Wrapped XRP (wXRP) enables the Ripple-linked XRP token to integrate with DeFi on major layer-1 networks like Ethereum and Solana through a 1:1 backed wrapper from Hex Trust. This expands liquidity and utility beyond the XRP Ledger, starting with $100 million in TVL and compliant custody.
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Hex Trust launches wXRP on Ethereum, Solana, Optimism, and HyperEVM for cross-chain DeFi access.
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wXRP is backed 1:1 by native XRP, held in institutional-grade custody with KYC/AML compliance.
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Initial $100 million TVL supports liquidity; over 50 million XRP in reserves, with expansions planned for more blockchains.
Discover how wrapped XRP unlocks DeFi opportunities on Ethereum and Solana. Learn about Hex Trust’s wXRP launch, its benefits for XRP liquidity, and future integrations in this comprehensive guide.
What Is Wrapped XRP and How Does It Enable DeFi on Ethereum and Solana?
Wrapped XRP is a 1:1 representation of the native XRP token, designed to bring its utility to other blockchains like Ethereum and Solana. Issued by digital asset firm Hex Trust, wXRP allows users to participate in DeFi protocols, market-making, and cross-chain applications outside the XRP Ledger. This integration enhances XRP’s liquidity and accessibility, starting with launches on Ethereum, Solana, Optimism, and HyperEVM, with more networks planned.
How Does Hex Trust’s wXRP Wrapper Work Across Blockchains?
Hex Trust’s wXRP uses the LayerZero OFT Standard to ensure seamless, secure bridging between chains. The wrapper maintains full backing by native XRP tokens, custodied in a compliant, institutional-grade environment that adheres to KYC and AML standards. This setup provides transparency and security, with a dashboard tracking reserves—currently over 50 million XRP held, supporting 50 million wXRP in circulation on Ethereum alone.
Giorgia Pellizzari, Hex Trust’s Chief Product Officer and Head of Custody, stated, “With wXRP, we are expanding XRP liquidity in DeFi and cross-chain networks, including broader utility between XRP and RLUSD.” This initiative launches with $100 million in total value locked (TVL) to bootstrap liquidity pools across supported chains. Transactions on Optimism and HyperEVM already show active contracts, though circulation is ramping up gradually—only one wXRP on Optimism and none yet on HyperEVM. Solana integration is imminent, promising faster, lower-cost DeFi interactions for XRP holders.
The benefits extend to Ripple’s stablecoin, RLUSD, which launched in December 2024 and is gaining traction through partnerships like those with Mastercard and Gemini for credit card settlements. Markus Infanger, Senior Vice President of Ripple X, commented, “There’s growing demand to use XRP across the wider crypto ecosystem and institutions, and we are excited to see Hex Trust address this demand. It also fits naturally with the work we’re doing with RLUSD, giving people a regulated way to access DeFi and manage their XRP positions across supported chains.”
Pellizzari added, “Users of wXRP and RLUSD will benefit from two assets that are built on trusted, compliant infrastructure, enabling broader DeFi utility for XRP and RLUSD across supported blockchains.” This development positions XRP as a more versatile asset in the evolving DeFi landscape, where interoperability is key to adoption.
Frequently Asked Questions
What Is the Launch Timeline for wXRP on Solana?
wXRP on Solana is set to launch soon, following its initial rollout on Ethereum. Hex Trust has prepared the infrastructure using the LayerZero standard, aiming to provide immediate DeFi access with the full $100 million TVL backing liquidity from day one.
How Can Institutions Use Wrapped XRP for DeFi?
Institutions can leverage wXRP through Hex Trust’s compliant custody solutions, ensuring KYC/AML adherence while accessing DeFi yields, lending, and trading on Ethereum and Solana. This regulated approach bridges traditional finance with blockchain, as highlighted by Ripple’s integrations with RLUSD for seamless settlements.
Key Takeaways
- XRP DeFi Expansion: wXRP brings XRP to Ethereum, Solana, and beyond, unlocking new liquidity pools and cross-chain opportunities.
- Security and Compliance: Backed 1:1 with over 50 million XRP in reserves, wXRP uses institutional custody for trusted DeFi participation.
- Future Integrations: Starting with $100 million TVL, the wrapper will add more blockchains, enhancing RLUSD synergy and institutional adoption.
Conclusion
The introduction of wrapped XRP by Hex Trust marks a significant step for XRP DeFi integration on Ethereum and Solana, broadening its role in cross-chain ecosystems while maintaining regulatory compliance. As liquidity grows and more networks join, XRP holders can expect enhanced utility and innovation. Stay informed on these developments to capitalize on the expanding opportunities in decentralized finance.
Source: https://en.coinotag.com/xrp-set-to-boost-defi-utility-on-ethereum-and-solana-with-new-wxrp-wrapper
