Wrapped XRP coming to Ethereum in December

Michelle Lim

3 years ago

Wrapped XRP (wXRP) will be supported on the Ethereum blockchain from December, according to an Oct. 31 announcement by Wrapped.com, a cross-chain wrapped assets provider.

Fast facts

Wrapped XRP will be backed 1:1 with XRP — the native cryptocurrency of the XRP Ledger (XRPL) — and held in custody with Hong Kong-based licensed digital asset custodian Hex Trust. Users will be able to use wXRP in their Ethereum wallets, DeFi and smart contracts, said David Schwartz, Ripple CTO, in a Nov. 2 tweet. “It’s a multichain [world] after all.” This was echoed by Monica Long, general manager of RippleX at Ripple, who tweeted: “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.”

“The collaboration with Wrapped.com will benefit the wider XRP ecosystem as we provide the infrastructure to mobilize Wrapped XRP on the Ethereum blockchain. Wrapped tokens improve interoperability across DeFi protocols, create connections between otherwise isolated liquidity, and enable users to transact with a broader range of decentralized applications,” said Calvin Shen, head of sales & business development at Hex Trust.

According to Ripple’s Q3 2021 XRP Markets Report, Ripple saw “unprecedented” growth of its on-demand liquidity (ODL), which facilitates cross-border payments by using XRP as a bridge between two currencies. ODL transactions increased 130% quarter over quarter and transaction volume on RippleNet more than doubled since 2020, Ripple reported. Total XRP sales by Ripple in Q3 2021, net of purchases, were US$491.74 million, compared to US$157.92 million in Q2. All XRP sales in Q3 were attributed to the growth and adoption of ODL, Ripple said.

While Ripple sees strong growth in its ODL business, it remains deeply embroiled in a lawsuit with the U.S. Securities and Exchange Commission (SEC) over its alleged unregistered securities offering of XRP worth over US$1.38 billion. The case has concluded its fact discovery phase — the process of exchanging information and taking testimony between parties — and the expert discovery phase is scheduled to be concluded by mid-January 2022.