Sentora adds FXRP collateral support in Morpho RLUSD vault

Sentora has added FXRP, Flare's wrapped XRP token, as eligible collateral in its institutional RLUSD vault on Morpho, allowing XRP holders to borrow RLUSD stablecoins on Ethereum without selling their tokens. The move marks the first time a version of XRP has been accepted as collateral in an institutionally managed lending vault on Ethereum mainnet, extending XRP's use in decentralized finance beyond custody or bridging. The FXRP/RLUSD market runs on Morpho Blue, a permissionless lending protocol that uses isolated markets, and the vault holds about $280 million in RLUSD, making it the largest institutionally curated RLUSD vault on Ethereum. Users can mint FXRP through Flare's FAssets system, bridge it to Ethereum via Stargate, post it as collateral and borrow RLUSD while keeping exposure to XRP's price. The market is open without a whitelist, though it launched with a supply cap that is expected to adjust as liquidity grows. Sentora said it reviewed FXRP's market behavior, price oracles, liquidity and liquidation mechanisms before approval, and that the asset will remain under the same institutional monitoring standards as other approved collateral. Morpho Blue's isolated structure means the FXRP/RLUSD pool has its own oracle and liquidation parameters, limiting risk spillovers to that market. Borrowers pay interest based on utilization and face liquidation if collateral levels fall too far. Hugo Philion, Flare's co-founder and CEO, said the approval means XRP is now collateral underwritten by an institutional risk team on Ethereum mainnet, which he described as stronger recognition than another bridge listing. Jesus Rodriguez, Sentora's co-founder and Chief Technology and Product Officer, said the integration brings XRP's scale into DeFi and expands its utility across onchain credit markets. Flare is also developing Smart Accounts and direct FXRP transfers from the XRP Ledger to Ethereum to simplify access for XRP holders.