In a significant move for XRP’s DeFi integration, Flare’s wrapped XRP token, FXRP, has been approved as collateral in Sentora’s institutional RLUSD vault on Ethereum. Deployed via Morpho infrastructure, this vault currently holds nearly $280 million in deposited RLUSD, making it the largest institutionally curated RLUSD vault on the network.
The approval marks the first time an XRP-based asset has been accepted as collateral in such a lending environment. By leveraging Flare’s FAssets system, XRP holders can mint FXRP, bridge it to Ethereum, and deposit it as collateral to borrow RLUSD stablecoins without liquidating their XRP holdings. This allows users to access stablecoin liquidity while maintaining exposure to XRP’s price movements.
The lending market operates on Morpho Blue, a permissionless lending protocol. Sentora’s CTO and co-founder Jesus Rodriguez emphasized the scale of the integration: “By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.” Flare CEO Hugo Philion added that having XRP underwritten by an institutional risk team on Ethereum mainnet represents “a stronger form of recognition than another bridge listing.”
Initially, the FXRP/RLUSD market will launch with conservative supply limits for risk management, with collateral monitoring aligned to institutional benchmarks already applied to other authorized assets. The successful approval could pave the way for further integrations of FXRP across Morpho curators, DeFi applications, exchanges, and wallets, potentially accelerating XRP’s role in Ethereum-based DeFi.
