XRP Holders Can Now Borrow Stablecoin on Ethereum Without Selling

XRP holders can now borrow RLUSD, a stablecoin on Ethereum, without selling their tokens. This new lending option is made possible by Flare's FXRP being approved as collateral in Sentora's RLUSD vault on the Morpho protocol.

The process starts with XRP holders minting FXRP, a token representing their XRP, on Flare. They then bridge FXRP to Ethereum and deposit it as collateral inside Sentora's RLUSD Main vault, which runs on the Morpho Blue lending protocol.

Flare co-founder and CEO Hugo Philion said that this approval gives XRP a stronger form of recognition than another bridge listing, since an institutional risk team now underwrites it directly on Ethereum mainnet.