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wXRP on public blockchains: Hex Trust opens the door to XRP liquidity in the DeFi ecosystem
According to Jinse Finance, Hex Trust is preparing to introduce a wrapped version of XRP, known as wXRP, which fully mirrors the value of the native XRP on a 1:1 basis. This move is fundamentally important for expanding XRP beyond the XRP Ledger, enabling its active use in decentralized finance applications (DeFi) and cross-chain transactions.
Breaking Barriers: XRP Goes Beyond the XRP Ledger
Previous uses of XRP were limited to internal trading within the XRP Ledger. Hex Trust, operating as a regulated institutional custodian, sees potential in transferring this asset to main blockchains, particularly Ethereum. In this ecosystem, wXRP will be able to create trading pairs with Ripple’s RLUSD stablecoin, thereby generating significantly deeper market liquidity.
Issuance Mechanics and Security
Authorized dealers will have access to a fully automated and regulation-compliant process for minting and redeeming wXRP. A key guarantee is the full backing of each issued token by the native XRP managed by Hex Trust in accordance with legal requirements. This architecture allows users to fully redeem their tokens and also opens up opportunities to generate income through integrations with DeFi platforms.
Scaling Liquidity and Market Stability
At the launch of the wXRP protocol, the total value locked will exceed $100 million. This initial capitalization will create a solid liquidity base, ensuring efficient transaction execution and maintaining token price stability on public markets.
Hex Trust’s initiative signals the growing importance of wrapped tokens (wrapped tokens) in building bridges between previously isolated blockchain ecosystems, and wXRP is a concrete example of how traditional blockchain assets can find new applications in the rapidly evolving DeFi world.