XRP holders can borrow RLUSD on Ethereum using FXRP
Flare’s FXRP is approved as collateral in Sentora’s RLUSD vault on Morpho, letting XRP holders bridge FXRP to Ethereum and borrow RLUSD without selling XRP.
Flare announced on Monday that its FXRP token has been approved as collateral in Sentora’s RLUSD Main vault on the Morpho lending protocol. The approval allows XRP holders to borrow Ripple’s RLUSD stablecoin on Ethereum without selling their XRP.
Users can convert XRP to FXRP on Flare, bridge FXRP to Ethereum, deposit it as collateral on Morpho, and borrow RLUSD. Because loans are backed by collateral rather than a sale, borrowers retain exposure to XRP’s price while accessing dollar-pegged liquidity on Ethereum.
The lending market operates on Morpho Blue, which runs isolated lending markets intended to limit risk to specific assets. Sentora said it approved FXRP after reviewing the token’s market behavior, oracle design, liquidity and liquidation mechanics. Sentora described the approval as the first time an XRP-based asset has been accepted as collateral in an institutionally curated Ethereum lending vault.
Hugo Philion, Flare co-founder and CEO, said: “XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure. XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.”
Jesus Rodriguez, Sentora co-founder and CTO-CPO, wrote on X: “Just took a major step to make XRP useful onchain. XRP is one of crypto’s largest and most liquid assets. Yet it remains surprisingly underused in onchain credit. That changes today.”
FXRP is designed to function like Wrapped Bitcoin (WBTC): it provides a bridge that lets XRP holders use their tokens in Ethereum-based decentralized finance without selling them. The approval offers holders a way to obtain onchain credit and liquidity while maintaining price exposure to XRP.
Ripple began testing RLUSD on Ethereum and the XRP Ledger in August 2024 and received approval from the New York Department of Financial Services in December 2024 ahead of the stablecoin’s launch. Mastercard has said it will support settlement of regulated stablecoins including RLUSD, Circle’s USDC and SoFi’s SoFiUSD.
Sentora said its review and Morpho Blue’s isolated markets are intended to address institutional concerns about collateral quality and liquidation mechanics as onchain credit grows. The approval gives XRP holders access to dollar-pegged funds on Ethereum while retaining their underlying asset exposure.
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