XRP holders can now borrow RLUSD on Ethereum using their coins as collateral — without selling them. The move comes through a $280 million lending pool that, until this week, had never accepted an XRP-linked asset.
How the pool works
The lending pool lets users deposit XRP as collateral and borrow RLUSD, a stablecoin pegged to the U.S. dollar. Borrowers keep their XRP exposure while gaining access to liquidity. The pool's total size is $280 million, and it operates on Ethereum.
For XRP holders, this is a new way to unlock value without triggering a taxable sale. It also brings XRP deeper into the Ethereum DeFi ecosystem, where it has historically played a smaller role compared to assets like ETH or WBTC. The vault's decision to accept an XRP-linked asset signals growing demand for cross-chain collateral options.
What changed
Before this week, the $280 million vault did not accept any XRP-linked assets. The integration required smart contract updates and risk assessments from the pool's operators. They determined that XRP's liquidity and price discovery made it suitable as collateral — a step that could open the door for other XRP-based lending products.
The pool is live now. Whether other lending protocols follow suit will depend on how the market reacts. For now, XRP holders have a new tool — and a reason to watch Ethereum's lending markets more closely.
