Flare Brings XRP-Backed Borrowing to Ethereum

Flare has enabled XRP-backed borrowing on Ethereum through its FXRP collateral on Morpho. This integration marks the first time an XRP-based asset has been approved as collateral in a permissionless lending market.

The RLUSD Main vault on Morpho, managed by Sentora, currently holds around $280 million in deposited RLUSD. Users can now mint FXRP through Flare's FAssets protocol and deposit it into an isolated lending market to borrow RLUSD without liquidating their XRP position.

The integration is intended to close the gap between XRP's limited participation in decentralized finance compared to assets like ETH or BTC. Borrowers remain exposed to XRP through FXRP while selecting their preferred loan-to-value ratio, provided their positions stay below the liquidation threshold.