{"id":13974,"date":"2026-10-01T21:07:49","date_gmt":"2026-10-01T21:07:49","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13974"},"modified":"2026-10-01T21:07:49","modified_gmt":"2026-10-01T21:07:49","slug":"xrp-is-becoming-collateral-for-real-loans-and-the-first-market-is-already-dominated-by-whales","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13974","title":{"rendered":"XRP is becoming collateral for real loans and the first market is already dominated by whales"},"content":{"rendered":"

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XRP is beginning to support live dollar borrowing on Ethereum, though the market remains heavily concentrated among a handful of borrowers.<\/p>\n

A Morpho market backed by FXRP, a tokenized representation of XRP, had about 7.18 million RLUSD in outstanding loans against 10.76 million FXRP as of Oct. 1. The three largest addresses accounted for almost all of that debt, limiting how far the activity can be read as broad adoption.<\/p>\n

The market, launched in August through Flare, lets XRP holders mint FXRP, move it to Ethereum, and borrow Ripple’s RLUSD stablecoin without immediately selling their XRP exposure.<\/p>\n

That adds a new credit use case for XRP, but also introduces bridge, collateral, and redemption dependencies that borrowers do not face when holding native XRP directly.<\/p>\n

Three borrowers dominate XRP\u2019s emerging credit market<\/h2>\n

The early borrowing activity is heavily concentrated among a small number of participants.<\/p>\n

The three largest addresses account for 93% of roughly $7.2 million in outstanding debt, giving a handful of positions outsized influence over the market’s size. A large repayment could sharply shrink borrowing, while another loan from the same wallets could lift the total without bringing in many new users.<\/p>\n

\"Oct.\"Oct.<\/p>\n

The concentration may be even greater than the address count suggests. On-chain records identify wallets rather than their owners, so several addresses could belong to the same investor or institution.<\/p>\n

Funding is similarly concentrated. Sentora RLUSD Main supplied about 8.53 million RLUSD, providing nearly all of the liquidity available to borrowers at the time observed. Even so, the FXRP market represents only about 2.03% of Sentora’s broader vault allocations, leaving room to commit more capital if demand increases.<\/p>\n

Sentora can supply up to 10 million RLUSD under the current limit. That gives borrowers room to take on more debt, though the spare capacity says little about whether a wider group of XRP holders will actually use it.<\/p>\n

The same concentration could become more important if XRP price weakens.<\/p>\n

Morpho allows lenders to liquidate a position once the value of its debt rises above 77% of the collateral backing it. The three biggest borrowers remain well away from that point. Based on their current debt and collateral, the largest position could withstand roughly a 45% decline in the FXRP-to-RLUSD ratio, while the next two have buffers of about 38%.<\/p>\n