XRP holders can now borrow Ripple’s RLUSD stablecoin on Ethereum without selling their tokens after Flare’s FXRP was approved as collateral in Sentora’s RLUSD Main vault.
Flare, the layer-1 blockchain developer, announced Monday that the integration allows users to convert XRP into FXRP, bridge the token to Ethereum, deposit it as collateral on the Morpho lending protocol, and borrow RLUSD. Because the loan is collateralized rather than funded through a sale, borrowers keep their exposure to XRP’s price while gaining access to dollar-pegged liquidity.
FXRP approved for RLUSD borrowing
“XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure,” Flare co-founder and CEO Hugo Philion said in a statement.
He added: “XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.”
The structure is similar to Wrapped Bitcoin, or WBTC, which lets Bitcoin holders put BTC to work in Ethereum-based decentralized finance without selling it. FXRP is intended to do the same for XRP, opening access to Ethereum lending markets.
Morpho Blue market structure
The lending market runs on Morpho Blue, which uses isolated lending markets designed to contain risk if a specific asset runs into trouble.
Sentora said it reviewed FXRP’s market behavior, oracle design, liquidity, and liquidation mechanics before approving the token as collateral.
Part of Ripple’s broader RLUSD push
The launch builds on Ripple’s effort to position RLUSD as an enterprise-focused stablecoin. In August 2024, Ripple began testing RLUSD on Ethereum and the XRP Ledger for cross-border payments. In December 2024, the company received approval from the New York Department of Financial Services ahead of the stablecoin’s launch.
Last month, Mastercard said it would support settlement for regulated stablecoins including RLUSD, Circle’s USDC, and SoFi’s SoFiUSD.
Sentora says XRP’s on-chain credit use is starting to change
“[Sentora] just took a major step to make XRP useful onchain,” Sentora co-founder and CTO-CPO Jesus Rodriguez wrote on X.
He also wrote: “XRP is one of crypto’s largest and most liquid assets. Yet it remains surprisingly underused in onchain credit. That changes today.”