{"id":31178,"date":"2026-08-03T20:01:34","date_gmt":"2026-08-03T19:01:34","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/08\/03\/xrp-collateral-borrow-rlusd-ethereum\/"},"modified":"2026-08-03T20:01:41","modified_gmt":"2026-08-03T19:01:41","slug":"xrp-collateral-borrow-rlusd-ethereum","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/xrp-collateral-borrow-rlusd-ethereum\/","title":{"rendered":"XRP Holders Can Now Borrow RLUSD on Ethereum Without Selling Their Crypto"},"content":{"rendered":"\n

XRP holders now have a new financial lever at their disposal \u2014 without having to liquidate their positions. A $280 million<\/strong> lending vault has just gone live on Ethereum<\/strong>, with Flare<\/strong>‘s FXRP<\/strong> accepted as collateral.<\/p>\n\n\n\n

This integration marks a concrete milestone in the convergence between the XRP Ledger<\/strong> ecosystem and Ethereum DeFi<\/strong> \u2014 two worlds that have long remained siloed. Here is what it actually changes for holders.<\/p>\n\n\n\n

Behind this announcement lies an entire cross-chain collateralization<\/strong> mechanism taking shape, with direct implications for the liquidity and utility of XRP<\/strong> outside its native network.<\/p>\n\n\n\n

FXRP Approved as Collateral: What It Means in Practice<\/h2>\n\n\n\n

The FXRP<\/strong> token, issued by the Flare<\/strong> network, is a synthetic representation of XRP<\/a><\/strong> that is compatible with Ethereum<\/strong> smart contracts. Its approval as collateral in a $280 million RLUSD<\/strong> lending vault allows XRP<\/strong> holders to unlock stablecoin liquidity without touching their native exposure.<\/p>\n\n\n\n

The mechanism is straightforward: a user deposits FXRP<\/strong> as collateral and borrows RLUSD<\/strong> in return \u2014 the dollar-pegged stablecoin<\/a><\/strong> issued by Ripple<\/strong>, launched in late 2024. That RLUSD<\/strong> can then be deployed freely across the DeFi<\/strong> ecosystem: yield farming, debt repayment, arbitrage, or simply held in reserve while waiting for the right market opportunity.<\/p>\n\n\n\n

This type of structure, which has long been commonplace in DeFi<\/strong> for assets like ETH<\/strong> or wrapped BTC<\/strong>, was until now out of reach for XRP<\/strong> holders who wanted to maintain their exposure. The integration via Flare<\/strong> fills this structural gap by bringing XRP<\/strong> into the EVM<\/strong> environment without requiring a centralized bridge.<\/p>\n\n\n\n

Flare as a Bridge Between XRP Ledger and Ethereum DeFi<\/h2>\n\n\n\n

Flare<\/strong> has positioned itself since launch as a cross-chain connectivity<\/strong> infrastructure, with the explicit mission of bringing non-EVM assets \u2014 XRP<\/strong>, Dogecoin<\/strong>, Bitcoin<\/strong> \u2014 into the world of smart contracts. FXRP<\/strong> is one of the flagship products of that strategy.<\/p>\n\n\n\n

The approval of this collateral in an RLUSD<\/strong> vault represents a concrete validation of the model. It demonstrates that a lending protocol on Ethereum<\/strong> is willing to accept a cross-chain synthetic asset as collateral \u2014 which implies a degree of trust in Flare<\/strong>‘s liquidation mechanisms and price feed infrastructure, particularly its native oracle, the FTSO (Flare Time Series Oracle)<\/strong>.<\/p>\n\n\n\n

For XRP<\/strong> holders, the opportunity is twofold: accessing liquidity without triggering a taxable disposal event, and participating in Ethereum DeFi<\/a><\/strong> using an asset they already hold. In a context where XRP<\/strong> consistently ranks among the top 5 cryptocurrencies by market capitalization, the potential volume of mobilizable collateral is significant.<\/p>\n\n\n\n

RLUSD: Ripple’s Stablecoin Steadily Making Its Mark in DeFi<\/h2>\n\n\n\n

Officially launched in December 2024, RLUSD<\/strong> is a US dollar-backed stablecoin<\/strong> issued by Ripple<\/strong> on both the XRP Ledger<\/strong> and Ethereum<\/strong>. Its integration into third-party lending protocols marks an important step in its adoption strategy beyond the native Ripple<\/strong> ecosystem.<\/p>\n\n\n\n

By positioning itself as a borrowable asset within a $280 million<\/strong> vault, RLUSD<\/strong> is gaining credibility against established competitors such as USDC<\/strong> and DAI<\/strong>. The presence of a cross-chain collateral like FXRP<\/strong> also diversifies the vault’s collateral base, which can improve its resilience in the event of market stress concentrated on a single asset.<\/p>\n\n\n\n

This dynamic reflects a broader trend in DeFi<\/strong>: protocols are actively looking to expand their collateral base in order to attract new users and additional liquidity. For Ripple<\/strong>, every integration of this kind reinforces the perceived utility of RLUSD<\/strong> \u2014 a decisive factor for the long-term competitiveness of any stablecoin in increasingly fragmented markets. XRP Makes Its Mark in Hong Kong: OSL Launches First Regulated Retail Trading<\/a><\/p>\n\n\n\n

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