XRP Breaks Into DeFi With Approval as Collateral in Morpho Vault
XRP has finally broken into the DeFi space after years of being absent. The $70 billion asset, currently the fourth largest cryptocurrency by market capitalization, can now be used as collateral in Morpho's RLUSD Main vault on Ethereum.
This is made possible through Flare's FXRP token, a bridged version of XRP on Ethereum, which has been approved as collateral. This integration marks a significant milestone for an asset that has been almost entirely absent from DeFi.
Ripple's RLUSD stablecoin can now be borrowed against FXRP deposits without selling the tokens. The loan is overcollateralized, meaning the value of the FXRP deposit must exceed the value of the RLUSD borrowed.