New version of XRP debuts on Solana and Ethereum networks; understand

Source: PortaldoBitcoin Original Title: New XRP Version Debuts on Solana and Ethereum Networks; Understand Original Link: Cryptocurrency manager Hex Trust announced on Thursday the launch of a new version of XRP compatible with Ethereum and Solana networks: the wXRP, a wrapped “encapsulated” token paired 1:1 with Ripple’s native currency. With this new version, XRP can be traded on networks where the native asset is not compatible.

According to the company, the goal is to expand the use of XRP in decentralized applications and cross-chain operations.

The wXRP will be issued and maintained under segregated institutional custody, allowing authorized traders to issue and redeem the token in a fully regulated environment, said Hex Trust. The initiative aims to expand XRP’s utility beyond the XRP Ledger, opening doors for swaps, liquidity pools, and use as collateral in decentralized finance protocols (DeFi).

The wrapped token will be available on other compatible networks, such as Optimism and HyperEVM, and can be traded with Ripple’s stablecoin, RLUSD. The launch will feature over US$ 100 million in total value locked (TVL), providing immediate liquidity for the new asset.

Despite the technological advancement, the announcement did not generate an immediate impact on XRP’s price, which follows a broad decline in cryptocurrencies, falling 0.5% in the last 24 hours, to US$ 1.98.

XRP for DeFi

Wrapped XRP – or ‘Wrapped XRP’ in English – promises to be a strategic bridge to bring Ripple’s currency into the DeFi universe — a move awaited by developers and investors seeking greater interoperability between networks.

“With wXRP, we are expanding XRP’s liquidity in DeFi and cross-chain networks, including broader utility between XRP and RLUSD,” said Giorgia Pellizzari, CPO and Head of Custody at Hex Trust.

“Users of wXRP and RLUSD will benefit from two assets built on reliable and compliant infrastructure, enabling broader DeFi utility for XRP and RLUSD across all supported blockchains.”

What are wrapped tokens

Wrapped tokens — or encapsulated tokens — are assets that represent a cryptocurrency from one blockchain on another network, allowing its value to be transferred and used outside the original ecosystem. One of the most well-known is wrapped bitcoin (WBTC).

wBTC has parity with Bitcoin’s price, so 1 WBTC is always equal to 1 BTC. However, unlike Bitcoin, WBTC is available as ERC-20 or TRC-20 tokens, meaning it can be used and traded on Ethereum and Tron blockchains.

In a way, wrapped tokens are similar to stablecoins, such as USDT, which follow the US dollar price. Just as 1 WBTC is backed by the price of 1 BTC, 1 USDT is backed by the price of US$ 1.