XRP holders can now borrow against their coins on Ethereum without selling them.
Flare, the blockchain that lets XRP be used in decentralized finance, told CoinDesk on Monday that its wrapped version of the token has been accepted as collateral by Sentora, which manages a $280 million lending pool of Ripple’s RLUSD stablecoin.
Borrowers post the wrapped XRP, called FXRP, and take out RLUSD against it.
The approval opens an isolated FXRP/RLUSD market on Morpho Blue where holders can borrow against XRP exposure rather than sell it. Access is permissionless with no whitelist required.
Sentora reviewed FXRP’s market behavior, oracle design, liquidity and liquidation capacity under its institutional risk framework before signing off, and the asset will face the same ongoing monitoring as other collateral in the vault.
Getting there takes several steps today. Users mint FXRP through Flare’s FAssets system, bridge it to Ethereum via Stargate, deposit it into the market and borrow at their chosen loan-to-value ratio. Flare says it is building a route through Smart Accounts that would let holders authorize the whole sequence from an XRP Ledger wallet, with direct XRPL-to-Ethereum minting also in development.