XRP is preparing to expand beyond its original network after Hex Trust announced plans to issue and manage wrapped XRP (wXRP), which represents XRP on a 1:1 basis and will be usable on various main blockchains, including Ethereum and Solana.
This initiative creates a new pathway for one of the top 5 digital assets by market capitalization to access cross-blockchain DeFi applications while expanding the benefits of XRP beyond the XRP Ledger into a wider array of on-chain financial activities.
XRP is set to launch on Solana, Ethereum, and several other networks.
According to a press release, each wXRP will be fully collateralized by original XRP held in a separate trust wallet of Hex Trust. The creation of new coins and redemptions will be available to authorized parties within a compliant environment.
wXRP will launch with a total locked value exceeding 100 million USD, which will provide immediate liquidity and support stable market activity from day one. This wrapped asset uses the Omnichain Fungible Token standard from LayerZero, which will enable multi-chain participation.
At wXRP, we are expanding XRP's liquidity in DeFi and cross-chain networks, as well as enhancing the mutual benefits between XRP and RLUSD. Users of wXRP and RLUSD will benefit from two types of assets built on a reliable and compliant infrastructure, which helps broaden the DeFi utility of XRP and RLUSD on supported blockchains. This was stated by Giorgia Pellizzari, CPO and Head of Custody at Hex Trust.
wXRP has expanded XRP's DeFi reach one step further, allowing this asset to be utilized on major blockchains starting with Solana, Optimism, Ethereum, and HyperEVM, with Hex Trust revealing that more networks will be supported in the future.
The aforementioned wrapped token will allow both users and institutions to participate in cross-chain activities, covering both swaps and liquidity provision under a regulated legal framework.
Since each wXRP is fully collateralized and can be redeemed for original XRP, it facilitates the movement of assets across blockchains without relying on unregulated third-party bridges, thereby also reducing counterparty risk.
Markus Infanger, SVP of RippleX, stated that there is currently a growing demand for XRP in the broader cryptocurrency ecosystem, including within the institutional sector, and Hex Trust is addressing this need. He also mentioned that
This also aligns with the work we are doing with RLUSD by providing regulated opportunities for people to access DeFi and manage their XRP positions across supported networks.
However, this announcement has had only a slight positive effect on XRP's price. Data from BeInCrypto Markets shows that the altcoin has risen by just over 1% in the past 24 hours, in line with the overall market recovery, and XRP is currently trading at USD 2.04.
Even the reaction to this lonely price isn't limited to this event; XRP has struggled to benefit from the success of spot exchange-traded funds (ETFs) or Ripple's broader business expansion efforts.
