XRP Holders Can Now Borrow Against Their Coins on Ethereum
Flare's wrapped version of XRP (FXRP) has been accepted as collateral by Sentora, allowing borrowers to access a $280 million lending pool of Ripple's RLUSD stablecoin on Ethereum.
This approval enables FXRP holders to borrow against their coins without selling them, opening an isolated market on Morpho Blue where they can take out RLUSD against FXRP exposure.
The isolated structure of the market is what makes this approval possible, with each Morpho Blue market carrying its own collateral asset, debt asset, oracle, and liquidation threshold.
Flare's co-founder and CEO Hugo Philion said XRP is one of the largest assets in crypto and one of the least used in DeFi, and that having an institutional risk team underwrite it on Ethereum mainnet counts for more than another bridge listing.