FXRP Can Be Used to Borrow RLUSD From Sentora’s $280M Vault

Sentora announced on Aug. 3 that FXRP was added as collateral to its RLUSD Main vault on Ethereum. The change lets XRP holders convert XRP into FXRP, bridge it to Ethereum, deposit it into the vault’s FXRP/RLUSD market and borrow RLUSD while retaining exposure to their XRP. Sentora said the vault holds about $280 million in deposited RLUSD.

FXRP is created through Flare’s FAssets system, which verifies XRP Ledger transactions and mints a one-to-one token that can interact with Ethereum Virtual Machine-compatible applications. Borrowers must mint FXRP on Flare, bridge the token to Ethereum and deposit it into the isolated FXRP/RLUSD market inside the RLUSD Main vault before borrowing RLUSD up to the market’s loan-to-value limit. Direct minting from the XRP Ledger to Ethereum is under development and would remove the bridge step.

The FXRP/RLUSD market is isolated inside the vault, meaning each market has its own collateral profile, debt asset, price oracle and liquidation loan-to-value ratio. Sentora uses Morpho Blue lending infrastructure to provide the onchain mechanics for borrowing and lending in that market.

Sentora imposed an initial supply cap on the FXRP/RLUSD market. The firm said it will consider increasing capacity based on collateral behavior, oracle reliability, liquidation liquidity and withdrawal conditions.

Before the Sentora listing, FXRP had been used in lending markets, liquidity pools and yield strategies. Flare-related data cited by market participants showed more than 90 million XRP converted into FXRP and roughly 80% of minted FXRP supply deployed in decentralized finance applications. Hyperliquid added FXRP/USDC and FXRP/USDH spot markets.

Jesus Rodriguez, Sentora co-founder and chief technology and product officer, commented: “XRP is one of the largest and most liquid digital assets in the market. By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”

For XRP holders who prefer not to sell their tokens, the FXRP-to-RLUSD route provides a dollar-denominated borrowing option that preserves XRP exposure. Participants in the arrangement include Flare’s FAssets for minting, the Ethereum ecosystem for custody and borrowing, and Morpho Blue for lending infrastructure.