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XRP holders can borrow Ripple's RLUSD on Ethereum using FXRP collateral

Flare said the FXRP approval in Sentora’s RLUSD lending vault on Morpho Blue enables loans backed by XRP exposure rather than a token sale, with a reported $280 million vault size.

Reported · Written up by our desk · Market Structure

Flare said XRP holders can now borrow Ripple’s RLUSD stablecoin on Ethereum without selling their XRP, using Flare’s FXRP token as collateral in a Sentora RLUSD lending vault on Morpho. The setup converts XRP into FXRP, bridges it to Ethereum, deposits FXRP as collateral, and then allows borrowing against the position.

Decrypt reports the approval marks the first time an XRP-based asset has been accepted as collateral in an institutionally curated Ethereum lending vault. Flare described the model as a collateral-backed loan that keeps borrowers’ exposure to XRP price movements while letting them access dollar-pegged RLUSD liquidity.

The lending market runs on Morpho Blue, which uses isolated lending markets intended to contain risk tied to a specific asset. Sentora said it reviewed FXRP’s market behavior, oracle design, liquidity, and liquidation mechanics before approving it as collateral.

The integration supports Ripple’s push to position RLUSD as an enterprise-focused stablecoin. Ripple began testing RLUSD on Ethereum and the XRP Ledger in August 2024, received New York Department of Financial Services approval in December 2024, and Mastercard said last month it would support settlement of regulated stablecoins including RLUSD, USDC, and SoFiUSD.

Latest closeEthereum $1,869.70 ▼0.7%|XRP $1.079 ▼0.6%

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