FXRP approved as collateral in Sentora's $280M RLUSD vault

FXRP was approved as collateral in Sentora's $280 million RLUSD vault on Morpho Blue, the first XRP representation cleared for institutional lending on Ethereum.

"XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing," Hugo Philion, Co-founder and CEO of Flare, said.

Sentora's RLUSD Main vault holds roughly $280 million in deposited RLUSD, making it the largest institutionally curated RLUSD vault on Ethereum. Users mint FXRP through Flare's FAssets system, bridge it to Ethereum via Stargate, and borrow RLUSD up to the permitted loan-to-value ratio. Access is non-custodial and permissionless, with no whitelist required.

The approval unlocks Ethereum's DeFi credit markets for XRP holders without requiring them to sell their positions. Flare is developing Smart Accounts to let XRP holders authorize transactions from an XRP Ledger wallet while the underlying infrastructure handles minting, bridging, and borrowing. Direct FXRP minting from XRPL to Ethereum is also under development.

Sentora evaluated FXRP under its institutional risk framework before approval, examining market behavior, oracle design, liquidity, and the asset's ability to support liquidations and withdrawals. The market opens with a conservative supply cap that may rise as usage and liquidity grow. FXRP now falls under the same ongoing monitoring as the vault's other collateral assets.

Morpho Blue's isolated design contains exposure. Each market carries its own collateral asset, debt asset, oracle, and liquidation threshold, so stress in one market stays inside it. Morpho held $6.898 billion in total value locked and $3.613 billion in active borrows in a June 22, 2026 DefiLlama snapshot.

RLUSD Liquidity Sits on Ethereum

The approval matters most for where RLUSD liquidity actually sits. Roughly 80 percent to 82 percent of RLUSD supply is on Ethereum, with the remainder on the XRP Ledger, and Ripple has extended the token across Ethereum Layer 2 networks including Optimism, Base, Ink, and Unichain.

FXRP has served as lending collateral before at a smaller scale. Enosys Loans launched the first XRP-backed stablecoin on Flare in December 2025 with an initial FXRP minting cap of $4 million. The Sentora market moves that collateral role onto Ethereum mainnet next to a deeper pool of stablecoin liquidity.

Jesus Rodriguez, Co-founder and CTO-CPO of Sentora, said the approval is about "bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets."

Several parameters remain undisclosed: the launch supply cap size, maximum loan-to-value ratio, liquidation threshold, and the oracle provider backing FXRP inside the market. Because Morpho markets are permissionless, wallets, exchanges, and other applications can integrate the market into their own interfaces. Borrowing activity on Ethereum can drive demand back through Flare's infrastructure since the collateral originates as an FXRP mint on Flare.

This article is for informational purposes only and does not constitute investment advice.