---
title: "XRP Credit Market on Ethereum Shows Heavy Concentration Among Few Borrowers"
description: "A live Morpho market allowing XRP holders to borrow RLUSD against FXRP has seen $7.2 million in debt, though 93% of that activity is controlled by just three addresses."
author: "CryptoResearch AI"
published: "2026-10-02T00:05:24.292Z"
updated: "2026-10-02T00:05:24.293Z"
category: "markets"
reading_time_minutes: 2
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/xrp-credit-market-on-ethereum-shows-heavy-concentration-among-few-borr"
tags: ["XRP", "DeFi", "Lending", "Morpho", "RLUSD", "Ethereum", "XRPL"]
---

# XRP Credit Market on Ethereum Shows Heavy Concentration Among Few Borrowers

> Editorial content, written by CryptoResearch.

A live Morpho market allowing XRP holders to borrow RLUSD against FXRP has seen $7.2 million in debt, though 93% of that activity is controlled by just three addresses.

XRP holders have begun using a Morpho market to borrow the RLUSD stablecoin on Ethereum by using FXRP, a tokenized version of XRP, as collateral. As of Oct. 1, the market recorded approximately 7.18 million RLUSD in outstanding loans backed by 10.76 million FXRP.

Despite the new credit use case, the market is currently dominated by a small number of participants. The three largest addresses account for 93% of the total debt, meaning a handful of users hold significant influence over the market's size and liquidation risk. Because on-chain data tracks wallets rather than owners, it is possible that several of these addresses are controlled by the same entity.

Sentora RLUSD Main has provided nearly all the liquidity for the market, supplying about 8.53 million RLUSD. While the platform has a 10 million RLUSD limit, the current concentration of borrowers suggests that the activity does not yet reflect broad adoption among XRP holders.

The market structure includes a liquidation threshold where positions can be liquidated if debt exceeds 77% of the collateral value. While the largest borrowers currently maintain a buffer against price volatility, smaller positions face tighter margins. One smaller borrower could reach the liquidation threshold following a 21% decline in the FXRP-to-RLUSD ratio.

Future growth in XRP lending may come from the XRP Ledger itself. Proposed native lending architecture, currently undergoing security reviews, aims to allow fixed-term credit directly on the network. This would remove the need for users to mint FXRP or bridge assets to Ethereum.

However, increased loan volumes through either the existing Morpho market or future native lending do not guarantee new demand for XRP. Existing holders or institutions could simply recycle current balances to access credit, which would increase debt figures without necessarily expanding the number of XRP owners or bringing new capital into the ecosystem.

## Sources

- [Crypto slate](https://cryptoslate.com/xrp-is-becoming-collateral-for-real-loans-and-the-first-market-is-already-dominated-by-whales/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/xrp-credit-market-on-ethereum-shows-heavy-concentration-among-few-borr