Hugo Philion, founder of the EVM-compatible layer-1 blockchain Flare (FLR), has proposed to the community a method to allow XRP-collateralized RLUSD loans on Ripple (XRP)'s layer-1 blockchain, XRPL, and to receive these loans directly back into an XRPL wallet. He explained, "By utilizing Flare's Smart Accounts, users can hold XRP on XRPL, convert it to FXRP, use it as collateral to borrow RLUSD, and then transfer it back to their XRPL wallet. However, for this structure to be actually implemented, Wormhole (W)'s RLUSD bridge must be operational, and approval from XRPL validators is required."
