Ripple’s RLUSD stablecoin lending pool expands to include wrapped XRP as collateral, enabling holders to borrow without selling assets.
A $280 million lending pool for Ripple’s RLUSD stablecoin now accepts wrapped XRP (FXRP) as collateral on Ethereum. This marks the first time the pool has supported an XRP-linked asset, allowing holders to borrow RLUSD without liquidating their positions.
The pool, managed by Sentora, approved FXRP after evaluating its market behavior, oracle design, liquidity, and liquidation capacity under an institutional risk framework. The move creates an isolated FXRP/RLUSD market on Morpho Blue, offering permissionless access to borrowers.
Flare is developing tools to simplify the process, aiming to let users authorize borrowing directly from an XRP Ledger wallet. The current workflow involves multiple steps for minting and bridging FXRP.