XRP is becoming collateral for real loans and the first market is already dominated by whales
A Morpho market on Ethereum lets XRP holders use bridged FXRP as collateral to borrow RLUSD. As of Oct. 1, it had about $7.18 million in loans against 10.76 million FXRP, but three borrower addresses held 93% of the debt, while one supplier provided nearly all available liquidity. The market had some September liquidations but no bad debt; its largest positions had substantial liquidation buffers. Concentration means a few repayments, loans, or liquidations could sharply change market activity, and wallet addresses may mask shared ownership. The arrangement also relies on bridging and redemption. Proposed lending on the XRP Ledger is under security review and could offer direct, fixed-term credit, testing whether easier access broadens participation or mainly lets existing holders reuse their capital.
