XRP, the sixth-largest cryptocurrency, can now be used as collateral to borrow RLUSD via Morpho’s institutional lending protocol.
Flare announced that its FXRP token has been approved as collateral in Sentora’s RLUSD Main vault on the Morpho lending protocol. This allows XRP holders to convert their assets into FXRP, bridge them to Ethereum, and borrow RLUSD, a stablecoin pegged 1:1 to the U.S. dollar.
XRP, with a $67 billion market cap, ranks as the sixth-largest cryptocurrency. RLUSD, with a $1.5 billion market cap, is the largest institutionally curated stablecoin vault on Ethereum, holding $280M in deposits. Sentora reviewed FXRP’s liquidity, oracle design, and risk mechanics before approval.
The move expands XRP’s utility in decentralized finance, enabling institutional participation in onchain credit markets. Morpho Blue’s isolated lending markets aim to mitigate risk by containing potential issues with specific assets.