By Isaac • September 1, 2026 11:10 am •
XRP is getting a new job in decentralized finance: standing behind losses when onchain systems break.
Firelight Protocol has raised $8 million to build a decentralized protection layer for DeFi, with XRP serving as the first major source of cover capital. The seed round was led by Gumi Cryptos Capital, with Maven 11, Metalayer, Joint Effects and Tribe Capital also participating.
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According to CoinDesk, Firelight plans to launch its protocol and first cover integrations in September. The company is aiming directly at a problem that has kept many fintechs and institutions from putting customer funds into onchain yield products: a smart-contract exploit can erase capital quickly, while a traditional insurance claim can take months to resolve.
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