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XRP-backed loans on Ethereum grow, but borrowing is highly concentrated
As of Oct. 1, a Morpho market backed by FXRP showed 7.18 million RLUSD in outstanding loans versus 10.76 million FXRP collateral, with the top three addresses holding 93% of the debt.
CryptoSlate reports that XRP is beginning to support live dollar borrowing on Ethereum through Morpho markets using FXRP, a tokenized representation of XRP. The platform enables XRP holders to mint FXRP, move it to Ethereum, and borrow Ripple's RLUSD stablecoin without selling their XRP exposure immediately.
In a Morpho snapshot dated Oct. 1, the FXRP-backed market had about 7.18 million RLUSD in outstanding loans against 10.76 million FXRP. CryptoSlate says the three largest addresses accounted for almost all of that borrowing, limiting how much the early activity signals broader adoption.
CryptoSlate also notes the market launched in August through Flare and frames the development as a new credit use case for XRP. The outlet adds that the borrowing structure can introduce dependencies tied to moving FXRP as collateral, including bridge, collateral, and redemption considerations that are not present when holding native XRP.
Finally, CryptoSlate highlights that concentration risk is significant: the top three addresses accounted for 93% of roughly $7.2 million in outstanding debt. It says a large repayment could sharply reduce borrowing totals, while another loan from the same wallets could raise them without bringing in many new users.
Latest closeEthereum $2,718.62 ▲1.3%|XRP $1.501 ▲0.8%