XRP holders can now borrow RLUSD on Ethereum without selling

FXRP clears its first institutional lending vault on Ethereum

XRP holders have a new way to put their assets to work. Flare's (@FlareNetworks) FXRP is now approved as collateral in Sentora's RLUSD Main vault on @Morpho, marking the first time a version of XRP has been accepted as collateral in an institutionally managed lending vault on Ethereum.

The mechanics are straightforward. Users mint FXRP on Flare, bridge it to Ethereum through Stargate, deposit FXRP into the lending market on Morpho Blue, and borrow RLUSD against their collateral. Throughout the process, XRP exposure stays intact.

The lending market sits inside Sentora's RLUSD Main vault, which holds roughly $280 million in RLUSD deposits, making it the largest institutionally managed RLUSD vault on Ethereum.

Sentora said it reviewed FXRP's market behaviour, oracle design, liquidity, and liquidation mechanics before approving it as collateral. Flare CEO Hugo Philion (@HugoPhilion) framed that review as meaningful in itself, noting that "XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing."

A WBTC moment for XRP

The model draws a direct comparison to Wrapped Bitcoin (WBTC), which lets Bitcoin holders use their BTC in Ethereum-based DeFi without selling. FXRP is designed to do the same for XRP, giving holders access to Ethereum lending markets.

The timing aligns with broader momentum behind Ripple's stablecoin. RLUSD operates on both the XRP Ledger and Ethereum, with the dual-chain design tapping into Ethereum's DeFi ecosystem while leveraging XRPL's fast, low-cost payment network. RLUSD is issued under a NYDFS Trust Charter.

The XRP community has historically had limited access to sophisticated DeFi strategies, but Flare has been building the foundations for XRPFi through FXRP and a growing set of integrations. Flare is also working on direct FXRP minting from the XRP Ledger to Ethereum, which would remove the separate bridge step and make the process faster.

For now, the infrastructure is in place. One of crypto's largest assets has spent years sitting idle. Plugging it into onchain credit is how that changes.

Sources
Decrypt: XRP Holders Can Now Borrow Ripple's RLUSD on Ethereum Without Selling Their Crypto
AltcoinBuzz: FXRP Becomes First XRP Collateral for RLUSD Loans on Ethereum
Flare Network: First-ever modular lending for XRP debuts on Flare via Morpho and Mystic