FXRP added as collateral in Sentora's $280M RLUSD vault on Morpho
DeFi & Yields ·
XRP holders can now borrow RLUSD on Ethereum against FXRP collateral, marking the first time an XRP-linked asset has entered an institutional lending vault on the network.
Flare's wrapped token, FXRP, has been cleared for use as collateral inside Sentora's RLUSD vault on Morpho, opening a route for XRP holders to tap Ethereum credit markets while retaining their original position, according to CryptoPotato. The vault, which Sentora approved for FXRP on August 3, 2026, holds roughly $280 million in RLUSD and now runs a separate FXRP/RLUSD market built on Morpho Blue.
To participate, users mint FXRP through Flare's FAssets mechanism, move it onto Ethereum via Stargate, and then post it as collateral to draw RLUSD, keeping their exposure to the underlying XRP intact. Access to the market does not require a whitelist, though a supply cap has been set for launch and is expected to be adjusted as liquidity in the pool builds.
Before greenlighting FXRP, Sentora carried out a review spanning market behavior, oracle reliability, liquidity depth, and liquidation processes, and the asset will remain under the same ongoing monitoring applied to other collateral types it supports. Because Morpho Blue segments each market individually, risk tied to the FXRP/RLUSD pool is contained to that pool alone, with its own oracle feed and liquidation settings; borrowers pay interest tied to utilization and must keep sufficient collateral to avoid being liquidated.
The rollout is also being covered separately by Decrypt, underscoring that the mechanism lets XRP holders access RLUSD liquidity on Ethereum without liquidating their holdings. Flare is additionally building Smart Accounts meant to let users complete the entire process from an XRP Ledger wallet, alongside a planned direct transfer path for FXRP between XRP Ledger and Ethereum that would bypass current bridging steps.
What remains unclear is how the initial supply cap will be recalibrated as demand grows, and how utilization and liquidation activity in the new FXRP/RLUSD pool will behave once trading volume increases. The timeline for Flare's Smart Accounts and the direct XRP Ledger-to-Ethereum transfer feature has also not been specified.