Hex Trust, LayerZero Launch Wrapped XRP on Solana

Hex Trust, LayerZero Launch Wrapped XRP on Solana

Key Takeaways:

  • wXRP aims to enhance XRP’s cross-chain utility.
  • Launch backed by institutional-grade custody.
  • First deployment initiated on Solana network.

In a significant move, Hex Trust and LayerZero have launched wrapped XRP (wXRP) on the Solana network, marking the token’s entry into multi-chain DeFi ecosystems.

The initiative represents a strategic effort to broaden XRP’s utility across multiple blockchains while maintaining secure custody. Solana’s integration facilitates cross-chain DeFi possibilities, enhancing transactional capabilities.

Hex Trust, a regulated custodian, has collaborated with LayerZero to introduce wXRP, backed 1:1 with XRP, to Solana. This initiative enables XRP’s integration into various DeFi platforms, expanding its use as collateral and liquidity.

The introduction of wXRP could significantly affect DeFi markets by enhancing liquidity options and expanding XRP’s application as a cross-chain asset. This launch sees the custodial-backed minting of wXRP, driven by institutional liquidity, capitalizing on Solana’s growing DeFi infrastructure.

Giorgia Pellizzari, CPO & Head of Custody, Hex Trust, “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.” source

By opening new yield strategies and cross-chain swaps, this development could herald increased DeFi adoption for XRP. The precise impact on Solana and DeFi protocols remains to be fully gauged, but initial liquidity sees $100M TVL.

Historical precedents, like Wrapped Bitcoin’s integration into DeFi, suggest similar positive liquidity transformations. Experts view the initiative as a catalyst for XRP’s further use, despite the absence of immediate regulatory statements. This launch positions XRP within a growing multi-chain DeFi landscape.

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