Flare Enables XRP Borrowing on Ethereum Through $280 Million Lending Pool

XRP holders now have access to borrowing RLUSD on Ethereum without selling their coins. This is made possible by Flare's wrapped version of XRP, FXRP, being accepted as collateral by Sentora in its $280 million lending pool.

Users can post FXRP and take out RLUSD against it, with the approval opening an isolated FXRP/RLUSD market on Morpho Blue. This allows holders to borrow against their XRP exposure rather than selling it, and access is permissionless with no whitelist required.

Flare's co-founder and CEO Hugo Philion said that having institutional risk underwrite FXRP on Ethereum mainnet counts for more than another bridge listing. He noted that XRP is one of the largest assets in crypto but one of the least used in DeFi.

The approval was made possible by an isolated structure, where each Morpho Blue market carries its own collateral asset, debt asset, oracle, and liquidation threshold. This means a failure in the FXRP market stays inside it rather than reaching the rest of the vault.