Hex Trust, a manager specialized in digital assets, announced on Thursday (11) the launch of wXRP, a 'wrapped' version of the XRP token that becomes compatible with the Ethereum and Solana networks. This new format, pegged in a 1:1 ratio to Ripple's original XRP, allows the asset to be used in ecosystems where it was previously unsupported.
According to the company, the initiative aims to expand the reach of XRP in decentralized finance (DeFi) applications and in operations involving different blockchains.
The wXRP will be issued under separate institutional custody, ensuring that only authorized operators can create or redeem the token in a regulated environment. The proposal is to expand the use of XRP beyond its native ledger, enabling swaps, participation in liquidity pools, and use as collateral in DeFi protocols.
Furthermore, the wrapped token will be made available on other compatible networks, such as Optimism and HyperEVM, and can be traded alongside Ripple's stablecoin, RLUSD. The launch will have initial support of over US$ 100 million in total value locked (TVL), ensuring immediate liquidity for the new asset.
Impact on XRP price
Even with the announced technological advancement, the price of XRP did not show an immediate reaction. The cryptocurrency followed the overall market downtrend, recording a decline of 0.5% in the last 24 hours and being quoted at US$ 1.98.
XRP in the DeFi universe
The so-called Wrapped XRP (wXRP) emerges as a strategic solution to integrate Ripple's token into the DeFi ecosystem. This initiative, awaited by developers and investors, aims to expand interoperability between different networks.
According to Giorgia Pellizzari, CPO and Head of Custody at Hex Trust:
> "With wXRP, we are increasing XRP's liquidity in DeFi environments and cross-chain networks, enhancing its utility alongside RLUSD."
It adds that both wXRP and RLUSD were created on secure and regulated infrastructure, which opens up space for broader applications across various compatible blockchains.
What are wrapped tokens
Wrapped tokens function as representations of a crypto asset on another blockchain, allowing their value to be utilized outside the original system. A well-known example is Wrapped Bitcoin (WBTC).
WBTC maintains a direct equivalence with Bitcoin — 1 WBTC always corresponds to 1 BTC. The difference is that, unlike native Bitcoin, WBTC exists in ERC-20 or TRC-20 token format, allowing it to be traded on the Ethereum and Tron networks.
Similarly to stablecoins (like USDT, which tracks the value of the dollar), wrapped tokens mirror the price of the asset they represent. Thus, 1 WBTC reflects the value of 1 BTC, while 1 USDT is equivalent to US$ 1.
