Flare's $FXRP Clears Hurdle for Institutional Lending on Ethereum

Flare has obtained authorization to use its wrapped XRP token, $FXRP, as collateral for institutional lending in Sentora's Morpho-based RLUSD Main vault. This move marks the first approval of an XRP representation as collateral within an institutionally curated vault for lending services.

The approval allows users to borrow RLUSD without losing their XRP exposure by leveraging $FXRP as collateral. The $RLUSD Main vault is managing nearly $280M in deposited tokens, making it the largest vault for institutionally curated RLUSD on Ethereum.

$FXRP will be used in conjunction with Morpho Blue, a permissionless lending entity that enables users to create separate lending markets. Flare's FAssets system allows those holding XRP to mint $FXRP and bridge it to Ethereum, where it can be deposited as collateral for RLUSD borrowing.

Hugo Philion, CEO and Co-founder of Flare, stated, 'XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.'