On Monday, the Flare network launched XRP borrowing through an integration with Morpho, letting FXRP holders access lending markets, earn yield, and borrow stablecoins and other assets. The move aims to turn XRP holdings into usable on-chain capital while keeping tokens on the ledger.
The lending and borrowing flows run through the Mystic interface, which aggregates curated vaults and displays risk parameters for users. Depositors can earn FXRP yield by placing tokens into curated vaults, or they can post XRP as collateral to borrow immediately.
Morpho’s deployment brings more than $10 billion in total value locked to Flare‘s ecosystem (Ed. note: This integration raises Morpho’s deployed TVL on Flare above $10 billion). Markets are modular and pair a single collateral asset with one loan asset to isolate risk.
At launch, FXRP joins FLR and USDT0 as supported assets, with independent curators such as Clearstar setting vault allocations and configurations. Flare designed the structure so problems in one market cannot spread to others.
The network keeps XRP on the XRP Ledger while unlocking on-chain utility via FXRP, allowing users to loop capital across staking, lending, and borrowing. Flare described the integration as advancing its XRPFi vision and called the token a “productive source of yield, credit, and composable strategy.”
