XRP Holders Can Now Borrow RLUSD on Ethereum Without Selling Their Assets

XRP holders now have a new way to access liquidity without selling their assets. Flare has introduced support for using wrapped XRP (FXRP) as collateral to borrow Ripple's RLUSD stablecoin on Ethereum through a new isolated lending market called Morpho Blue.

The market is managed by Sentora, which oversees approximately $280 million in RLUSD liquidity. Before approving FXRP as collateral, Sentora evaluated the asset's market behavior, oracle infrastructure, liquidity profile, and liquidation mechanisms under its institutional risk framework.

Flare co-founder and CEO Hugo Philion said that the approval is significant because XRP remains one of the largest cryptocurrencies by market capitalization but has seen relatively limited use in decentralized finance. He added that institutional risk approval for FXRP on Ethereum's mainnet carries more weight than simply making the asset available through another bridge.

The lending market saw immediate activity after launch, with the initial 1 million RLUSD liquidity allocation being fully borrowed within hours. Flare initially seeded the market with 1 million RLUSD, and that entire allocation was borrowed within hours, demonstrating early demand for XRP-backed stablecoin liquidity.