XRP holders finally have a reason to lock up their tokens on Ethereum. Wrapped XRP now works as collateral at Sentora's $280 million lending vault, letting borrowers pull RLUSD stablecoin without dumping their coins. It's the first time this particular pool has accepted an XRP-linked asset.
The mechanics are straightforward. Post FXRP, the wrapped version. Borrow RLUSD at whatever loan-to-value ratio suits you. The isolated market on Morpho Blue runs with no whitelist, no permission checks, fully open. But getting there still requires legwork. Users mint FXRP through Flare's FAssets system, bridge it across to Ethereum via Stargate, deposit into the market, then borrow. Three hops when there should be one.
Flare sees the friction, is fixing it
The blockchain is building Smart Accounts that would collapse the whole sequence into a single authorization from an XRP Ledger wallet. Direct XRPL-to-Ethereum minting is also coming. Hugo Philion, Flare's co-founder and CEO, told CoinDesk on Monday that XRP ranks among crypto's largest assets yet remains criminally underused in DeFi. Having an institutional risk team actually underwrite it on Ethereum mainnet matters more than just another bridge listing, he said.
Sentora put FXRP through the full institutional risk framework before greenlit it. They checked market behavior, oracle design, liquidity, liquidation capacity under stress. The asset faces the same ongoing monitoring as everything else in the vault. That rigor opens doors. XRP was always big in payments, always useful in settlements. Now it's bleeding into decentralized finance, where it's been almost invisible. This move doesn't solve DeFi adoption overnight. But it removes one barrier. Flare's streamlined interface, when it ships, removes another.
This article is informational only and should not be construed as financial advice. Lending markets carry liquidation risk and require careful position management.
