Despite Ripple’s historic set off with the US securities watchdog SEC, the firm is continuing with its ambition for innovation.
As per the announcement the wrapped version of XRP, wXRP, is getting live on Ethereum blockchain by Dec 31st. A cross-chain wrapped assets provider wrapped.com is the company responsible for building wXRP. The token will be held in the custody provided by Hex Trust, Hong Kong-based licensed digital asset custodian.
Unlike the native XRP, the wXRP token will have DeFi capabilities. The users will be enabled to lend and borrow tokens, and swap it with other altcoins too. David Schwartz, CTO Ripple, added that the users will be able to use their holdings in their Ethereum walletsDeFi and smart contracts. wXRP is getting launched with the exchange rate of 1:1, which means that each wXRP token will have the backing of one native XRP. General Manager at Ripple’s innovation arm RippleX, Monica Long, stated
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. https://t.co/36shyqF0Nj
— 𝙳𝚊𝚟𝚒𝚍 𝚂𝚌𝚑𝚠𝚊𝚛𝚝𝚣 (@JoelKatz) November 1, 2021
“This is great not only for XRP utility and liquidity (more apps and use cases) but also for interchain operability.”
as she added that Ethereum and Bitcoin are already on XRPL via @gatehub, and they will see more tokens on XRPL in the future.
Hex Trust’s head of sales & business development, Calvin Shen, noted that their collaboration with wrapped.com will prove lucrative for the wider XRP ecosystem as the custody provider provides the adequate infrastructure to mobilize wXRP on the Ethereum blockchain.
It is to be noted here that Ripple has been under the hammer for almost an year now as they fight the SEC lawsuit in the court. The SEC had filed the lawsuit in Dec last year, alleging Ripple with its executives Chris Larsen and Brad Garlinghouse of selling $1.38 billion worth of XRPs as unregistered securities during 2010 to 2019.