XRP Now Accepts as Collateral on Ethereum for Stablecoin Borrowing

XRP holders can now borrow Ripple's $RLUSD stablecoin on Ethereum without selling their XRP thanks to a new integration between Flare's FXRP and Sentora's $RLUSD vault on Morpho.

The integration, announced by layer 1 blockchain developer Flare, allows users to convert XRP into Flare's FXRP token, bridge it to Ethereum, deposit it as collateral on the Morpho lending protocol, and borrow $RLUSD. This model is similar to Wrapped Bitcoin (WBTC), which lets Bitcoin holders use their BTC in Ethereum-based decentralized finance without selling it.

The launch builds on Ripple's effort to establish $RLUSD as an enterprise-focused stablecoin, with approval from the New York Department of Financial Services ahead of its launch last month. Mastercard also recently announced that it will support settlement of regulated stablecoins including $RLUSD, Circle's USDC, and SoFi's SoFiUSD.