Flare: FXRP Borrowing of RLUSD Goes Live on Ethereum via Morpho - 18 Sep 2026
Flare has launched a feature allowing XRP holders to borrow RLUSD on Ethereum via Morpho, using XRP as collateral through Flare Smart Accounts. This process eliminates the need for manual bridging or new wallets, potentially increasing utility for FLR and demand for RLUSD.
How this was made

The 30-second read
Why it matters
The launch creates new demand for FLR, FXRP, and RLUSD tokens, potentially expanding DeFi lending volumes.
Market read
Introduces a novel cross-chain collateral mechanism that could influence token demand and DeFi lending activity.
What to watch
Regulatory scrutiny on cross-chain lending and stablecoin issuance may affect uptake.
Background
Flare introduced a non-custodial flow allowing XRP holders to use their assets as collateral for borrowing RLUSD on Ethereum via Morpho.
Market effects
May boost the DeFi lending sector on Ethereum by adding XRP-backed collateral.
Potentially increases cross-chain activity between XRPL and Ethereum ecosystems.
Adds a new use case for crypto collateral, relevant to global crypto markets.
Counterpoint
Adoption could be limited if users prefer native XRP bridges over Flare's solution.
Key entities
- protocolFlare Networks
Provides the Smart Accounts infrastructure for the new borrowing flow.
- platformMorpho
Ethereum lending market enabling the RLUSD borrowing.

