Hugo Philion, co-founder and CEO of Flare, said Sentora, a major DeFi resource and risk management platform, approved FXRP as an eligible collateral asset.
Philion made the comments in a recent interview with Paul Barron on the Paul Barron Network, where they discussed $XRP’s growing use in decentralized finance.
During the interview, Paul Barron noted that $XRP ranks around fourth among cryptocurrencies by market capitalization, with a market value of about $70 billion.
However, he pointed out that $XRP does not yet have the same role in on-chain lending as Ethereum. According to him, wrapped Bitcoin and stablecoins have already shown how crypto assets can be used as collateral in DeFi.
Barron said this could allow large amounts of idle capital to become more useful. He then asked Philion whether this new use case could help expand $XRP’s market base.
Flare Expands $XRP Lending
Philion said he believes the development should help expand $XRP’s market base. He also said Flare has played a leading role in making $XRP a collateral asset and has so far seen strong results in this area.
According to Philion, this progress benefits the $XRP community, Ripple, and investors who see $XRP as an asset worth holding.
The Flare CEO then highlighted the difference between Flare’s current lending setup and the upcoming XLS-66 protocol.
He explained that Flare’s integration with Morpho on mainnet and Sentora allows users to borrow RLUSD, with other stablecoins potentially added later, using $XRP as collateral.
With this, a user could provide $1.50 worth of $XRP and borrow $1. He said this gives $XRP holders a direct way to put their tokens into a lending market and borrow against them.
However, XLS-66 works differently because it focuses on uncollateralized lending. This method would allow borrowers to arrange their credit rating or payment guarantee off-chain.
As a result, Philion said XLS-66 does not provide the same function as Flare’s system, where users can use $XRP to borrow dollars. He added that Flare plans to keep expanding this market and develop more products around $XRP as collateral.
FXRP Addresses Bridge Risks
Barron then called attention to the risks involved in using other crypto assets in DeFi. According to him, there are extra risks that can come from wrapping agents and F-assets, as well as the bridge risks involved when assets move between networks. He asked Philion what Flare had done to reduce these risks.
Responding, Philion said scams remain one of the biggest risks users face, especially on Twitter (now X), where fake accounts often pretend to represent Flare and other projects. As for the bridge itself, he said Flare has tested it extensively and designed its structure with security in mind.
Philion then mentioned Sentora’s review as an important sign of confidence. He said Sentora spent several months carrying out due diligence on FXRP, while many of its partner exchanges also reviewed the asset.
The reviews covered how the bridge operates and how FXRP moves onto Ethereum. After completing those checks, Sentora approved FXRP as an eligible collateral asset.
Philion noted that the decision was a major sign of confidence because Sentora ranks among the largest curators in the DeFi sector.
Because losses could directly affect its business, the Flare co-founder said Sentora has a strong reason to examine the risks carefully before supporting an asset. As a result, he saw its approval of FXRP as an important vote of confidence.
FXRP Expands Across DeFi
FXRP launched on the Flare mainnet on September 24, 2025, as the first asset under the FAssets protocol. Flare initially capped minting at 5 million tokens during the first week, which filled almost immediately.
By February 2026, FXRP’s circulating supply had passed 100 million tokens, worth about $140.10 million at the time. Users had minted the tokens through 38,030 transactions, with more than 60% of the supply staked in Flare-native DeFi protocols.
Flare also launched the first $XRP spot market on Hyperliquid in January 2026 through an FXRP/USDH pair. FXRP later expanded to the Yellow Network and Coinbase’s Base chain. At press time, Flare held nearly $150 million worth of $XRP tokens, while $58 million remained staked on Firelight.
