FXRP approved as collateral in Sentora's $280M RLUSD vault on Ethereum
Flare announced FXRP as the first XRP representation accepted as collateral in an institutional lending vault, enabling borrowing against the asset on Ethereum.
Flare has integrated FXRP into Sentora's RLUSD Main vault on Morpho, creating a permissionless lending market where XRP holders can borrow RLUSD without liquidating their holdings. The vault holds approximately $280 million in RLUSD deposits, making it the largest institutionally curated RLUSD facility on Ethereum.
Users can mint FXRP through Flare's FAssets system, bridge it to Ethereum, and use it as collateral to borrow RLUSD at their chosen loan-to-value ratio. The market operates without a whitelist, giving participants full custody and control. Flare's CEO Hugo Philion described the approval as closing an infrastructure gap, noting that XRP ranks among crypto's largest assets but remains underutilized in decentralized finance.
Before approval, Sentora's institutional risk team evaluated FXRP across market behavior, oracle design, liquidity, and liquidation capacity. The market launched with a conservative supply cap subject to increase as usage grows. Interest rates adjust based on utilization, and the isolated market structure on Morpho Blue ensures risks remain contained within the FXRP/RLUSD pairing.
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