XRP’s reach is expanding as CoinDesk recently reported that Flare Networks’ wrapped XRP token, FXRP, was approved as collateral in Sentora’s RLUSD Main vault on Morpho Blue.
The move lets XRP holders borrow Ripple’s RLUSD stablecoin on Ethereum without selling their XRP.
XRP has long been one of the largest assets in crypto by market capitalization. For years, though, holders had few ways to put those coins to productive use on-chain. Flare has been working to enhance the XRP DeFi ecosystem, and a major change has come.
NEW: $XRP holders can now borrow $RLUSD against their coins on Ethereum without selling, via @FlareNetworks's wrapped $FXRP accepted as collateral on Morpho Blue. pic.twitter.com/z0hfjvf23Z
— CoinDesk (@CoinDesk) August 4, 2026
How the New Market Works
The process runs through several steps. Users mint FXRP through Flare’s FAssets system, bridge it to Ethereum via Stargate, deposit it as collateral, and borrow RLUSD at their chosen loan-to-value ratio. The market sits inside an isolated FXRP/RLUSD lending pool on Morpho Blue. Access is permissionless, with no whitelist required.
Sentora manages the vault. It reviewed FXRP’s market behavior, oracle design, liquidity, and liquidation capacity before approving the asset. The vault currently holds approximately $280 million in deposited RLUSD, making it the largest institutionally curated RLUSD vault on Ethereum.
Flare’s CEO noted that despite XRP’s size as an asset, it has historically seen very little use in DeFi. Sentora’s approval by an institutional risk team signals that FXRP now meets the standards required for serious on-chain lending infrastructure.
Why This Matters for XRP Holders
XRP holders retain exposure to the asset’s price while unlocking stablecoin liquidity. Selling is no longer the only option for accessing capital. Borrowers must stay below the permitted loan-to-value ratio, and positions can be liquidated if collateral value falls too far. The market launches with conservative supply caps that may rise as adoption grows.
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Sentora’s leadership described the integration as bringing XRP’s scale into DeFi credit markets and expanding the asset’s productive utility on-chain. The integration draws a clear parallel to how Wrapped Bitcoin brought BTC capital into Ethereum’s lending ecosystem years ago.
What Comes Next for Flare and XRP?
Flare is actively simplifying the borrowing process. The team is building a Smart Accounts route that will let users authorize the entire flow directly from an XRP Ledger wallet. Direct XRPL-to-Ethereum minting is also in development.
The launch marks the first time an XRP-based asset has been approved as collateral in an institutionally curated vault on Ethereum mainnet. It positions XRP for a larger role in DeFi as Flare continues building infrastructure around the asset.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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