Multiple outlets report that XRP holders can now borrow RLUSD on Ethereum without selling their XRP. The change comes through a new RLUSD lending vault worth about $280 million, which accepts Flare’s FXRP as collateral. According to the reports, FXRP has been approved for use in the vault, enabling users holding XRP-linked assets to access liquidity in Ethereum’s lending markets while retaining their exposure to XRP.
CoinDesk says the lending vault has not previously taken an XRP-linked asset, highlighting the novelty of FXRP being included. Decrypt similarly states that the approval allows XRP holders to borrow Ripple’s RLUSD on Ethereum. Both accounts describe the mechanism as borrowing against collateral rather than exchanging or liquidating XRP. The reports do not cite additional eligibility requirements, lending terms, or rates in the provided text. Overall, the development centers on the approval of FXRP as collateral within a large RLUSD lending pool on Ethereum, expanding the set of crypto assets that can back RLUSD borrowing.
