XRP holders can now borrow Ripple's RLUSD stablecoin on Ethereum without selling their XRP. The move comes via Flare's FXRP token, which has been approved as collateral in a $280 million lending vault. That vault effectively bridges XRP liquidity into Ethereum's lending markets for the first time.
How the vault works
Flare's FXRP is a tokenized representation of XRP on the Flare network. It's now accepted as collateral for loans denominated in RLUSD, Ripple's own stablecoin. The vault is sized at $280 million, giving XRP holders a dedicated pool to borrow against. The loans happen on Ethereum, meaning users interact directly with Ethereum's DeFi infrastructure.
Until now, getting stablecoin liquidity from XRP usually meant selling the token first — triggering a taxable event and losing exposure to price moves. This vault changes that. XRP holders can borrow RLUSD without selling, keep their XRP, and still use the stablecoin for trading, yield farming, or just holding. It also opens up Ethereum's broader lending ecosystem to XRP holders who might not have touched it before.
The role of Flare
Flare's whole pitch is making assets like XRP usable on other chains. FXRP is the bridge. Getting it approved as collateral in a $280 million vault is a concrete win — not just a testnet promise. It shows Flare's infrastructure can handle real money and real demand. For Ripple, it's a way to push RLUSD into DeFi without forcing XRP holders to exit their position.
The vault is live now. XRP holders can start borrowing RLUSD through Flare's platform immediately. No word yet on whether the vault will expand to other assets or chains, or if other protocols will adopt similar FXRP-based models. The big open question is how quickly borrowers show up — and whether the $280 million cap will be enough to meet demand.
