XRP Gains Significant Practical Significance in DeFi as FXRP Opens Access to RLUSD Loans
XRP Gains Practical DeFi Significance as FXRP Enables RLUSD Loans
On August 3rd, the institutional DeFi platform Sentora announced that FXRP has been added to its main RLUSD vault on Morpho, opening a new path for XRP holders to access on-chain loans. Investors can convert XRP to FXRP, bridge it to Ethereum, and borrow the Ripple stablecoin RLUSD while maintaining their XRP exposure.
This integration significantly expands XRP's financial utility beyond payments, particularly for holders seeking liquidity without selling their assets. FXRP is the first XRP representation accepted as collateral in an institutional-grade lending vault on Ethereum. The vault reportedly holds around $280 million in deposited RLUSD.
Jesus Rodriguez, CTO and Head of Product at Sentora, highlighted that adding FXRP as collateral brings XRP's scale into DeFi and extends its practical use to on-chain credit markets. Borrowers access an isolated FXRP/RLUSD market within the vault using Morpho Blue infrastructure, which limits cross-market risk.
The FAssets system creates FXRP as a 1:1 representation of XRP that functions on EVM-compatible applications, giving XRP programmable functionality its native ledger wasn't designed for. The process currently involves minting FXRP on Flare and bridging to Ethereum, with direct minting from the XRP Ledger to Ethereum in development to streamline the process.
FXRP's presence in DeFi was already growing prior to this integration, with holders using the tokenized asset in lending markets, liquidity pools, and yield strategies. Network data shows active use of FXRP in DeFi protocols, demonstrating real demand and utility. For long-term holders, access to RLUSD creates dollar-denominated financing opportunities while maintaining their XRP position.
FXRP's expansion also includes new spot markets on Hyperliquid (FXRP/USDC and FXRP/USDH), enhancing trading access. Reportedly, over 90 million XRP has been converted to FXRP, with nearly 80% of the minted supply deployed in DeFi protocols. Sentora has set an initial conservative supply limit for the FXRP/RLUSD market, with plans to expand it based on liquidity and usage growth.
cryptonews.ru08/07 09:14