XRP is expanding beyond its own network now that Hex Trust has announced plans to issue and manage wrapped XRP (wXRP). This 1:1 backed version of XRP will operate on major blockchains, such as Ethereum and Solana.
With this initiative, one of the five largest digital assets is given an opportunity to utilize cross-chain DeFi applications. It enhances the utility of XRP beyond the XRP Ledger to broader on-chain financial activities.
XRP is coming to Solana, Ethereum, and more.
According to the press release, each wXRP is fully backed by native XRP held in segregated custody at Hex Trust. Minting and redeeming wXRP is only available to authorized participants within a regulated environment.
wXRP will start with more than $100 million in Total Value Locked. This ensures immediate liquidity and stable market activity from day one. The wrapped asset uses LayerZero's Omnichain Fungible Token standard, allowing participation across multiple blockchains.
“With wXRP, we are expanding XRP liquidity in DeFi and cross-chain networks, including broader utility between XRP and RLUSD. Users of wXRP and RLUSD benefit from two assets built on trusted and regulated infrastructure, resulting in broader DeFi utility for XRP and RLUSD on supported blockchains,” said Giorgia Pellizzari, CPO and Head of Custody at Hex Trust.
wXRP enhances the DeFi capabilities of XRP. It enables the asset to be used on major blockchains, starting with Solana, Optimism, Ethereum, and HyperEVM. Hex Trust has indicated that more networks will be added.
Thanks to the wrapped token, users and institutions can participate in cross-chain activities, such as swaps and liquidity provision, all within a regulated framework.
Because each wXRP is fully backed and can be redeemed for native XRP, users can move between blockchains without relying on unregulated third-party bridges. This reduces counterparty risks.
Markus Infanger, SVP of RippleX, stated that there is increasing demand for XRP to be used in the broader cryptocurrency ecosystem and among institutions, and that Hex Trust is responding to this demand. He added that,
“This also aligns well with the work we are doing with RLUSD, allowing people to access DeFi in a regulated manner and manage their XRP positions across different chains.”
Still, the news had little positive effect on the XRP price. Data from BeInCrypto Markets shows that the altcoin has increased by just over 1% in the past 24 hours, largely in line with the broader market recovery. At the time of writing, XRP was trading at $2.04.
The lukewarm price reaction was not limited to this development. XRP also struggles to benefit from the success of spot exchange-traded funds (ETFs) or Ripple's broader expansion efforts.
