key facts
- •Firelight raised $8 million in funding
- •Protocol expanding beyond XRP to support bitcoin and XLM
- •Aims to give fintechs faster loss recovery from DeFi hacks
- •XRP holders can earn yield by backing protection capital
- •Targets regulated fintechs hesitant to enter DeFi