Flare Brings XRP-Backed RLUSD Loans to Ethereum

Flare has introduced a new option for XRP holders to access Ripple USD (RLUSD) liquidity on Ethereum without selling their XRP. This is made possible through Flare's integration of FXRP as collateral in Sentora's institutional RLUSD vault on Morpho.

The launch creates an isolated FXRP/RLUSD lending market on Morpho Blue, allowing users to mint FXRP on Flare, bridge it to Ethereum, and borrow RLUSD against their holdings. This process is permissionless and non-custodial, giving users control over their collateral without requiring a custodial intermediary or whitelist.

According to Flare, this integration addresses one of the biggest challenges facing XRP decentralized finance (DeFi): access to deep stablecoin liquidity. The company notes that limited borrowing capacity has historically restricted FXRP-based strategies and reduced capital efficiency.