Flare says FXRP is now accepted as collateral in Sentora's RLUSD Main vault on Morpho, giving XRP holders a way to borrow Ripple's dollar stablecoin against wrapped XRP on Ethereum mainnet.

The new isolated FXRP/RLUSD market runs on Morpho Blue. According to Flare, Sentora's RLUSD Main vault holds about $280 million in deposited RLUSD, and FXRP is the first XRP-linked collateral approved for an institutionally curated RLUSD lending vault on Ethereum.

The current borrowing path is still technical. Users mint FXRP through Flare's FAssets system, bridge it to Ethereum, supply it as collateral, and manage the Morpho position themselves. Flare says it is developing a simpler route through Flare Smart Accounts that would let an XRP Ledger wallet authorize more of the flow with one signature.

For XRP, the significance is less about a new wrapper and more about credit access. XRP is one of the larger crypto assets by market value, but its DeFi use has historically been thinner than assets native to Ethereum and newer smart contract chains.

The approval does not remove market, bridge, liquidation, or smart contract risk. It does, however, put an XRP-backed borrowing market inside a large RLUSD vault rather than leaving FXRP only as a bridge asset looking for liquidity.