FXRP, Flare Network's wrapped representation of XRP, has been approved as collateral in Sentora's RLUSD Main vault on Morpho, a lending pool holding roughly $280 million in deposited RLUSD and described as the largest institutionally curated RLUSD vault on Ethereum. The approval, announced August 3, 2026, gives XRP holders a new way to borrow Ripple's stablecoin on Ethereum without selling their underlying XRP position.
Access to the vault is non-custodial and permissionless, with no whitelist required. To use it, holders mint FXRP through Flare's FAssets system, bridge the wrapped asset to Ethereum via Stargate, deposit it into the Morpho market, and borrow RLUSD against it at a loan-to-value ratio of their choosing.
A first for XRP on Ethereum's institutional DeFi rails
Sentora, which manages the vault, said it approved FXRP as collateral only after reviewing the asset's market behavior, oracle design, liquidity depth and liquidation capacity under an institutional risk framework, a vetting process that made this the first instance of FXRP being accepted into an institutionally curated vault on Ethereum mainnet. That distinction matters for an asset like XRP, which has historically had limited native DeFi utility compared to Ethereum-native tokens, since most of its liquidity and trading activity have stayed on centralized exchanges or XRP Ledger-native applications rather than Ethereum's lending markets.
Bitrue, which does not operate the vault itself, used the news to promote staking of Flare's native FLR token on its own platform, framing the FXRP collateral approval as validation of the broader Flare ecosystem that FLR staking is tied to.
What it unlocks for XRP holders
The integration effectively gives XRP holders a way to access stablecoin liquidity for spending, trading or reinvestment while retaining upside exposure to XRP itself, the same collateralized-borrowing pattern that has driven billions of dollars in DeFi lending volume for assets like ETH and BTC but that XRP has largely sat outside of until now.
