Here is another rewritten version with a more concise and publication-ready structure:
XRP holders can now borrow RLUSD on Ethereum using their tokens as collateral, allowing them to access liquidity without selling their XRP positions.
Flare, a blockchain focused on expanding XRP’s use in decentralized finance, announced that its wrapped XRP asset FXRP has been added as collateral to a lending pool managed by Sentora. The pool supports Ripple’s RLUSD stablecoin and holds approximately $280 million in liquidity.
The integration enables users to deposit FXRP and take out RLUSD loans against their XRP holdings. It is the first time an XRP-linked asset has been accepted into the lending pool, opening a new avenue for XRP-based DeFi activity.
The new FXRP/RLUSD market is available on Morpho Blue through an isolated lending structure, allowing users to borrow against their XRP exposure without selling their assets. The market is permissionless, meaning participants do not need prior approval or whitelist access.
Sentora approved FXRP after reviewing its liquidity profile, market activity, oracle infrastructure, and liquidation framework under its institutional risk assessment process. The asset will continue to be monitored alongside other collateral supported within the vault.
To access the market, users currently need to mint FXRP through Flare’s FAssets system, bridge the token to Ethereum through Stargate, deposit it into the lending pool, and borrow RLUSD according to their preferred risk level.
Flare said it is developing Smart Account functionality that would streamline the process, allowing users to complete transactions directly from an XRP Ledger wallet. The company is also working toward direct XRP Ledger-to-Ethereum FXRP minting.
Flare CEO and co-founder Hugo Philion said XRP has a significant presence in the crypto market but remains one of the least utilized major assets in DeFi. He noted that approval from an institutional risk team provides stronger validation than simply adding FXRP through another bridge integration.
The launch was supported by Morpho Blue’s isolated market design, where each lending pool operates independently with separate collateral assets, debt assets, price oracles, and liquidation parameters. This structure limits risks from affecting the broader platform if issues arise within a specific market.
The key challenge now is adoption. Flare has minted roughly 155 million FXRP so far, while Philion has set a target of attracting 5 billion XRP into the ecosystem over six months.
The new lending market will initially operate with a conservative supply cap, which could increase as demand grows. Details regarding the pool’s loan-to-value ratio, liquidation threshold, and oracle provider are expected to be released as the market develops.
