Despite a choppy market environment, Ripple is executing a series of strategic moves to expand the XRP Ledger’s DeFi ecosystem. Recent partnerships have enabled XRP holders to use their tokens as collateral via the FXRP bridge, unlocking liquidity on Ethereum mainnet without selling their assets. On-chain data shows a recovery in stablecoin liquidity, with Ripple minting nearly 63 million RLUSD to push the XRPL stablecoin market cap back above $950 million. However, XRP’s price action remains weak, trading near a key support level with Q3 gains of just over 4%.
Ripple has been building the foundation for XRP’s year-end outlook through a series of partnerships since the start of August. The institutional DeFi platform Sentora has announced that FXRP is now live as collateral in Sentora’s RLUSD vault on Morpho. Through the Sentora-Flare Networks partnership, XRP holders can now use FXRP as collateral, taking XRP into Ethereum mainnet DeFi.
Analysts note that XRP holders can now mint FXRP, bridge it to Ethereum, use it as collateral, and borrow RLUSD while maintaining their XRP exposure. Holders no longer need to swap their XRP for RLUSD to access liquidity, instead putting their XRP to work within DeFi.
This development ties into another major upgrade from Ripple. RippleX Head of Product Jazzi Cooper revealed that the upcoming XRPL 3.3.0 upgrade will bring ZK-powered privacy for tokenized assets, focusing on institutional users.
The timing of these moves aligns with on-chain activity. XRPL’s stablecoin market cap recently fell by more than 14% in 24 hours, with RLUSD accounting for nearly all the decline. Sentiment has since improved, as data shows Ripple recently minted nearly 63 million RLUSD, pushing the stablecoin market cap back above $950 million for an 11% recovery.
The rebound came after Ripple’s “back-to-back strategic moves”, suggesting the company is actively working to grow liquidity across XRPL. Bringing FXRP into Ethereum DeFi and expanding support for tokenized assets both point to increasing on-chain activity. From a technical standpoint, XRP has yet to catch up, as the token continues to trade near a key support level with Q3 gains at just over 4%.
