Flare Unlocks Institutional DeFi for XRP With RLUSD Borrowing on Ethereum
XRP holders can now access on-chain liquidity without selling their holdings, thanks to a major milestone from Flare that brings institutional-grade lending to Ethereum.
Flare has integrated FXRP into Sentora’s $280 million RLUSD vault on Morpho, allowing XRP holders to use FXRP as collateral to borrow Ripple’s RLUSD stablecoin. It marks the first time an XRP-based asset has been accepted as collateral in an institutionally curated lending vault on Ethereum mainnet, opening the door for XRP to participate in institutional DeFi.
FXRP is a fully collateralized representation of XRP on the Flare network. Holders can convert XRP into FXRP, bridge it to Ethereum, deposit it into Sentora’s RLUSD vault, and borrow RLUSD while retaining full exposure to XRP’s price movements.
The integration addresses one of XRP’s biggest limitations. Instead of selling XRP to raise capital, and potentially missing future gains or creating taxable events, holders can now borrow against their assets, unlocking liquidity while keeping their positions intact.
Borrowed RLUSD can then be deployed across Ethereum’s DeFi ecosystem for trading, lending, payments, or yield-generating opportunities, significantly expanding XRP’s utility beyond cross-border payments and exchange trading.
FXRP Transforms XRP Into Institutional-Grade DeFi Collateral
According to Flare, the launch establishes institutional credit rails for XRP on Ethereum. Unlike a standard bridge integration, FXRP underwent institutional risk assessment before being approved as collateral, highlighting growing confidence in XRP as a credible on-chain financial asset.
Flare CEO Hugo Philion said institutional approval of XRP-backed collateral carries far greater significance than simply listing the asset on another DeFi platform, as it signals increasing recognition of XRP as collateral suitable for professional lending markets.
More notably, this milestone has drawn comparisons to Wrapped Bitcoin (WBTC), which unlocked Bitcoin’s participation in Ethereum’s DeFi economy. Flare believes FXRP can do the same for XRP by transforming one of crypto’s largest assets into productive collateral that supports borrowing and other decentralized financial services.
For years, billions of dollars in XRP have remained largely confined to payments and trading.
With FXRP now live in Sentora’s RLUSD vault on Morpho, XRP holders can finally unlock institutional-grade, permissionless liquidity without giving up ownership of their XRP, a breakthrough that significantly expands the asset’s role in decentralized finance.
