Flare’s FXRP approved as collateral for $280M RLUSD lending vault on Ethereum

XRP just got a DeFi upgrade it’s been waiting for. Flare Network’s FXRP token has been approved as collateral in Sentora’s RLUSD lending vault on Morpho Blue, a vault currently holding roughly $280 million in deposits. It’s the first time any representation of XRP has been greenlit for an institutionally curated lending market on Ethereum’s mainnet. The practical upshot: XRP holders can now mint FXRP through Flare’s FAssets protocol, bridge it to Ethereum, and borrow RLUSD, Ripple’s dollar-pegged stablecoin, without ever having to sell their underlying XRP. How the plumbing works Flare’s FAssets protocol creates FXRP tokens backed 1:1 by actual XRP. These tokens can then be moved to Ethereum through Stargate, the cross-chain bridging protocol, where they land in an isolated FXRP/RLUSD market on Morpho Blue. The “isolated” part matters. Rather than pooling FXRP with dozens of other assets, Sentora set up a dedicated market. That limits contagion risk if something goes sideways with FXRP pricing or liquidity. Sentora, the vault curator, ran extensive due diligence on FXRP before approving it. That process covered market behavior analysis, pricing oracle reliability, and broader risk ...