XRP holders can borrow RLUSD through 280 million USD lending pool

XRP holders can now borrow RLUSD on Ethereum without selling their coins. Flare announced that its wrapped XRP, FXRP, has been accepted as collateral by Sentora, which manages a 280 million USD lending pool of Ripple's RLUSD stablecoin. Borrowers can post FXRP and take out RLUSD against it. This approval creates an isolated FXRP/RLUSD market on Morpho Blue, allowing holders to leverage their XRP exposure. Access is permissionless with no whitelist required. Sentora evaluated FXRP's market behavior and liquidity before approval, ensuring ongoing monitoring. Users can mint FXRP via Flare's FAssets system, bridge it to Ethereum, and deposit it to borrow at their chosen loan-to-value ratio. Flare is developing a route for holders to authorize the process directly from an XRP Ledger wallet. Flare co-founder Hugo Philion noted that XRP is underutilized in DeFi despite being a major crypto asset. The isolated market structure limits risks, as failures in the FXRP market do not affect the broader vault. Approximately 155 million FXRP has been minted since launch, with a target of drawing 5 billion XRP into Flare's ecosystem over six months. The new market starts with a conservative supply cap that may increase with usage.

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