Hex Trust said on Thursday it will begin issuing and custodying wrapped XRP, a token designed to let XRP move across several blockchains while remaining backed 1:1 by the original asset.
The Hong Kong–based digital asset custodian said the new token, called wXRP, will allow XRP to be used in decentralised finance applications on chains such as Ethereum, Solana, Optimism and HyperEVM. The initiative is all set to make XRP more accessible outside its native ledger and give users a regulated way to move the asset across networks.
Ripple’s chief technology officer, David Schwartz, welcomed the development, saying on social media that expanding XRP into more ecosystems “builds utility” while the XRP Ledger remains the “anchor” behind it.
Launch Backed by $100 Million in Locked Value
Hex Trust said wXRP will launch with more than $100 million in total value locked, providing liquidity from the first day of trading. The asset will be issued only when an equivalent amount of native XRP is deposited in custody and will be burned when redeemed, ensuring a 1:1 ratio.
The company said authorised merchants will be able to mint and redeem the token through an automated and compliant process. Users will also be able to access DeFi features when supported, such as liquidity pools and rewards.
- Also Read :
- New XRP ETF Goes Live Soon: Can XRP Price Outrun Bitcoin by 600%?
- ,
Cross-Chain Trading With RLUSD
wXRP will also be tradeable with Ripple’s stablecoin RLUSD on Ethereum and other networks where RLUSD operates. RippleX senior vice president Markus Infanger said demand has grown for ways to use XRP across multiple ecosystems, and the wrapped asset fits with the company’s efforts to expand regulated access to DeFi.
Custody and Compliance
Hex Trust said the underlying XRP will be held in regulated, segregated custody accounts that follow KYC and AML requirements. The wrapped token uses LayerZero’s OFT standard to allow transfers between chains.
The company said the design is aimed at institutions, DeFi projects and retail users who want to use XRP in cross-chain applications without relying on unregulated bridges, which have been frequent targets of hacks.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Wrapped XRP (wXRP) is a token that represents XRP on other blockchains like Ethereum or Solana, allowing it to be used in DeFi applications while being securely backed 1:1 by the original XRP.
wXRP works on multiple blockchains (e.g., Ethereum, Solana) for DeFi use, while regular XRP operates primarily on its own native XRP Ledger. Each wXRP is fully backed by real XRP in regulated custody.
Yes, wXRP is issued by a regulated custodian with secure, segregated holdings. It uses a compliant 1:1 backing model, reducing risks common with unregulated cross-chain bridges.
You can use wXRP in decentralized finance (DeFi) across chains for trading, liquidity pools, and earning rewards, including trading against Ripple’s RLUSD stablecoin on supported networks.
Authorized merchants can mint wXRP by depositing an equivalent amount of XRP into regulated custody; the process is automated and ensures a secure 1:1 conversion for users.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Credit: Source link