XRP holders can now borrow RLUSD on Ethereum through $280 million lending pool
Flare has enabled XRP holders to use their tokens as collateral to borrow RLUSD stablecoin through a $280 million lending pool managed by Sentora. This integration allows users to leverage their XRP holdings within the Ethereum decentralized finance ecosystem without selling their assets.
Why it matters
This development bridges the gap between the XRP Ledger and Ethereum DeFi, potentially increasing the utility and liquidity of XRP in institutional-grade lending markets.
Flare, the blockchain that lets XRP be used in decentralized finance, told CoinDesk on Monday that its wrapped version of the token has been accepted as collateral by Sentora, which manages a $280 million lending pool of Ripple's RLUSD stablecoin.
Borrowers post the wrapped XRP, called FXRP, and take out RLUSD against it.
The approval opens an isolated FXRP/RLUSD market on Morpho Blue where holders can borrow against XRP exposure rather than sell it. Access is permissionless with no whitelist required.
Sentora reviewed FXRP's market behavior, oracle design, liquidity and liquidation capacity under its institutional risk framework before signing off, and the asset will face the same ongoing monitoring as other collateral in the vault.
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