XRP Enters DeFi Lending Market Through Flare's FXRP Token
XRP, the fourth-largest cryptocurrency by market capitalization at approximately $70 billion, has taken its first step into DeFi lending. Flare's FXRP token, a bridged version of XRP on Ethereum, has been approved as collateral in Sentora's RLUSD Main vault on Morpho Blue, allowing XRP holders to borrow Ripple's dollar-pegged stablecoin, RLUSD, without selling their tokens.
This milestone marks the first time an XRP-based asset has been accepted as collateral in a major institutionally curated Ethereum lending market. XRP has been absent from DeFi due to structural factors such as separate blockchain architecture and regulatory uncertainty. The SEC's lawsuit against Ripple, filed in December 2020 and not fully resolved until 2024, created a chilling effect on DeFi integration.
Flare CEO Hugo Philion described the significance of this approval: 'XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.'