XRP Holders Get New Lending Option with FXRP Approval
XRP holders have been given a significant boost as Flare Networks' wrapped XRP token, FXRP, was approved as collateral in Sentora's RLUSD Main vault on Morpho Blue.
This move allows XRP holders to borrow Ripple's RLUSD stablecoin on Ethereum without selling their coins. According to CoinDesk, the integration of FXRP as collateral in an institutionally curated vault marks a major change for the XRP DeFi ecosystem.
The process is straightforward: users mint FXRP through Flare's FAssets system, bridge it to Ethereum via Stargate, deposit it as collateral, and borrow RLUSD at their chosen loan-to-value ratio. The market sits inside an isolated FXRP/RLUSD lending pool on Morpho Blue.
Sentora manages the vault, which currently holds approximately $280 million in deposited RLUSD, making it the largest institutionally curated RLUSD vault on Ethereum. Flare's CEO noted that despite XRP's size as an asset, it has historically seen very little use in DeFi.