XRP is poised to broaden its horizons beyond its native blockchain with the recent announcement from Hex Trust. The firm plans to issue and manage wrapped XRP (wXRP), a 1:1-backed version of XRP that will function across prominent blockchain networks such as Ethereum and Solana. This strategic initiative aims to unlock access to cross-chain decentralized finance (DeFi) applications for one of the leading digital assets by market capitalization.
According to the official press release, each wXRP token will be completely backed by native XRP that is securely held in segregated custody at Hex Trust. Minting and redemption of these tokens will be conducted in a compliant setting available only to authorized participants. The launch of wXRP is expected to kick off with over $100 million in Total Value Locked (TVL), ensuring immediate liquidity and stable market activity right from the start.
The wrapped asset utilizes LayerZero”s Omnichain Fungible Token standard, which facilitates multi-chain participation. “With wXRP, we are expanding XRP liquidity in DeFi and cross-chain networks including broader utility between XRP and RLUSD,” stated Giorgia Pellizzari, Chief Product Officer and Head of Custody at Hex Trust. This development will enable users to engage with both wXRP and RLUSD on a compliant infrastructure, thus enhancing the utility of both assets across supported blockchains.
The introduction of wXRP significantly extends the DeFi capabilities of XRP, making it usable on major networks including Solana, Optimism, and HyperEVM, with more networks anticipated to follow. This wrapped token empowers both individual users and institutions to engage in cross-chain activities, such as swaps and liquidity provision, all within a regulated framework. Moreover, as each wXRP is fully backed and redeemable for native XRP, it allows users to transition seamlessly between blockchains without relying on unregulated third-party bridges, thereby minimizing counterparty risk.
Markus Infanger, Senior Vice President of RippleX, remarked on the increasing demand for leveraging XRP within the broader cryptocurrency ecosystem, especially among institutional players, indicating that Hex Trust”s initiative is a direct response to this demand. However, despite the announcement, the immediate impact on the price of XRP has been modest, with data from BeInCrypto Markets showing an increase of just over 1% in the past 24 hours, aligning with a general recovery trend in the broader market. At the time of writing, XRP was trading at $2.04. This muted price reaction is not an isolated occurrence, as XRP has struggled to capitalize on the recent success of spot exchange-traded funds (ETFs) or Ripple”s expansive growth initiatives.
