Flare is a layer 1 blockchain designed for data-intensive tasks. It works with prominent crypto firms, including Elliptic, Ankr, and Arkham. Flare is well-known for its involvement with the XRP network. Its FAssets make non-smart contract assets programmable. For example, FXRP is Flare’s representation of XRP, built with Ethereum Virtual Machine (EVM) support and backed 1:1 by XRP holdings.
Sentora is a provider of institutional Decentralized Finance (DeFi) and risk management solutions. It curates over $2 billion in assets through partnerships with stablecoin issuers, centralized exchanges, and fintech firms, amongst others. The company has worked with Kraken to develop risk infrastructure and strategy for Kraken’s DeFi Earn product.
Morpho is an innovative crypto credit network. It provides businesses, fintech firms, and Decentralized Applications (dApps) with access to global liquidity and helps them develop features such as custom earn products and crypto loan systems.
On August 3, 2026, Flare announced that its FXRP token is now approved collateral in Sentora’s RLUSD Morpho vault, which has around $280 million in deposits.
The update creates a new market in which XRP holders can borrow RLUSD using Flare’s FXRP as collateral directly on the Ethereum mainnet. It provides flexibility for investors, enabling people to mint FXRP, bridge it to Ethereum, and use it as collateral to borrow RLUSD without selling the underlying XRP.
Flare’s Co-founder and CEO, Hugo Philion, had this to say:
“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.”
How Does The Vault Work?
Flexibility is core to the market’s operation. Access is non-custodial and permissionless. Users manage Loan-to-Value (LTV) ratios and retain XRP exposure throughout the minting/bridging/collateral process, helping to minimize taxable events.
The FXRP/RLUSD market is built on Morpho Blue, an Ethereum-based lending protocol. Markets are isolated. Each one has its own collateral asset, debt asset, oracle, and liquidation threshold, which helps control risk and asset exposure.
Moreover, Sentora evaluated FXRP under its institutional risk framework before allowing it to be used as collateral. Scope is broad, covering liquidation/withdrawal support, market behavior, oracle design, and liquidity. As part of its collateral usage, FXRP will continually undergo the same monitoring as other vault assets.
Looking Forward
Sentora’s support for FXRP as collateral generates value across multiple ecosystems. XRP tokens get locked, capital flows into Flare, gets bridged to Ethereum, and is deposited into a vault on Morpho, boosting XRP demand and network activity. Although currently minor, this flow could contribute to a notable uptick as the system’s popularity grows.
At present, a technical hurdle is hampering adoption. Users must mint FXRP on Flare, bridge it to Ethereum via Stargate, and deposit it into the Morpho FXRP/RLUSD market to borrow RLUSD. However, Flare is developing a streamlined route that leverages its Smart Accounts, in which minting, bridging, and collateral deployment are handled automatically by the underlying infrastructure.
Once the flow is simplified, Flare and Sentora could see a significant influx of users/deposits, possibly pushing the market beyond its current conservative supply cap. However, it could be raised if demand dictates. XRP is one of the most active crypto networks. With Flare and Sentora enhancing its utility, it’s worth keeping an eye on them as the FXRP/RLUSD vault matures.
Jesus Rodriguez, Co-founder and CTO-CPO of Sentora, had this to say:
“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 on-chain credit markets.”
With over half a decade of experience commentating on the cryptocurrency market and even more as a trader and investor, Jay has developed a robust knowledge base that enables him to dive deep into the inner workings of crypto platforms and the broader market to deliver unique, user-focused insight.
Jay's work has spanned public relations firms, crypto projects, affiliate sites, and news outlets.
