XRP holders can now borrow ETH against their XRP without selling it.Flare, the blockchain that allows XRP to be used in decentralized finance, told CoinDesk on Monday that its wrapped version of the token has been accepted as collateral by Sentora, which operates a $280 million pool of Ripple’s RLUSD stablecoin for lending.
Borrowers wrap XRP, known as FXRP, and borrow RLUSD against that. The approval has resulted in a single FXRP/RLUSD market on Morpho Blue, allowing holders to borrow against their XRP exposure rather than selling it. It’s permissionless, no whitelist to get in.
Before signing off, Sentora looked through FXRP’s market behavior, oracle design, liquidity and liquidation capacity under its institutional risk framework. The asset will be monitored on an ongoing basis just like other collateral in the vault.
There are now a number of steps to get there. FXRP is minted by users through Flare’s FAssets system, bridged to Ethereum through Stargate, deposited into the market and borrowed at their preferred loan to value ratio. Flare says it is working on a route via Smart Accounts that would allow holders to sign off on the entire sequence from an XRP Ledger wallet. Direct XRPL-to-Ethereum minting is also in the works.
“Having an institutional risk team underwrite it on Ethereum mainnet is worth more than another bridge listing,” said Hugo Philion, co-founder and CEO of flare, one of the largest assets in crypto and one of the least used in DeFi.
It’s the isolated structure that makes the approval possible. Each Morpho Blue market has its own collateral, debt, oracle and liquidation threshold, so a failure in the FXRP market remains there and does not affect the rest of the vault.
But the question mark is scale. Since the launch, around 155 million FXRP has been minted, against Philion’s claimed goal of bringing in 5 billion XRP into Flare’s ecosystem over six months. The new market begins with what Flare is referring to as a “conservative supply cap” that could increase as usage grows.
XRP holders can now borrow RLUSD on Ethereum without selling
Flare’s (@FlareNetworks) FXRP has been approved as collateral in Sentora’s RLUSD vault on @Morpho, letting XRP holders convert to FXRP, bridge to Ethereum, and borrow Ripple’s stablecoin while keeping their XRP… pic.twitter.com/ml2Y3APHm2
— BSCN (@BSCNews) August 3, 2026
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