XRP Holders Can Now Use FXRP as Collateral in $280M Vault

XRP owners gained a new way to put their assets to work this week. Flare announced that FXRP is now an approved collateral asset within Sentora’s RLUSD Main vault on the Morpho protocol. This $280 million vault is the largest of its kind on Ethereum, and the integration marks the first time an XRP derivative has been vetted for institutional grade lending.

This new market allows users to mint FXRP through the Flare FAssets system, bridge it to Ethereum, and borrow RLUSD without needing to sell their original XRP. The process is permissionless and non custodial. Users maintain their XRP exposure while accessing liquidity, provided they keep their positions within the required loan to value ratios.

Market participants should note that the vault launched with a conservative supply cap. This cap may grow as liquidity increases and the protocol team continues to monitor the asset under their risk framework. Sentora assessed factors like oracle design and liquidation stability before giving the green light.

Looking ahead, Flare is working on simplifying the process. New tools under development aim to automate the minting and bridging steps directly from XRP Ledger wallets. For now, users can access the market through standard bridging methods to supply collateral and borrow against it on Ethereum.