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New Wrapped Asset: Hex Trust, a regulated institutional custodian, plans to issue and custody Wrapped XRP (wXRP).
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DeFi Expansion: wXRP is designed to expand XRP’s utility in Decentralized Finance (DeFi) and cross-chain applications beyond the native XRP Ledger.
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Initial Liquidity: The wrapped asset is set to launch with over $100 million in total value locked (TVL) to ensure strong liquidity.
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Interoperability: wXRP will boost utility by pairing with Ripple’s RLUSD stablecoin on chains like Ethereum, and will be available on Solana, Optimism, and HyperEVM.
Hex Trust Launches Regulated wXRP
Hex Trust, a regulated institutional custodian, is set to launch and custody Wrapped XRP (wXRP), a 1:1-backed representation of XRP. The goal is to significantly expand the asset's use cases in Decentralized Finance (DeFi) and improve cross-chain interoperability. The firm announced that authorized merchants will be able to mint and redeem wXRP in a "secure, automated, and fully compliant environment," with the underlying native XRP held in segregated, regulated custody accounts.
Boosting Liquidity and Cross-Chain Utility
The new wXRP is slated to launch with a significant initial liquidity base, starting with over $100 million in Total Value Locked (TVL). This substantial liquidity aims to support smoother trading and reliable pricing across supported chains. The wrapped asset will initially be available on blockchains including Solana, Optimism, Ethereum, and HyperEVM. Hex Trust highlighted that this regulated path for cross-chain activity allows institutions and users to engage in swaps and yield opportunities without relying on unregulated third-party bridges, thereby reducing counterparty risk.
Alignment with Ripple’s RLUSD Stablecoin
A key feature of the launch is the interoperability with Ripple's RLUSD stablecoin. The creation of wXRP will allow the asset to be traded as a liquidity pair alongside RLUSD on chains where the stablecoin is available, further expanding utility and access to DeFi. This move by Hex Trust comes amidst growing interest in XRP, highlighted by recent launches of spot XRP exchange-traded funds (ETFs) in the U.S., which have collectively amassed close to $1 billion in net inflows.
