Flare’s FXRP token enables XRP holders to borrow Ripple’s RLUSD stablecoin on Ethereum without liquidating their assets.
XRP holders can now use their tokens as collateral to borrow Ripple’s RLUSD stablecoin on Ethereum, following Flare’s integration with Sentora’s RLUSD vault on Morpho. The move marks the first time an XRP-based asset has been approved as collateral in an institutionally curated Ethereum lending protocol.
The process involves converting XRP into Flare’s FXRP token, bridging it to Ethereum, and depositing it into Morpho’s lending protocol. Borrowers retain exposure to XRP’s price while accessing dollar-pegged liquidity, similar to Wrapped Bitcoin (WBTC) in DeFi markets.
Flare’s CEO highlighted the significance, noting XRP’s underutilization in DeFi due to infrastructure gaps. The integration is seen as a step toward broader institutional recognition of XRP as a viable collateral asset on Ethereum.