The layer 1 blockchain developer Flare announced on Aug. 3 that its FXRP token has been approved as collateral in Sentora's RLUSD Main vault on the Morpho lending protocol. Sentora is an inst
The layer 1 blockchain developer Flare announced on Aug. 3 that its FXRP token has been approved as collateral in Sentora's RLUSD Main vault on the Morpho lending protocol.
Sentora is an institutional DeFi strategy, intelligence, and risk management platform.
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What the development means is that XRP holders can convert their cryptocurrency into the FXRP token, bridge it to Ethereum, deposit it as collateral on Morpho, and borrow RLUSD.
With a market cap of $67 billion, XRP is the sixth-largest cryptocurrency.
RLUSD is a stablecoin that is pegged 1:1 to the U.S. dollar. It means the value of one RLUSD is the same as that of one dollar. It has a market cap of $1.5 billion.
The RLUSD Main vault holds $280M in deposited RLUSD and is the largest institutionally curated RLUSD vault on Ethereum.
“XRP is one of the largest and most liquid digital assets in the market," Sentora co-founder and CTO-CPO Jesus Rodriguez said. "By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”
Sentora said that it reviewed FXRP's market behavior, oracle design, liquidity, and liquidation mechanics before approving it as collateral.
The lending infrastructure runs on Morpho Blue, which uses isolated lending markets designed to contain risk if problems arise with a specific asset.
"This opens the door for much larger FXRP lending markets and for institutions that holds Billions of XRP to participate," Flare co-founder Hugo Philion said. "Good for XRP. Good for RLUSD. Good for Flare."
At the time of writing, XRP was trading at $1.07.
Related: U.S. judge behind landmark XRP ruling deals fresh blow
