XRP Holders Can Now Borrow Stablecoins Without Selling
XRP holders can now borrow Ripple's RLUSD stablecoin on Ethereum without selling their tokens thanks to Flare's integration with Sentora. The partnership allows users to convert XRP into FXRP, a token that represents XRP on Ethereum, and use it as collateral for RLUSD loans.
This model is similar to Wrapped Bitcoin (WBTC), which enables Bitcoin holders to use their BTC in Ethereum-based decentralized finance without selling it. Flare's co-founder and CEO, Hugo Philion, said that 'XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure.'
The integration builds on Ripple's effort to establish RLUSD as an enterprise-focused stablecoin. In August 2024, Ripple began testing RLUSD on Ethereum and the XRP Ledger for cross-border payments, and in December 2024, it received approval from the New York Department of Financial Services.