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XRP holders can borrow RLUSD on Ethereum using FXRP collateral

The new permissionless Morpho Blue lending pool for RLUSD approved FXRP after review of its oracle, liquidity, and liquidation capacity, using a $280 million vault.

Reported · Written up by our desk · Market Structure

CoinDesk reports that XRP holders can now borrow Ripple’s RLUSD stablecoin on Ethereum without selling their XRP exposure, by using wrapped XRP (FXRP) as collateral.

The setup is available through an isolated market on Morpho Blue, where Sentora manages a $280 million RLUSD lending pool and approved FXRP after assessing factors including market behavior, oracle design, liquidity, and liquidation capacity under an institutional risk framework.

The isolated structure is intended to contain risk within the specific FXRP/RLUSD market, so a failure there would not spill into the rest of the vault, and the collateral will undergo ongoing monitoring like other assets in the vault.

To access the borrowing flow today, users mint FXRP via Flare’s FAssets system, bridge it to Ethereum via Stargate, deposit it into the Morpho Blue market, and borrow at a chosen loan to value ratio, while Flare is working on tools to streamline the multi-step process.

Latest closeEthereum $1,854.77 ▼1.5%|XRP $1.072 ▼1.2%

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