Firelight and Sentora have teamed up to bring native, capital-backed insurance directly into the institutional DeFi stack — starting with XRP-based vaults on the Flare Network.
Announced in Dubai on April 23, the integration embeds Firelight’s cover layer into Sentora’s institutional vault infrastructure, which already runs billions in deployed strategies for clients including Kraken and Fireblocks. The goal: turn FXRP staking into a first-class, institutional-grade protection mechanism against smart contract exploits, oracle failures and bad debt — risks that have long held back larger allocators from putting significant capital onchain.
Under the partnership, Firelight will act as the dedicated cover protocol for Sentora’s public and private vaults. Sentora — which offers non-custodial vaults, real-time analytics and more than $3 billion in cumulative deployed capital across hundreds of positions — is positioning this integration as a way to make protection an integrated part of capital deployment rather than an optional add-on.
“Onchain cover primitives are what DeFi needs for broader institutional adoption,” Sentora CEO Anthony DeMartino said, arguing that risk tooling alone no longer satisfies large allocators. Firelight’s approach is designed to give institutions not just risk models, but a capital-backed protection layer built into how they deploy funds.
Technically, Firelight runs on Flare and uses FXRP — a non-custodial, 1:1 wrapped representation of XRP — as its primary collateral. That allows staked XRP to underwrite protocol risk while continuing to earn yield. Since FXRP’s launch, Flare’s total value locked has climbed nearly 38%, and wrapped XRP has unlocked lending and liquidity strategies that aren’t available on the native XRP Ledger.
Flare co-founder Hugo Philion framed the collaboration as validation of the network’s institutional ambitions: “Firelight and Sentora represent exactly what we’ve been building toward with Flare — institutional-grade infrastructure that puts XRP to work in ways that were not previously possible.”
Architecturally, the combined stack pairs diversified FXRP-backed collateral pools with programmatic underwriting driven by Sentora’s proprietary risk models and automated claims processing to reduce friction and improve transparency for both stakers and cover buyers. Sentora co-founder Jesús Rodríguez described the setup as “a capital-efficient, large-scale protocol capable of underwriting technical and economic risk,” noting that years of stress-testing across billions in onchain capital gives it an edge over earlier mutual-style DeFi cover experiments.
By embedding coverage at the vault level, Firelight and Sentora are tackling one of DeFi’s structural barriers to institutional adoption — persistent exploit and oracle risk — and aiming to make protection a standard component of onchain capital deployment rather than an afterthought. If successful, the tie-up could help unlock a larger wave of institutional capital for curated DeFi products.
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