What happened in XRP lending and collateral during 2026?

The full answer

This is a dated list of XRP lending and collateral events in 2026 up to September 29, each tagged as a launch that went live, an announcement or a statement. Most dates and figures come from the companies involved, so the page is labelled Company-reported.

What happened, month by month?

January 29 (statement). Evernorth said it intends to use the planned XRP Lending Protocol “as a core pillar of our digital asset strategy.”[3]

February 3 (live). Flare announced Morpho lending on its network, through the Mystic interface. Users can “Deposit FXRP into curated, yield-bearing vaults” and “Use FXRP as collateral to borrow stablecoins or other assets.”[1]

February 5 (live). Flare said a Hex Trust integration, “now live for Hex Trust’s institutional clients, supports the minting and redeeming of FXRP and native FLR staking.”[2]

March 27 (statement). In remarks filed with the SEC, Evernorth said: “Institutional borrowers like market makers and collateral managers can draw from these vaults and that idle capital becomes productive capital.”[4]

May 10 to 11 (statement). Coverage of a podcast shared on May 10, recorded in fall 2025, quoted Ripple Prime CEO Mike Higgins listing collateral assets: “No, it’s Bitcoin, it’s Ethereum, it’s XRP, it’s stablecoins, it’s tokenized money market funds.”[5]

June 29 (announcement). Ripple described the XRPL Lending Protocol and said it “is subject to validator approval. Infrastructure providers and developers can begin integrating and testing on devnet today.”[6]

August 3 (announcement). Ripple announced investments in ZILO and Licuido, pointing to “collateral that sits idle instead of being put to work” and tokenized funds that “can be used as collateral from the point of issuance.” Ripple gave no amounts.[7]

August 4 (live). CoinDesk reported that “XRP holders can now use wrapped XRP (FXRP) as collateral to borrow Ripple’s RLUSD stablecoin on Ethereum via a new isolated market on Morpho Blue,” within “a $280 million lending pool of Ripple’s RLUSD stablecoin” managed by Sentora.[8] Flare later said the FXRP market “opened at a $4M cap.”[15]

August 13 (live). Decrypt reported that FXRP holders can “deposit the token into a Derive Portfolio Margin V2 account and trade derivatives from their own wallets.”[9]

August 18 (live, financing). Ripple announced “the successful closing of an upsized $275 million private placement of senior unsecured notes issued by Ripple Prime.” Proceeds are for “working capital and general corporate purposes within a regulated entity.”[10] The release does not tie the money to XRP. More on how Ripple Prime has been funded.

August 31 (reported September 9). A Schwab money market fund’s portfolio report listed XRP ETF shares among repo collateral from JPMorgan Securities and BofA Securities. Bitcoin.com News put the XRP ETF collateral at “$8.32 million in August,”[12] while crypto.news put it at “approximately $11.39 million.”[13] crypto.news added that the filing “does not establish that Schwab selected XRP ETFs for investment exposure.”[13]

September 2 (announcement). XRPL Commons described XLS-66 as “currently in voting.”[11]

September 16 (software release). xrpld 3.4.0 added LendingProtocolV1_1, which “Extends the LendingProtocol and SingleAssetVault amendments with a new closed-ended vault and cash-basis accounting.”[14]

September 24 (report). Flare reported “~ 145.2M FXRP minted with 130M FXRP in DeFi at work across ~7.8M transactions.” It said the Sentora market “stood at $7.85M with $7.9M RLUSD supplied against 10.6M FXRP collateral.”[15]

September 29 (status). LendingProtocol had 15 of 35 trusted-validator votes and SingleAssetVault 19 of 35, each needing 29; neither was enabled.[16] Morpho’s FXRP/RLUSD market page showed $7.19 million borrowed in a $7.9 million market.[17]

How FXRP use changed month by month is followed on what FXRP is.

Which timeline items were live launches and which were announcements or statements?

Live and in use: Morpho lending on Flare (February), Hex Trust’s FXRP minting (February), the FXRP/RLUSD market on Morpho on Ethereum (August), FXRP margin on Derive (August), and Ripple Prime’s closed notes (August).[1][2][8][9][10] The Schwab repo collateral is a reported holding at a date, not a product.[12][13]

Announcements and statements only: Evernorth’s plans for native lending (January and March), Ripple’s June description of the protocol, Ripple’s ZILO and Licuido investments, and the Higgins podcast remark.[3][4][5][6][7] The native Lending Protocol itself was not enabled at any point in the period covered: Ripple described it as subject to validator approval in June, and XRPL Commons as in voting in September.[6][11][16]

No verbatim June 2026 statement from Ripple Prime’s Mike Higgins that XRP is already used as collateral has been found. Bitget News (TimesTabloid) coverage of the June 25, 2026 Ripple webinar said only that “Higgins stated that Ripple Prime is integrating RLUSD as both a settlement layer and a collateral asset across trading venues.”[18] That names RLUSD, not XRP.

Were there setbacks in 2026, such as paused markets, reduced caps or exploits?

No paused market, cap cut or exploit involving XRP lending was found as of September 29, 2026 (news searched for FXRP exploits, pauses and cap reductions). Two weaker signals did show up.

First, FXRP use fell from its highs on Flare’s own figures. Flare reported “More than 155M minted by late April” and that “FXRP in DeFi grew from 82M to 144M between February and July,” then 145.2 million minted and 130 million in DeFi on September 24.[15] That is about 10 million fewer minted and 14 million fewer in DeFi (our calculation).

Second, the Morpho market page listed ten liquidations of one borrower’s FXRP position, on August 22, September 15 and September 23, 2026. Each seized between about 307 and 1,326 FXRP, and the page showed no realized bad debt.[17] It does not say why the liquidations happened. Liquidation is what a lending market is built to do when a loan becomes under-secured, so ten events on one wallet’s position show that a borrower against FXRP can lose collateral, not that the market failed.

What is expected next?

The validator vote on the lending amendments and any new FXRP credit markets are tracked on what to watch from XRP and Ripple next quarter. The case that this infrastructure is being built ahead of real demand is on is XRP infrastructure ahead of demand.