Sentora added FXRP as eligible collateral on the Morpho lending protocol on August 3, enabling XRP holders to borrow Ripple’s RLUSD stablecoin without selling their tokens. FXRP, a wrapped version of XRP issued by the Flare network, was integrated for the first time into an institutional vault on Ethereum mainnet. The mechanism relies on over-collateralization: borrowers must deposit more FXRP than the RLUSD value borrowed, providing a safety margin that protects lenders in case of a sharp XRP price drop. However, Ripple and Flare, both strategic investors in Sentora, raise questions about the neutrality of the collateral quality assessment it conducts.
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