XRP Enters Institutional DeFi Lending via FXRP Collateral

XRP has made its way into institutional DeFi lending through the use of FXRP collateral on Ethereum. Flare's wrapped XRP token, FXRP, has been approved as collateral in Sentora's RLUSD vault on Morpho, marking a significant milestone for XRP in the decentralized finance sector.

The integration allows XRP holders to borrow RLUSD stablecoins without selling their underlying XRP, expanding the token's utility. The new market operates on Morpho Blue, a permissionless lending protocol that enables isolated lending markets.

According to Flare's co-founder and CEO, Hugo Philion, this approval is 'a stronger form of recognition' than other bridge listings. He noted that limited infrastructure had previously restricted XRP's use in DeFi for years.