EL7.AI
CryptoMediumUpdated×3•Originally published 3 August 2026•Updated 4 August 2026•
2 min read

XRP Holders Can Now Use Assets as Collateral to Borrow RLUSD on Ethereum

Key Facts

1Flare's FXRP has been approved as collateral in a $280 million RLUSD lending vault.

In a move that strengthens cross-chain interoperability within the crypto market, XRP holders can now utilize their assets as collateral to borrow Ripple’s RLUSD stablecoin on the Ethereum network. According to reports, Flare’s FXRP has been officially approved as collateral in a $280 million RLUSD lending vault. This integration is designed to allow investors to access decentralized finance (DeFi) liquidity without the necessity of selling their underlying XRP holdings.

This expansion enhances the utility of digital assets across different blockchains by linking the Ripple ecosystem with Ethereum’s highly active smart contract environment. The move increases the flexibility of stablecoins like RLUSD in decentralized lending markets. By utilizing FXRP—a Flare-based representation of XRP—holders can participate in major lending pools, effectively reducing the need for traders to liquidate their portfolios to obtain financing.

Looking ahead, market participants are monitoring the adoption rates of the new lending vault and its impact on cross-chain liquidity. According to the economic calendar, the market is awaiting broader sentiment cues from the US CB Consumer Confidence data, which previously stood at 92.2. Additionally, the Federal Reserve's interest rate policy, which held at 3.75% as of July 29, 2026, remains a primary driver for liquidity trends across both traditional and digital asset markets.

Latest Updates · 2

  1. Notable·

    Update: Ripple has expanded its digital collateral strategy by taking equity stakes in Zilo and Licuido. These investments are aimed at transforming idle tokenized fund shares into active collateral while enabling atomic settlement of assets via the XRP Ledger.

  2. Notable·

    Update: Ripple has broadened its strategic scope by investing in the ZILO and Licuido platforms, aiming to bridge the gap between blockchain and traditional banking services. The company's President noted that rising demand for the XRP Ledger is driving a fundamental shift in banking infrastructure, signaling a deeper integration of digital assets into the institutional financial system.