Flare’s FXRP token has been approved for use as collateral in Sentora’s RLUSD vault on the Morpho platform, marking a significant step in expanding XRP’s role within decentralised finance. The integration allows XRP holders to leverage their holdings as security for loans in Ethereum-based lending markets without liquidating their assets.
Sentora’s approval of FXRP followed a thorough evaluation of the token’s market dynamics, including price oracles, liquidity, and liquidation mechanisms. The RLUSD vault, which holds approximately $280 million in stablecoin reserves, now supports a dedicated FXRP/RLUSD market on Morpho Blue, a component of Morpho designed to structure lending protocols.
Users can mint FXRP through Flare’s FAssets system, transfer it to Ethereum via the Stargate bridge, and then borrow RLUSD while retaining exposure to XRP. The process does not require users to undergo a whitelist, broadening access to the lending market.
Hugo Philion, co-founder and CEO of Flare, noted that infrastructure constraints had previously limited XRP’s utility in DeFi, but the approval reflects growing institutional confidence in FXRP as a viable collateral asset. Jesus Rodriguez of Sentora emphasised the move’s potential to integrate XRP more deeply into on-chain credit systems.
A supply cap has been implemented for FXRP, though this limit is expected to evolve as liquidity increases. The integration underscores ongoing efforts to bridge traditional cryptocurrency ecosystems with decentralised lending platforms.
Written by Jessica Primrose
Stablecoins Desk
