With Hex Trust announcing plans for the issuance and custody of wrapped XRP (wXRP), XRP is set to expand beyond its own network. This 1:1 collateralized wrapped asset will operate on major blockchains such as Ethereum and Solana.
This plan paves the way for one of the top 5 digital assets by market capitalization to access cross-chain DeFi applications. The utility of XRP expands beyond XRP Ledger to various on-chain financial activities.
XRP, Solana, Ethereum, etc. listed
According to the press release, each wXRP is fully collateralized by original XRP held in a separate custody account within Hex Trust. The minting and redemption processes will be provided in a compliant environment for certified participants.
wXRP will be launched with a total deposit amount of over 100 million dollars. This allows for immediate liquidity and market stability from day one. This wrapped asset supports multi-chain participation by applying the Omnichain Fungible Token standard of LayerZero.
Through wXRP, the DeFi and cross-chain network liquidity of XRP is expanded. It also provides enhanced usability between XRP and RLUSD. Users of wXRP and RLUSD can enjoy broader DeFi usability benefits across supported blockchains through two assets based on trusted compliance infrastructure.” – Georgia Pellicciari, Hex Trust CPO and Head of Custody
wXRP expands the scope of XRP’s DeFi entry. This asset will be available on major blockchains such as Solana, Optimism, Ethereum, and HyperEVM. Hex Trust has announced that additional networks will soon be supported.
Through this wrapped token, both individual and institutional investors can participate in cross-chain activities. This includes exchanges and liquidity provision within a regulated framework.
Each wXRP is fully collateralized and can be exchanged for the original XRP, allowing users to move assets across chains without a regulated third-party bridge. This reduces counterparty risk exposure.
Marcus Infanger, Vice President of RippleX, stated that the demand for the use of XRP is growing within the broader cryptocurrency ecosystem and institutions, and that Hex Trust is responding to this demand. Additionally,
This connects naturally with the collaboration with RLUSD, providing a way for people to access DeFi in a regulated manner and manage XRP positions across supported chains.
However, this announcement had little positive impact on the price of XRP. According to BeInCrypto market data, this altcoin only rose slightly over 1% in the last 24 hours. This is similar to the overall market recovery. At the time of writing, XRP was trading at $2.04.
The sluggish price response is not limited to this issue alone. XRP has not fully benefited from the success related to spot ETFs and Ripple's extensive expansion efforts.
