Ripple’s native cryptocurrency XRP is coming to Solana, Ethereum, and other networks. This is in wrapped token format (wrapped tokenin English), is called wXRP and is published by Hex Trust through a protocol created by LayerZero.
assets wXRP is a 1:1 representation of native XRP. This means that each unit of wXRP issued is equally backed by real XRP.
XRP coins are locked, but usable equivalent coins are created on a separate wXRP chain. This adds liquidity and expands the range of the token. without changing the overall offer.
This initiative is part of Hex Trust, which provides financial and custodial services to financial institutions. This company will take care of it wXRP issuance and XRP backing.
Meanwhile, Hex Trust said in a statement on December 12th: wXRP will be available on multiple chainsHowever, it does not specify a date or whether one network will receive that token before the other.
wXRP expands the utility of XRP in decentralized finance (DeFi) by making it available for use on supported blockchains, including Solana, Optimism, Ethereum, HyperEVM, and other chains that will be integrated in the future.
Hex Trust Statement.
The wrapped version moves XRP’s price representation away from the native network and makes it available to applications running on other ecosystems, such as Solana and Ethereum.
This will create wXRP Assets that can be used in multiple chainsexpanding its use cases and access to markets, liquidity, and DeFi tools not currently available on the native XRP network, the XRP Ledger.
However, wrapped tokens like wXRP introduce dependencies that the native version does not have. Must trust administrator to maintain 1:1 backups The light emitting and writing process is executed reliably.
Additionally, using wXRP relies on LayerZero infrastructure. This may add yet another point of failurewhich does not happen when trading XRP directly on the original network.
How is LayerZero involved in issuing a wrapped version of XRP?
The LayerZero team reports that wXRP and Solana integration will be available “soon”, indicating that this will be the first network to accept it.
They also explained that the expansion of wXRP will be supported by the Omnichain Fungible Token (OFT) standard, a set of smart contracts that allow for the same assets. Works on different networks without relying on external bridges.
This scheme avoids reliance on unregulated bridges and reduces the risks associated with these tools, which tend to have a high concentration of security vulnerabilities. The latter does not negate the fact that failures can also occur in OFT.
OFT system Maintain one-to-one parity of assets. At the same time, it enables cross-chain operations such as exchanges, liquidity provision, and access to financial applications.
For issuance, Hex Trust receives native XRP and stores it in a segregated account. User funds remain separate from custody assets.
Once that deposit is confirmed, Hex authorizes OFT contracts deployed on each network (such as Solana, Ethereum, or Optimism) to create an equivalent amount of wXRP.
This maintains a 1-to-1 backup and ensures that there are only wXRPs issued strictly for the XRPs being held.
In practice, this process is achieved through the interface of relevant DeFi applications, such as Solana and Ethereum decentralized exchanges.
Users must connect to their wallet, specify the number of wXRP to transfer, select the destination network and confirm the transaction.
OFT standard the rest will be done automatically– Write a token on the source network, send a message cross-chain, and mint the corresponding amount on the destination network. No additional steps are required.
Other features of wXRP cryptocurrency launch
Hex Trust announced that wXRP will debut with a locked value of over USD 100 million. This initial capital provides liquidity from day one and reduces the possibility of sudden fluctuations in the price of the associated token.
It was also noted that authorized traders can mint and redeem wXRP in an automated manner. To mint tokens, you need to store XRP. To redeem it, write wXRP and receive native XRP.
This process aims to ensure the total amount of wXRP in circulation. Accurately reflects deposited support.
Finally a stablecoin RLUSD The one created by Ripple will be the main liquidity pair For wXRP on supported chains.
This combination enables direct trading pairs and strategies for users who want to manage their XRP positions across different ecosystems.
