XRP holders can now borrow dollars against their XRP without parting with it 🪙

XRP holders can now borrow Ripple's RLUSD stablecoin against their tokens on Ethereum without selling their holdings, after Flare's FXRP was approved as collateral in Sentora's RLUSD Main vault. The integration, announced Monday by layer 1 blockchain developer Flare, allows users to convert XRP into Flare's FXRP token, bridge it to Ethereum, deposit it as collateral on the Morpho lending protocol, and borrow RLUSD. Because the loan is backed by collateral rather than a sale, borrowers keep their exposure to XRP's price while gaining access to dollar-pegged liquidity.

"XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure," co-founder and CEO of Flare Hugo Philion said in a statement. "XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing." The structure mirrors Wrapped Bitcoin (WBTC), which lets Bitcoin holders deploy their $BTC in Ethereum-based decentralized finance without selling it, and applies the same approach to XRP for Ethereum lending markets.

Lending is conducted through Morpho Blue, which uses isolated lending markets designed to contain risk if a problem arises with a specific asset. Sentora said it reviewed FXRP's market behavior, oracle design, liquidity, and liquidation mechanics before approving it as collateral. The launch extends Ripple's push to position RLUSD as an enterprise-focused stablecoin: in August 2024, Ripple began testing RLUSD on Ethereum and the XRP Ledger for cross-border payments, and in December 2024 the company received approval from the New York Department of Financial Services ahead of the stablecoin's launch. Last month, Mastercard said it will support settlement of regulated stablecoins including RLUSD, Circle's USDC, and SoFi's SoFiUSD.

"Sentora just took a major step to make XRP useful onchain," Co-Founder and CTO-CPO of Sentora Jesus Rodriguez wrote on X. "XRP is one of crypto's largest and most liquid assets. Yet it remains surprisingly underused in onchain credit. That changes today."

Separately, 1inch opened Aqua, its shared DeFi liquidity layer, to all users, eight months after releasing it to developers only. The protocol went live on Tuesday across 13 EVM chains, including $ETH mainnet, Arbitrum, Base, BNB Chain and Robinhood Chain, and operates as a registry rather than a pool in which a provider approves a token balance and creates positions that draw on it.

Also this week, Lorenzo Valente, director of digital assets research at ARK Invest, said on X that traders on Hyperliquid had for the first time moved more money through stocks and commodities than through crypto, adding, "We are entering a new era for DeFi."