XRP is preparing to expand beyond its native network after Hex Trust announced plans to issue and hold wrapped XRP (wXRP). This is a fully backed, 1:1 representation of XRP that will work on multiple major blockchains such as Ethereum and Solana.
This move gives one of the five largest digital assets by market Capital the opportunity to access multi- chain DeFi applications. XRP will now have its utility extended beyond the XRP Ledger into broader blockchain-based financial activities.
XRP will soon be available on Solana, Ethereum, and many other platforms.
According to the press release, each wXRP will be fully backed by native XRP stored separately at Hex Trust. The issuance and exchange of wXRP is only available to licensed investors, ensuring compliance with regulations.
wXRP will launch with a total value locked exceeding $100 million. This provides immediate liquidation and supports market stability from day one. wXRP utilizes LayerZero's Omnichain Fungible Token standard, allowing participation across multiple chain .
“With wXRP, we are expanding XRP liquidation across DeFi and cross-chain networks, including enhancing utility connectivity between XRP and RLUSD. wXRP and RLUSD users will benefit from two assets operating on secure, regulated infrastructure, expanding the DeFi reach of XRP and RLUSD across supported blockchains,” Chia Giorgia Pellizzari, Head of Product and Custody at Hex Trust.
wXRP helps expand XRP 's reach in the DeFi sector. This asset can be used on major blockchains such as Solana, Optimism, Ethereum, and HyperEVM. Hex Trust says it expects to support more networks in the near future.
The use of wrapped Token allows both retail and institutional investors to participate in cross-chain activities such as swap transactions and provides liquidation within a secure regulatory framework.
Because each wXRP is fully backed and convertible into native XRP , users can move assets between blockchains without relying on unregulated intermediaries, thereby minimizing counterparty risk.
Markus Infanger, Senior Vice President of RippleX, stated that the demand for XRP across various crypto ecosystems and from institutions is growing, and Hex Trust is meeting this demand. He further emphasized that,
"This also aligns well with RLUSD's direction, offering people a legitimate approach to DeFi and managing their XRP assets across multiple chain ."
However, this announcement had little positive impact on the price of XRP. According to data from BeInCrypto Markets, the altcoin's price only increased slightly by just over 1% in the last 24 hours, mainly following the general market recovery. At the time of writing, XRP is trading at $2.04.
XRP price performance. Source: BeInCrypto MarketsThis isn't the first time XRP price has reacted weakly to new information. XRP has also struggled to capitalize on the success of spot ETFs or Ripple's scaling efforts.
