Digital asset platform and custody firm Hex Trust will be issuing a custody-wrapped version of the XRP token called w-XRP, as per an official announcement. The token will be a 1:1 version of the native XRP asset, except that it is wrapped.
Wrapped tokens are designed to allow cryptocurrencies to interact with other blockchains for better interoperability and functionality.
They can be used on blockchains such as Ethereum, BNB, Bitcoin, and others for easy swaps and trading. Bitcoin and Ethereum already have their own version of wrapped tokens called w-BTC and w-ETH, which are used in NFT trading and other transactions.
With the new issue, merchants who have authorization can use w-XRP can mint and redeem the token for easy trading across blockchains.
“With wXRP, we are expanding XRP liquidity in DeFi and cross-chain networks, including broader utility between XRP and RLUSD,” said Hex Trust’s Head of Custody, Giorgia Pellizzari.
“Users of wXRP and RLUSD will benefit from two assets that are built on trusted, compliant infrastructure, enabling broader DeFi utility for XRP and RLUSD across supported blockchains.” he also said.
The w-XRP token will be launched with a supply of $100 million in TVL (Total Value Locked), to help ensure it has sufficient liquidity.