Hex Trust Launches Wrapped XRP on Solana With $100M Liquidity

wXRP Wrapped XRP on Solana Brings Regulated Liquidity to Solana DeFi

What will happen when a crypto asset that has long been trusted on moves into fast-paced DeFi

Hex Trust is finally live with the Wrapped XRP on Solana, making it a buzz within the crypto community. The introduced instrument, wXRP, brings more than $100 million worth of liquidity locked at the start. It shows that market experts have confidence in it.

This is significant as it empowers customers to employ liquidity based on XRP within Solana’s DeFi space without relying on centralized exchanges.

What Is Wrapped XRP on Solana?

Hex Trust’s wXRP is a digital asset designed for use within the framework of decentralized finance. 

• Its wXRP token represents a 1:1 ratio with its associated assets, which are stored with Hex Trust.

• In simpler terms, it means that at all times, there will be a redeemable option for the user regarding the actual asset. 

• It will be available with a balanced supply. 

Hex Trust employs LayerZero technology so as to enable a secure movement of the token from one blockchain.

Solana will be first blockchain supporting wXRP, with Ethereum, Optimism, and HyperEVM set to follow soon.

Why This Launch Is Important? 

Prior to this, there were very limited alternatives for XRP holders who wanted to participate in DeFi. That has all changed with Wrapped XRP on Solana

Users are now able to:

• Trade on Solana DeFi Platforms

• To be more specific with regard to liquidity

• Access Lending and Yield Platforms

• Use wXRP with $SOL or RLUSD

“The objective here is very simple,” says Hex Trust: “to increase liquidity and usage while ensuring that everything stays regulated and transparent.”

Source: X (formerly Twitter) 

A Strong Focus on Safety and Compliance

While there are several benefits associated, a major difference for Hex Trust’s wXRP is that it is regulated. Hex Trust is an institutional custodian that is licensed. This implies that all assets are stored carefully, audited and insured.

Tokens will be created based on deposits made and destroyed on redemptions. This will eliminate some risks associated with unregulated bridges.

The executives at Ripple appreciated the launch and commented that it added more functionality without undermining the original network. Also in other update, Ripple Payments sees first European bank adoption with AMINA Bank.

How the Market Reacted?

It had a significant impact on prices: 

• The XRP price increased by 0.84% within the 24-hour period and reached approximately $2.03 depicted stability. 

• XRP ETF inflows of 16.42 million dollars also added to short-term demand.

• Solana price rallied 5.27% within a single day, outperforming the market as traders welcomed new liquidity appearing on Solana DeFi.

According to analysts, it will be seen over time as volumes build on Solana-based exchanges.

The Bigger Picture

This launch is bridging the gap between trusted crypto liquidity and DeFi. The result is that institutions and individuals can make value transfers across chains and then apply that value.

As cross-chain finance evolves, it will be very significant for it to set an example on how established digital assets should enter DeFi. 

Disclaimer: This article contains information and should not be considered as investment advice. Investing in cryptocurrencies carries risk, and it is recommended to conduct your own research before any investment.