Kraken DeFi vault adds XRP-linked collateral providers to earn fees

Kraken's USDC vault will direct part of its yield to XRP-linked collateral providers underwriting DeFi losses via Firelight. The integration allows XRP holders to earn fees by supplying FXRP as collateral, though Kraken depositors face lower yields as protection fees are deducted. Firelight converts USDC premiums into FXRP, increasing collateral backing for stakers. The deal creates a new distribution channel for Firelight and potential recurring income for XRP-linked capital, though the protocol has not disclosed generated premiums or acquired FXRP amounts.