Flare founder proposes XRP-backed RLUSD lending on XRPL

Hugo Philion, founder of EVM-compatible layer-one blockchain Flare (FLR), has proposed allowing RLUSD loans backed by XRP collateral on Ripple’s layer-one blockchain XRPL, with proceeds sent directly to XRPL wallets. Philion explained that by using Flare’s "Smart Accounts," users could keep XRP on XRPL, convert it into FXRP, borrow RLUSD against that collateral, and then send the funds back to an XRPL wallet. He added that the structure would require Wormhole’s (W) RLUSD bridge to be operational and approval from XRPL validators.