David Schwartz pointed to: Wrapped XRP is coming to Ethereum. Great news for those that want to access XRP within Ethereum wallets, DeFi, and smart contracts. It’s a multichain after all.
Wrapped.com expressed: Today we’re announcing that we’ll be officially supporting Wrapped XRP (wXRP) on the Ethereum blockchain starting in December. XRP is the native asset of the XRP Ledger – XRPLF.
Asia’s leading digital asset custodian, users will soon be able to use Wrapped XRP (wXRP), a digital asset backed 1:1 by XRP, throughout Ethereum’s vast and well-developed DeFi ecosystem.
Wrapped XRP will be backed 1:1 with XRP, securely placed into custody with Hex Trust, the leading fully-licensed and insured provider of bank-grade custody for digital assets in Asia.
Led by veteran banking technologists and award-winning financial services experts, Hex Trust has built Hex Safe™, a proprietary bank-grade platform that delivers custody and other value-add services to financial institutions, digital asset service providers, and private clients.
Stay tuned over the next month for more updates on how to interact with wXRP on Ethereum, including where you can see it first.
Monica Long expressed: “Huge news for the Defi community! This is great not only for XRP utility and liquidity (more apps and use cases) but also for interchain operability. ETH and BTC are already on XRPL via gatehub, and we’ll see more tokens on XRPL. This is just the beginning.”
Community Response: What is the difference between normal XRP and this Wrapped Version?
You’ll be able to use XRP on the Ethereum’s platform, particularly, it’s DeFi’s. You cannot do that with the native XRP token itself. It’s just like you cannot use Bitcoin in smart contracts on Ethereum. Wrapping is required. Hence, Wrapped BTC and Wrapped XRP.
I don’t know how market participants plan to allocate their capital. This wrapped XRP does add more utility for XRP as it ties XRP into the current largest network, ETH.
If they have the ability to cheaply convert ERC tokens and ETH to wXRP, then move that from the ETH network to the XRPL network, we could see a lot of value move that direction as people take advantage of the lower fees on XRPL.
Not that excited to be honest. This product carries counterparty risk by the issuer. I’m more excited to see non-custodial assets on an EVM compatible L1 for decentralized finance applications. I suppose it’s a supply segregation on active Ethereum network so there’s that.
Things get even more complicated for Gary Gensler…You’re going to drive the guy crazy in the end.
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