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XRP holders can now borrow RLUSD stablecoins on Ethereum. Sentora made it official on August 3, adding FXRP as collateral in its RLUSD Main vault on Morpho — and the vault already holds around $280 million in RLUSD deposits.
It’s a pretty big deal for XRP’s role in decentralized finance. For years, XRP sat mostly outside the DeFi conversation. The XRP Ledger’s architecture doesn’t natively support the kind of programmable smart contracts that power Ethereum lending markets, so XRP holders basically had to stay on the sidelines or sell into other assets to access DeFi yields. FXRP changes that. It’s a one-to-one representation of XRP, created through the FAssets system on Flare, and it’s now accepted as collateral in what Sentora calls an isolated FXRP/RLUSD market — the first time an XRP representation has landed inside an institutional Ethereum lending vault of this size. The isolated structure matters: each market within the vault carries its own collateral rules, debt assets, and liquidation ratios, so trouble in one corner can’t easily bleed into the rest.
FXRP is the first XRP-linked token accepted as collateral in a vault of this scale.
How the Minting Process Actually Works
Getting FXRP isn’t instant. A user starts with XRP on the XRP Ledger, that transaction gets verified by Flare, and then FXRP gets minted. After that, the user bridges FXRP over to Ethereum and deposits it into the isolated market to borrow RLUSD. That’s three steps, maybe four if you count the original XRP transfer — not exactly frictionless. Sentora and Flare know this. Direct minting from the XRP Ledger straight to Ethereum is apparently under development, which would cut out the bridging step entirely. No timeline was given, so unclear yet when that lands.
Still, even with the current multi-step flow, adoption seems real. Over 90 million XRP has reportedly been converted into FXRP, and nearly 80% of the minted supply is actively deployed in DeFi protocols. That’s not idle capital sitting in wallets. FXRP holders are putting it to work — lending, trading, yield strategies. That kind of utilization rate is hard to fake, and it probably tells you more about genuine demand than any press release would.
RLUSD, for context, is a stablecoin tied to Ripple. Borrowing it against FXRP means XRP holders can access dollar-denominated liquidity without selling their XRP. For long-term holders — the kind who’ve been sitting on XRP through multiple market cycles — that’s a meaningful option. You keep your exposure, you get liquidity. It’s the same basic logic behind any collateralized loan, just onchain.
Hyperliquid Entry and What Sentora Is Watching
FXRP’s reach isn’t limited to Morpho. It’s also moved into Hyperliquid, where the first FXRP spot market paired FXRP with USDC. A second market, FXRP/USDH, followed, broadening the trading options available across the XRP Ledger, Flare, and HyperEVM. Connecting XRP liquidity to decentralized trading infrastructure like Hyperliquid is a different kind of expansion than lending — it’s about price discovery and position management, not just borrowing power. Traders now have more ways to express a view on XRP-linked assets without touching the XRP Ledger directly.
Back on the lending side, Sentora started with a conservative supply cap for the FXRP/RLUSD market. That’s pretty standard practice for a new collateral type. The firm says it’s watching collateral behavior and withdrawal conditions before raising exposure limits. It’s the kind of careful rollout that institutional vault operators tend to prefer, especially when onboarding an asset that bridges two different networks. One bad liquidation cascade in a new market can do real reputational damage — so the caution makes sense even if it slows things down.
What’s worth watching is whether the supply cap moves. Sentora said it expects the cap to grow as liquidity and usage increase. If utilization stays high and the market behaves cleanly through a few volatility cycles, a cap raise seems likely. But no specific number or date was given.
The broader picture here is that XRP, long dismissed as a pure payments token with limited programmability, is quietly building a DeFi footprint. FXRP’s presence in onchain lending markets and yield strategies predates the Sentora vault — the Morpho integration is a step up in institutional visibility, not the starting point. And with 90 million XRP already converted and the vast majority of that supply actively deployed, the infrastructure is getting real usage, not just headlines.
Sentora’s vault currently holds around $280 million in RLUSD deposits.
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Frequently Asked Questions
What is Sentora’s RLUSD Main vault on Morpho?
It’s an Ethereum-based lending vault holding around $280 million in RLUSD deposits, where XRP holders can deposit FXRP as collateral to borrow RLUSD stablecoins.
How does someone convert XRP into FXRP to use in the vault?
Users send XRP on the XRP Ledger, Flare verifies the transaction and mints FXRP, then the user bridges FXRP to Ethereum and deposits it into the isolated FXRP/RLUSD market on Morpho. Direct minting to Ethereum is under development.
