FXRP Clears Institutional Risk Review, Enters Largest RLUSD Lending Vault on Ethereum

Flare has given XRP a new use case in DeFi. The network announced that FXRP is now approved as collateral in Sentora's RLUSD Main vault on Morpho, making it the first time a version of XRP has been accepted as collateral in an institutionally managed lending vault on Ethereum.

This move lets XRP holders borrow Ripple's RLUSD stablecoin without selling their XRP. It also brings one of crypto's biggest assets deeper into Ethereum's DeFi ecosystem. The new market runs on Morpho Blue, a permissionless lending protocol on Ethereum.

Users first mint FXRP through Flare's FAssets system and then bridge it to Ethereum. They deposit it as collateral and borrow RLUSD. This means XRP holders can unlock cash while still keeping exposure to XRP instead of selling their coins.