FXRP Collateral Expands Sentora's RLUSD Vault on Morpho
Borrow RLUSD against FXRP permissionlessly on Ethereum mainnet
Sentora has added FXRP as a collateral asset in its RLUSD Main vault on Morpho. A new isolated FXRP/RLUSD marketis live on Morpho Blue, and XRP holders can borrow RLUSD against FXRP without selling their XRP.
FXRP is the first form of XRP approved as collateral in an institutionally-curated lending vault on Ethereum mainnet. Sentora's RLUSD Main vault holds $280M in deposited RLUSD and is the largest institutionally-curated RLUSD vault on Ethereum.
At launch the flow is EVM-native. Users mint FXRP, bridge it to Ethereum, supply it as collateral, and manage the position themselves. A simpler path through Flare Smart Accounts is in development and described below.
Why this matters
FXRP reaches institutional RLUSD liquidity. This market connects FXRP to institutional RLUSD liquidity on Ethereum mainnet without moving capital out of Flare's orbit. FXRP is minted through FAssets, bridged, and posted as collateral, so borrowing demand on Ethereum drives minting demand back through FAssets.
The access is non-custodial and permissionless. No counterparty holds the collateral, no whitelist gates entry, and XRP holders keep full price exposure through FXRP while borrowing at their own LTV. The market opens with a conservative initial supply cap and scales as usage and liquidity grow, as Sentora does with any new collateral.
Stablecoin depth has been the practical ceiling on XRPFi. Strategies that borrow against FXRP are bounded by how much they can borrow, so capacity fills quickly and returns compress. Flare has seen what changes when depth arrives: network TVL moved from roughly $37M to over $120M within two weeks of USDT0's launch.
FXRP cleared Sentora's risk review. Sentora's mandate is risk-adjusted returns from carefully vetted collaterals. Their review covers how the collateral behaves, whether the oracle is reliable, and whether there is sufficient liquidity to handle liquidations and withdrawals. FXRP met that standard, and it is now subject to the same monitoring as every other collateral in the vault.
"XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure. FXRP closed part of it by making XRP programmable. This closes another part. 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, CEO, Flare
“XRP is one of the largest and most liquid digital assets in the market. 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.” Jesus Rodriguez, Co-Founder, CTO-CPO, Sentora
How the full stack works
The Sentora RLUSD Main vault is a MetaMorpho vault: a curator-managed vault built on top of Morpho Blue. The architecture splits responsibilities across three layers.
Morpho Blue is a permissionless lending primitive on Ethereum. Each market is defined by four parameters: collateral asset, debt asset, oracle, and liquidation LTV. Markets are isolated, which means any market specific issue remains isolated inside said borrow market and cannot cascade into other markets. This is structurally different from pooled lending designs like Aave.
Sentora curates the vault without taking custody of the RLUSD. Deposits sit in the MetaMorpho vault contract, and Sentora sets the allocation policy that contract follows.
Borrowers mint FXRP through the FAssets dApp on Flare, bridge it to Ethereum with Stargate, deposit it into the FXRP/RLUSD market, and borrow RLUSD against it up to the market's LTV. Borrowing is permissionless. Uses range from retail stablecoin carry to institutional treasury financing and on-chain liquidity sourcing.
How to borrow RLUSD using FXRP
1. Get FXRP on Flare. If you hold XRP, mint it into FXRP through the FAssets Portal. If you already hold FXRP, skip to the next step.
2. Bridge FXRP to Ethereum through the FAssets Portal, or via Stargate.
3. Supply FXRP into the FXRP/RLUSD Morpho market. Collateral is market-specific, so supplying to one market does not collateralize positions in another.
4. Borrow RLUSD against your FXRP up to the market's LTV. Interest accrues at the market's rate, which adjusts with utilization.
5. Monitor your loan-to-value ratio. If it exceeds the liquidation LTV, external liquidators can repay your debt and claim your collateral.
6. Repay the borrowed RLUSD plus accrued interest to withdraw your FXRP.
Direct FXRP minting from XRPL to Ethereum is under development and would remove the separate bridging step.
What comes next
Morpho markets are permissionless, so any XRP holder can post FXRP and borrow RLUSD today, and any wallet, exchange, or front-end can surface it without further approval.
Flare Smart Accounts will make that direct from XRPL, giving XRP holders access to the deepest stablecoin markets in crypto without ever touching Ethereum. An XRP holder signs on XRPL and gets RLUSD. Underneath, FXRP is minted, bridged, and posted as collateral, and the RLUSD is borrowed.
More is landing behind it. Sentora's approval gives other Morpho curators a reference point for evaluating FXRP at their own LTVs and caps, and every additional venue deepens the stablecoin liquidity available against XRP. Consumer and institutional front-ends are in development to put that access in front of XRP holders who will never open a DeFi interface.
This market is the first of those pieces.The rest are on the way.
About Flare
Flare is a Layer 1 blockchain designed to provide decentralized access to high-integrity data. Built on the Ethereum Virtual Machine, the network’s enshrined data protocols, including the Flare Time Series Oracle and Flare Data Connector, deliver cross-chain and real-world data to smart contracts without relying on centralized providers. Flare’s infrastructure includes FAssets for trust-minimized asset representation, Flare Smart Accounts for chain-abstracted execution, and Flare Confidential Compute for verifiable off-chain processing. For more information, visit flare.network
About Sentora
Sentora is an institutional DeFi strategy, intelligence and risk management platform. Formed through the merger of industry leaders in data and onchain solutions, Sentora manages the largest curated portfolio of DeFi vaults in the world, serving top-tier exchanges, custodians, and asset managers. Being one of the largest curators in DeFi and the strategy and risk partner behind earn programs like Kraken DeFi Earn, Sentora currently curates over $2B in assets in partnership with stablecoin issuers, centralized exchanges and FinTechs. For more information, visit sentora.com