Here is another rewritten version with a different structure and a more concise market-reporting tone:
XRP holders can now unlock liquidity from their tokens on Ethereum without selling their holdings, as a new $280 million RLUSD lending pool has approved an XRP-based collateral asset for the first time.
Flare, a blockchain focused on bringing XRP into decentralized finance, announced that its wrapped XRP token, FXRP, has been accepted as collateral by Sentora, which oversees a lending market built around Ripple’s RLUSD stablecoin.
The integration allows users to deposit FXRP and borrow RLUSD against their XRP exposure, giving holders a way to access liquidity while continuing to maintain ownership of their underlying assets.
The new FXRP/RLUSD market is available through Morpho Blue as an isolated lending pool, meaning users can borrow against XRP without selling their tokens and without needing approval or whitelist access.
Sentora conducted a detailed review of FXRP before approving it, examining factors such as market performance, oracle reliability, liquidity depth, and liquidation capacity under its institutional risk framework. The asset will remain subject to ongoing monitoring alongside other collateral assets supported by the vault.
At launch, users must complete several steps to participate. They need to mint FXRP through Flare’s FAssets protocol, bridge the asset to Ethereum using Stargate, deposit it into the Morpho market, and borrow RLUSD based on their selected collateral ratio.
Flare said it is working on a simpler process through Smart Accounts that would allow users to complete the entire transaction flow from an XRP Ledger wallet. The company is also developing direct XRP Ledger-to-Ethereum FXRP minting capabilities.
Flare CEO and co-founder Hugo Philion said XRP has a large market presence but remains underutilized in DeFi. He highlighted that institutional approval from Sentora’s risk team represents a significant step beyond simply making XRP available through another cross-chain bridge.
The use of Morpho Blue’s isolated market design helped enable the launch. Each lending market operates separately with its own collateral, borrowed asset, oracle system, and liquidation rules, limiting potential risks to the individual FXRP pool rather than the broader platform.
The next challenge will be attracting sufficient demand. Approximately 155 million FXRP has been issued so far, compared with Philion’s goal of bringing 5 billion XRP into the Flare ecosystem within six months.
The lending market will initially begin with a limited supply cap described by Flare as conservative, with the possibility of expansion as adoption increases. Additional details on lending parameters, including loan-to-value ratios, liquidation thresholds, and oracle sources, are expected to be provided later.
