XRP Now Acceptable Collateral in Major On-Chain Lending Market

XRP holders can now borrow Ripple's RLUSD stablecoin without selling their tokens thanks to Flare's FXRP token being approved as collateral in an institutionally curated Morpho vault on Ethereum.

This is a significant milestone for XRP, which has been largely absent from DeFi markets due to its separate blockchain architecture and regulatory uncertainty. The integration of FXRP as collateral allows XRP holders to convert their tokens to FXRP, bridge it to Ethereum, deposit as collateral, and borrow RLUSD.

The process involves four steps: converting XRP to FXRP, bridging FXRP to Ethereum, depositing FXRP as collateral on Morpho, and borrowing RLUSD. The integration is the first time an XRP-based asset has been accepted as collateral in a major on-chain lending market.