Hex Trust Launches Wrapped XRP with $100 Million Liquidity Across Multiple Networks
- Hex Trust launched wrapped XRP (wXRP) on Dec. 12, available on Ethereum, Solana, Optimism, and HyperEVM.
- The launch features an initial liquidity of $100 million and positions wXRP as a trading pair for Ripple’s RLUSD stablecoin.
- RLUSD has surpassed $1 billion in circulation, primarily on Ethereum, enhancing XRP’s market reach beyond its native orderbooks.
- XRP will soon exist in at least four distinct wrapped formats across various networks, each with unique custody arrangements.
- The transition to wrapped tokens introduces new risks related to custodial trust and bridge infrastructure compared to native XRP’s trustless model.
The introduction of wXRP aims to tap into deeper liquidity pools and better trading execution across major platforms like Uniswap and Curve, contrasting the thinner liquidity of the native XRPL DEX.
As wXRP expands its presence in the DeFi landscape, it raises questions about whether the benefits outweigh the complexities introduced by custodians and bridges.(Source)
