Hex Trust Unleashes Wrapped XRP: Ripple’s Token Breaks into DeFi with Institutional Muscle

Institutional custody giant Hex Trust just threw XRP a lifeline to the booming DeFi world. Its new wrapped token bridges Ripple's ecosystem with Ethereum's sprawling network of decentralized applications—finally giving XRP holders a seat at the table.

The Wrapping Act: How It Works

Forget complex bridges. Hex Trust locks native XRP in its vaults and mints an equivalent ERC-20 token on Ethereum. This wrapped version acts as a perfect stand-in, letting XRP flow into lending protocols, decentralized exchanges, and yield farms it could never touch before. It's a simple custody play with massive implications.

Why This Move Cuts Deep

Ripple's token has long been sidelined in DeFi—a market dominated by Ethereum and its compatriots. This move isn't just about access; it's a strategic bypass. Hex Trust's institutional-grade custody attracts the big players—funds and corporates holding XRP who've watched DeFi from the sidelines, wary of technical risks and regulatory gray areas. Now they can dip a toe in with a trusted custodian holding the keys.

The Ripple Effect: Liquidity Unleashed

Billions in dormant XRP could soon flood into DeFi pools. That means fresh liquidity for protocols and new yield opportunities for holders—a potential win-win that strengthens both ecosystems. Some might call it a long-overdue catch-up play for a major asset trapped in its own lane.

A Cynical Take from Finance

Let's be real—the traditional finance crowd loves a good intermediary. They'd rather trust a licensed custodian to 'decentralize' their assets than actually touch a seed phrase. Hex Trust gets that, offering the illusion of DeFi participation with the comfort of a regulated middleman. It's decentralization, served with a side of paperwork.

This isn't just another token wrapper. It's a calculated power play that could reshape XRP's utility overnight—proving that sometimes, the fastest way forward is to wrap your legacy in something new.

Hex Trust said on Thursday it will begin issuing and custodying wrapped XRP, a token designed to let XRP MOVE across several blockchains while remaining backed 1:1 by the original asset.

The Hong Kong–based digital asset custodian said the new token, called wXRP, will allow XRP to be used in decentralised finance applications on chains such as Ethereum, Solana, Optimism and HyperEVM. The initiative is all set to make XRP more accessible outside its native ledger and give users a regulated way to move the asset across networks.

More XRP ecosystems is a good thing. Letting XRP operate in more environments builds utility, and the XRPL remains the anchor that makes it all work. https://t.co/szCfaj3KcL

Ripple’s chief technology officer, David Schwartz, welcomed the development, saying on social media that expanding XRP into more ecosystems “builds utility” while the XRP Ledger remains the “anchor” behind it.

Launch Backed by $100 Million in Locked Value

Hex Trust said wXRP will launch with more than $100 million in total value locked, providing liquidity from the first day of trading. The asset will be issued only when an equivalent amount of native XRP is deposited in custody and will be burned when redeemed, ensuring a 1:1 ratio.

The company said authorised merchants will be able to mint and redeem the token through an automated and compliant process. Users will also be able to access DeFi features when supported, such as liquidity pools and rewards.

Cross-Chain Trading With RLUSD

wXRP will also be tradeable with Ripple’s stablecoin RLUSD on ethereum and other networks where RLUSD operates. RippleX senior vice president Markus Infanger said demand has grown for ways to use XRP across multiple ecosystems, and the wrapped asset fits with the company’s efforts to expand regulated access to DeFi.

Custody and Compliance

Hex Trust said the underlying XRP will be held in regulated, segregated custody accounts that follow KYC and AML requirements. The wrapped token uses LayerZero’s OFT standard to allow transfers between chains.

The company said the design is aimed at institutions, DeFi projects and retail users who want to use XRP in cross-chain applications without relying on unregulated bridges, which have been frequent targets of hacks.