Hex Trust, a regulated institutional asset custodian, announced on December 12 that it would issue wrapped XRP (wXRP) on Solana (SOL), among other networks, including Ethereum (ETH).
A fully collateralized version of the native token built for use beyond the XRP Ledger (XRPL), wrapped XRP can be redeemed 1:1 for XRP at any time. The rollout is set to begin with more than $100 million in value locked, giving traders and institutions immediate liquidity from day one.
XRP price analysis
Despite the bullish implications of the launch, however, XRP price is yet to show any noticeable reaction, up only 0.84% on the daily chart at the time of writing after a relatively disappointing past week that led to a 1.26% price drop. Still, the cryptocurrency is again trading at $2.03, above the psychological $2 level which it fell below yesterday.
Daily XRP price. Source: FinboldThe reason for the cautious optimism is hard to pinpoint. However, it is possible that while cross-chain expansion could help boost demand by introducing XRP to a growing decentralized finance (DeFi) network, the current dominance of Ripple’s RLUSD stablecoin on Ethereum raises the risk that XRP’s native utility could become overshadowed within its own ecosystem.
Given that the initiative reflects rising institutional appetite to deploy both XRP and RLUSD across a broader range of crypto platforms, any long-term impact may hinge on whether meaningful liquidity actually migrates back to the XRP Ledger.
Indeed, while XRP was one of crypto’s earliest attempts at building a universal settlement layer, the asset has largely remained confined to the XRP Ledger. The situation is now changing, but judging by the muted price action, wXRP’s debut on new chains could be an important strategic step toward greater utility rather than an immediate price catalyst.
Featured image via Shutterstock
Source: https://finbold.com/wrapped-xrp-to-debut-on-solana-heres-how-xrp-price-reacted/
