Flare has introduced a new decentralized finance use case for XRP by enabling holders to borrow Ripple’s RLUSD stablecoin on Ethereum without selling their XRP. The development follows the approval of FXRP as collateral within a $280 million lending vault on the Morpho protocol, marking another step in expanding XRP’s role across multichain decentralized finance.
According to Flare, the integration establishes institutional-grade credit rails for XRP on Ethereum, allowing users to supply FXRP as collateral and borrow RLUSD permissionlessly through infrastructure built with Sentora and Morpho.
FXRP Expands XRP Utility Beyond the XRP Ledger
FXRP is a decentralized representation of XRP created through Flare’s FAssets system. Unlike wrapped assets managed by centralized custodians, FAssets are designed to allow non-smart contract assets such as XRP to participate in decentralized finance while maintaining decentralized issuance.
Flare noted that FXRP utilizes the Omnichain Fungible Token (OFT) standard, allowing the asset to move across multiple blockchain networks.
Related: Ripple Adds Transfer Agency and Collateral Infrastructure to XRPL Ecosystem
This infrastructure already supports connectivity toward ecosystems including Ethereum, Base, and BNB Chain, creating additional opportunities for XRP holders to access lending markets, liquidity pools, and other decentralized financial applications.
The latest integration allows FXRP holders to use their XRP-backed assets as collateral while retaining exposure to XRP, eliminating the need to sell tokens to access liquidity.
Institutional DeFi Adoption Continues to Grow
The new lending functionality builds on growing activity within Flare’s decentralized finance ecosystem. According to figures recently shared by Flare’s leadership, the network currently supports approximately 155 million XRP, representing roughly $220 million in total value locked. Around 70% of minted FXRP has already been deployed across decentralized finance applications, including lending protocols, liquidity pools, and fixed-rate markets.
The approval of FXRP within Sentora’s RLUSD lending vault on Morpho further expands institutional access to XRP-backed financial products while integrating Ripple’s regulated stablecoin into decentralized lending markets.
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Rather than replacing the XRP Ledger, Flare positions its infrastructure as complementary, extending XRP’s functionality into smart contract ecosystems that enable lending, borrowing, collateral management, and cross-chain decentralized finance.
The latest integration demonstrates how XRP can increasingly be used as productive collateral while maintaining exposure to the asset, supporting Ripple’s broader vision of integrating RLUSD and XRP into institutional digital finance.
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