XRP Holders Can Now Borrow RLUSD on Ethereum Using FXRP
By Lidia Yadlos
XRP holders have long had limited ways to unlock liquidity without selling their tokens. Flare is aiming to change that.
The Layer 1 network has integrated FXRP into Sentora's RLUSD Main vault on Morpho, allowing users to borrow Ripple's RLUSD stablecoin against XRP-backed collateral on Ethereum.
According to Flare, it marks the first time a representation of XRP has been approved as collateral in an institutionally managed lending vault.
Sentora's RLUSD Main vault currently holds around $280 million in deposits, making it the largest institutionally curated RLUSD lending pool on Ethereum.
Bringing XRP Into DeFi Lending
The launch creates a new borrowing market built on Morpho Blue, where users can mint FXRP through Flare's FAssets protocol, move it to Ethereum and use it as collateral to access RLUSD without selling their XRP.
That means XRP holders can unlock stablecoin liquidity while maintaining exposure to the underlying asset, something that has historically been difficult because XRP has had limited integration across Ethereum-based lending markets.
Expanding XRP's Role
XRP remains one of the largest cryptocurrencies by market capitalisation, yet its presence across decentralised finance has lagged behind assets such as ETH and BTC because of limited smart contract functionality and lending integrations.
By securing approval from an institutionally managed RLUSD vault, Flare is positioning FXRP as infrastructure that can connect XRP liquidity with Ethereum's growing DeFi ecosystem.
If adopted more broadly, the integration could give XRP holders another way to put dormant assets to work without exiting their positions, while giving institutional lenders a new form of collateral backed by one of crypto's largest assets.
Published on Morpho