Loading article…
XRP holders can now borrow $280 million in RLUSD on Ethereum without selling, with Sentora approving FXRP as collateral, offering a new use case for one of
XRP holders can now borrow Ripple's RLUSD stablecoin on Ethereum without selling their tokens, thanks to Flare's FXRP being approved as collateral in Sentora's $280 million RLUSD vault on Morpho [3]. This integration allows users to convert XRP into FXRP, bridge it to Ethereum, and deposit it as collateral to borrow RLUSD, retaining exposure to XRP's price while accessing dollar-pegged liquidity.
| At a glance | |
|---|---|
| Lending Pool Size | $280 million |
| Collateral Asset | FXRP (wrapped XRP) |
| Borrowable Asset | RLUSD (Ripple's stablecoin) |
| Catalyst | Sentora's approval of FXRP as collateral |
The approval of FXRP as collateral in Sentora's RLUSD vault marks the first time an XRP-based asset has been accepted in an institutionally curated Ethereum lending vault [1]. This development is similar to Wrapped Bitcoin (WBTC), which enables Bitcoin holders to use their BTC in Ethereum-based decentralized finance without selling it. FXRP is designed to provide the same functionality for XRP holders, giving them access to Ethereum lending markets. The lending market runs on Morpho Blue, which uses isolated lending markets to contain risk if problems arise with a specific asset.
Sentora reviewed FXRP's market behavior, oracle design, liquidity, and liquidation mechanics before approving it as collateral [2]. The launch builds on Ripple's effort to establish RLUSD as an enterprise-focused stablecoin. In August 2024, Ripple began testing RLUSD on Ethereum and the XRP Ledger for cross-border payments. In December 2024, the company received approval from the New York Department of Financial Services ahead of the stablecoin's launch. Last month, Mastercard said it would support settlement of regulated stablecoins, including RLUSD. The current price of XRP is $1.08, down 0.45% [3].
The significance of this development lies in its potential to increase the utility of XRP in decentralized finance, providing holders with new opportunities to access liquidity without selling their tokens. As the crypto market continues to evolve, the ability of XRP to be used as collateral in institutionally curated lending vaults may contribute to its growing adoption and use cases.
Coverage is mostly measured — 161 of 172 reports stay neutral.
Every Monday — the token unlocks, Fed dates & catalysts set to move crypto and markets this week. So you’re never blindsided.
Free · 3-min read · one-click unsubscribe
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Aug 4, 2026 · How we report
XRP is used to pay for network transaction fees, which are then destroyed by the ledger.
No, Ripple currently utilizes its dollar-pegged stablecoin, RLUSD, for institutional settlement and collateral purposes.
These companies provide software for tracking fund ownership and tokenizing fund shares on the XRPL to facilitate borrowing and lending against tokenized assets.