XRP holders can now tap into dollar liquidity on Ethereum without selling their tokens, after Sentora approved Flare’s FXRP as collateral in its RLUSD Main vault. What changed Flare announced Monday that FXRP — a Flare-wrapped version of XRP — is now accepted as collateral for borrowing RLUSD, Ripple’s enterprise-focused stablecoin, on Ethereum. The flow is straightforward: convert XRP into FXRP, bridge it to Ethereum, deposit FXRP as collateral into the Morpho-powered lending market via Sentora’s RLUSD vault, and borrow RLUSD. Because loans are collateralized rather than sold, borrowers keep exposure to XRP’s price while gaining access to a dollar-pegged asset. How it works and safety measures FXRP plays the same role for XRP that Wrapped Bitcoin (WBTC) plays for BTC — enabling on-chain use of an otherwise off-chain or non-EVM-native asset. The lending market operates on Morpho Blue, which uses isolated lending markets to limit risk to a single asset if problems occur. Sentora said it vetted FXRP’s market behavior, oracle design, liquidity, and liquidation mechanics before approving it as collateral. Why it matters “XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure,” Flare co-founder and CEO Hugo Philion said. “XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.” Sentora’s co-founder and CTO-CPO Jesus Rodriguez framed the move as a major step toward making XRP “useful onchain,” noting the asset’s liquidity and current underuse in on-chain credit. Broader context The launch furthers Ripple’s push to position RLUSD as an enterprise-grade stablecoin. Ripple began testing RLUSD on Ethereum and the XRP Ledger in August 2024 and secured approval from the New York Department of Financial Services in December 2024. Last month, Mastercard said it would support settlement of regulated stablecoins including RLUSD, Circle’s USDC, and SoFi’s SoFiUSD — another sign of growing institutional interest. Bottom line By enabling XRP holders to collateralize FXRP for RLUSD loans on Ethereum, the integration broadens XRP’s DeFi utility and gives holders a way to access dollar liquidity without exiting their XRP positions — a potentially important move for traders and institutions seeking both exposure and capital efficiency.
XRP Holders Can Borrow RLUSD on Ethereum Using FXRP — No Selling Required
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Summary
XRP holders can now access on-chain trading signals by borrowing RLUSD on Ethereum using Flare’s FXRP as collateral. FXRP, a wrapped version of XRP, is accepted in Sentora’s RLUSD Main vault, enabling users to bridge to Ethereum and deposit into Morpho Blue. The move enhances XRP’s support and resistance across markets, with Flare and Sentora emphasizing institutional-grade risk controls. Ripple continues to expand RLUSD’s adoption, securing regulatory approvals and partnerships, including one with Mastercard in July 2026.
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