Hex Trust Launches Wrapped XRP to Boost DeFi Utility. Will XRP pump to $2.5 before 2026?

Wrapped XRP (wXRP) is a new initiative by Hex Trust that has officially been announced, making it one of the key drivers of XRP utility within DeFi and cross-chain markets. The regulated custodian will create and safeguard the 1:1-backed asset, making all wXRP fully redeemable for native XRP. This is a strategic move to take XRP beyond the XRP Ledger into ecosystems like Ethereum, where it can be paired with Ripple’s RLUSD stablecoin.

Regulated Minting and Custody to Support Growing Cross-Chain Demand

According to Hex Trust, authorized merchants will also be able to mint and redeem wXRP within a secure, automated, and fully compliant framework. The company highlighted that the regulated custody would comprise segregated accounts, KYC/AML, insurance, and full auditability, which help minimize counterparty risk that can be often seen in unregulated cross-chain bridges.

Giorgia Pellizzari, the CPO and Head of Custody at Hex Trust, states that the program enhances the liquidity of XRP in DeFi and cross-chain applications, as well as its approach to RLUSD. The company also approved that users will get access to yield opportunities on chosen DeFi platforms that support the wrapped asset.

wXRP Launches With More Than $100M TVL for Deep Liquidity

Wrapped XRP will be launched with more than $100 million worth of total value locked (TVL) by Hex Trust, providing a large liquidity foundation from day one. The company expects that this will ease trading, reduce spreads, and make prices more predictable since the asset will become accessible on popular blockchains. RippleX SVP Markus Infanger also stated that “With wXRP, we are expanding XRP liquidity in DeFi and cross-chain networks, including broader utility between XRP and RLUSD”.

Multi-Chain Availability Across Major Blockchains

Initial launch will be on Solana, Optimism, Ethereum, and HyperEVM, with additional networks to come. Such a multi-chain presence allows swaps, liquidity provisioning, and yield farming across different ecosystems, all without using unregulated third-party bridges. 

In this regard, RippleX SVP Markus Infanger stated “There’s growing demand to use XRP across the wider crypto ecosystem and institutions, and so we are excited to see Hex Trust address this demand,” he added “It also fits naturally with the work we’re doing with RLUSD, giving people a regulated way to access DeFi and manage their XRP positions across supported chains.”

Hex Trust has highlighted that every unit of wXRP is pegged to one XRP in segregated custody accounts and will be issued or burned when native XRP is deposited or redeemed. The company also elaborated that its institutional-grade custody has KYC/AML compliance, insurance coverage, and full auditability.

XRP Utility Expansion Continues Across the Industry

The wrapped XRP project is coming at a larger wave of XRP-focused development. Earlier this year, Coinbase launched cbXRP on Base, which has approximately 39 million in supply,  with Universal Wrapped XRP also serving the market. Firelight Finance recently introduced an XRP staking protocol on the Flare network with a liquid staking token called stXRP.

In the meantime, Canary Capital, Bitwise, Grayscale, and Franklin Templeton U.S. spot XRP ETFs have all gained over $1 billion in net inflows since debuting on Nov. 13, which is another indicator of institutional momentum.

Wrapped XRP Strengthens XRP’s DeFi and Cross-Chain Future

As Hex Trust launches regulated wrapped XRP, the XRP ecosystem gains an impressive tool to increase liquidity, drive the adoption of DeFi, and improve cross-chain interoperability. With the integration of wXRP, institutional-quality custody, and ubiquitous multi-chain support, Hex Trust transforms wrapped XRP into a foundation of the next stage of XRP’s utility growth.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.