XRP Becomes Collateral for Real Loans, Market Remains Concentrated Among Whales

XRP is expanding its utility as collateral for real loans on Ethereum, but the market remains heavily concentrated among a handful of borrowers.

A Morpho market backed by FXRP, a tokenized representation of XRP, had about $7.18 million in outstanding RLUSD loans against 10.76 million FXRP as of October 1st.

The three largest addresses accounted for almost all of that debt, with the largest position having a buffer to withstand a roughly 45% decline in the FXRP-to-RLUSD ratio before reaching liquidation thresholds.

Native lending on XRP Ledger is being developed, which could make credit easier to access and give institutions another way to use XRPL assets for financing and liquidity management.