XRP expands its operations beyond its own network, as Hex Trust announced plans to issue and custody wrapped XRP (wXRP). This 1:1 backed XRP representation works on major blockchains like Ethereum and Solana.
The initiative provides one of the largest digital assets with a pathway to cross-chain DeFi applications. This expands the utility of XRP beyond the XRP ledger into broader decentralized finance activities.
XRP arrives in Solana, Ethereum, and others
According to the press release, for every wXRP, native XRP is held in separate custody by Hex Trust. Selected, rule-compliant participants can participate in the issuance and redemption of tokens.
wXRP is launched with a Total Value Locked value of over 100 million dollars. This provides immediate liquidity and stabilizes market activity from the start. The wrapped asset utilizes the LayerZero Omnichain Fungible Token standard, enabling operation across multiple chains.
”With wXRP, we are expanding XRP's liquidity in DeFi and cross-chain networks, including broader benefits between XRP and RLUSD. wXRP and RLUSD users benefit from two assets that operate on a reliable, regulation-compliant infrastructure. This enables broader DeFi benefits for both XRP and RLUSD in supported blockchains,” Giorgia Pellizzari, CPO and Head of Custody at Hex Trust, said.
wXRP expands XRP's DeFi reach. This allows the asset to be used on major blockchains, starting with Solana, Optimism, Ethereum, and HyperEVM. Hex Trust stated that more networks will be added in the future.
Wrapped token enables users and institutions to participate in cross-chain activities. This includes swaps and providing liquidity through a regulated system.
As each wXRP is fully backed and redeemable against native XRP, users can transfer their assets between different blockchains without having to rely on unregulated third-party bridges. This reduces counterparty risk.
Markus Infanger, SVP of RippleX, noted that there is growing demand to use XRP in a broader cryptocurrency environment and institutions, and Hex Trust is responding to this need. He added that
“This fits naturally with the work we are doing with RLUSD, providing people with a regulated way to access DeFi services and manage their XRP positions in supported networks.”
However, the announcement had no significant positive impact on XRP's price. According to BeInCrypto Markets, the altcoin rose only just over a percent in the last 24 hours, which is in line with the broader market pullback. At the time of writing, XRP's price was $2.04.
The muted price reaction was not limited to this alone. XRP has also failed to benefit from the success of spot market ETFs (ETFs) or Ripple's expansion efforts.
