XRP Gains Major DeFi Utility as FXRP Unlocks RLUSD Loans

XRP holders can now leverage their tokens to borrow Ripple’s RLUSD stablecoin through the FXRP token on Sentora’s institutional DeFi platform. Announced on August 3, the integration allows users to convert XRP into FXRP, bridge it to Ethereum, and deposit it as collateral in Sentora’s RLUSD Main vault on Morpho. The vault reportedly holds approximately $280 million in deposited RLUSD.

This move expands XRP’s utility beyond payments and transfers, giving holders access to onchain credit while retaining exposure to XRP. Jesus Rodriguez, Sentora co-founder and chief technology and product officer, said: “XRP is one of the largest and most liquid digital assets in the market. By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”

Borrowers access an isolated FXRP/RLUSD market within the vault, which uses Morpho Blue lending infrastructure. Each isolated market has its own collateral, debt asset, oracle, and liquidation loan-to-value ratio, limiting risk contagion.

The FAssets system creates FXRP as a one-to-one representation of XRP on EVM-compatible networks. Users start with an XRP transaction on the XRP Ledger; Flare verifies it and mints FXRP, enabling lending, trading, and other programmable uses. This gives XRP functionality its native ledger lacks, such as Ethereum-style smart contracts. Currently, users must mint FXRP on Flare, bridge it to Ethereum, then deposit into the market. Direct minting from XRP Ledger to Ethereum is under development.

FXRP had already entered DeFi before this vault, with holders deploying tokenized XRP in lending markets, liquidity pools, and yield strategies. Onchain data shows active deployment rather than idle holdings, strengthening XRP’s position as collateral. For long-term holders, RLUSD provides a dollar-denominated borrowing option that preserves XRP exposure, while lenders gain a diversified collateral market.

FXRP’s reach has also extended to Hyperliquid, where spot markets like FXRP/USDC and FXRP/USDH improve trading liquidity. Over 90 million XRP have reportedly been converted into FXRP, with nearly 80% of minted supply deployed in DeFi protocols.

Sentora initially set a conservative supply cap on the FXRP/RLUSD market, expected to expand as liquidity and usage grow. The firm evaluates collateral behavior, oracle reliability, and liquidation conditions before increasing exposure.

This integration marks a significant step for XRP in institutional credit markets, offering holders new ways to unlock liquidity without selling their assets.

Source: https://news.bitcoin.com/featured/xrp-gains-major-defi-utility-as-fxrp-unlocks-rlusd-loans/