Flare’s FXRP/RLUSD market hits $1M in borrowing within hours of launch as supply cap set for expansion

Flare, the Layer 1 blockchain, has shared new details on its FXRP/RLUSD lending market on Morpho, revealing that $1 million in RLUSD was borrowed against FXRP collateral within hours of going live. 

The update follows the approval of FXRP as the first XRP-based collateral in Sentora’s $280 million institutionally curated RLUSD vault on Ethereum mainnet.

The market launched with a 5 million RLUSD supply cap, which Flare intentionally seeded with 1 million RLUSD. That amount was fully borrowed within hours of launch. Risk clearance has already been approved to expand the supply cap to approximately 9 million RLUSD.

Supply, collateral, and oracle details emerge post-launch

Around 150 million FXRP is currently in circulation, with approximately 34.5 million FXRP already serving as collateral on Mystic Finance, Flare’s native Morpho deployment. The new FXRP/RLUSD market is distinct as an institutionally curated Sentora market on Ethereum.

FXRP pricing on Flare is secured by Flare’s FTSOv2 oracle, while the Ethereum market uses Sentora’s ChainlinkOracleV2 pricing infrastructure.

The rapid uptake highlights immediate demand for XRP-backed stablecoin liquidity without requiring holders to sell their assets.

Featured image via Shutterstock.

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