Tuesday, August 4, 2026 · XRPTRACER news
By XRPTRACER Research Team
FXRP, Flare's wrapped version of XRP, has been approved as collateral in Sentora's RLUSD vault on Morpho, a lending pool holding about $280 million of Ripple's stablecoin. That opens an isolated FXRP/RLUSD market on Ethereum where XRP holders can borrow RLUSD without selling their XRP. It's the first XRP-linked asset the vault has accepted, according to CoinDesk.
XRP market moves
XRP opened August 4 (00:00 UTC) at about $1.07, with a market cap near $67.2B (CoinGecko daily history). That's slightly below yesterday's open of about $1.09, so the bounce off $1.05 has stalled for now. Resistance is still the $1.10–$1.14 zone.
How it works
The vault. Sentora manages the RLUSD Main vault on Morpho Blue, a lending protocol where each market is isolated: it has its own collateral, debt asset, price oracle and liquidation threshold. If something goes wrong in the FXRP market, it stays in that market and doesn't spread to the rest of the vault.
The review. Sentora says it assessed FXRP's market behavior, oracle design, liquidity and liquidation capacity under its institutional risk framework before approving it. FXRP gets the same ongoing monitoring as other collateral.
The steps today. Per CoinDesk, borrowing currently takes several steps:
- Mint FXRP from XRP through Flare's FAssets system
- Bridge it to Ethereum through Stargate
- Deposit it into the FXRP/RLUSD market on Morpho
- Borrow RLUSD at a chosen loan-to-value ratio
Access is permissionless; there's no whitelist. Flare says it's building a route through Smart Accounts so a holder can approve the whole flow from an XRP Ledger wallet, plus direct minting from XRPL to Ethereum.
Question everything
The vault is big; the XRP side isn't yet. CoinDesk reports about 155 million FXRP minted since launch, against Flare CEO Hugo Philion's stated goal of bringing 5 billion XRP into Flare's ecosystem over six months. The new market also opens with what Flare calls a "conservative supply cap." CoinDesk says it asked for the cap, the loan-to-value ratio, the liquidation threshold and the oracle source; those weren't public at the time of writing. So "$280M vault" isn't the same as "$280M available to XRP borrowers."
What people are talking about
On X, the XRP DeFi crowd is calling this the first time an institutional risk team has underwritten XRP on Ethereum mainnet, which is how Philion put it to CoinDesk. The skeptics' point is the bridging: XRP has to leave the XRP Ledger, get wrapped on Flare and then bridged to Ethereum before it can be used. Each step adds smart contract and bridge risk. Both points stand.
On-chain data
- XRP price: about $1.07 at 00:00 UTC (CoinGecko)
- Sentora RLUSD vault: about $280M in RLUSD (CoinDesk, Flare)
- FXRP minted since launch: about 155M (CoinDesk)
- FXRP/RLUSD market supply cap, LTV, liquidation threshold: not disclosed
Flows and macro
US spot XRP ETFs had a flat session on August 3 ($0 net, per XRP Insights) after closing July at about +$28.8M. Ripple's August escrow cycle left the usual 300M XRP net outside escrow after a 700M re-lock. Yesterday Ripple announced investments in tokenization firms ZILO and Licuido.
What to watch next
- The supply cap, and how fast it fills
- FXRP minted, a direct read on whether this pulls XRP into DeFi
- Smart Accounts one-click borrowing going live
- Direct XRPL-to-Ethereum minting, which removes a bridge step
- Liquidations if XRP retests $1.00
The XRPTRACER take
This gives XRP holders a real new option: borrow a regulated dollar stablecoin against XRP instead of selling it. The isolated market design is sensible. Usage is still small, and the multi-step bridge path is a real risk that new users should understand before depositing. We're logging the approval on the Catalyst Tracker and watching FXRP supply on the Dashboard.
Sources: CoinDesk: XRP holders can borrow RLUSD on Ethereum · Flare: FXRP collateral expands Sentora's RLUSD vault · Sentora: FXRP live in RLUSD vault · Decrypt: borrow RLUSD without selling · CoinGecko XRP history · XRP Insights ETF flows
Price is CoinGecko's daily snapshot at 00:00 UTC on August 4, 2026. ETF flows through August 3.
Not investment advice. See our Disclaimer.
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