XRP just got a DeFi upgrade it’s been waiting for. Flare Network’s FXRP token has been approved as collateral in Sentora’s RLUSD lending vault on Morpho Blue, a vault currently holding roughly $280 million in deposits. It’s the first time any representation of XRP has been greenlit for an institutionally curated lending market on Ethereum’s mainnet.
The practical upshot: XRP holders can now mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum, and borrow RLUSD, Ripple’s dollar-pegged stablecoin, without ever having to sell their underlying XRP.
How the plumbing works
Flare’s FAssets protocol creates FXRP tokens backed 1:1 by actual XRP. These tokens can then be moved to Ethereum through Stargate, the cross-chain bridging protocol, where they land in an isolated FXRP/RLUSD market on Morpho Blue.
The “isolated” part matters. Rather than pooling FXRP with dozens of other assets, Sentora set up a dedicated market. That limits contagion risk if something goes sideways with FXRP pricing or liquidity.
