Wrapped XRP (wXRP) will be supported on the Ethereum blockchain beginning in December, according to an announcement made on October 31 by Wrapped.com, a provider of cross-chain wrapped assets.
Wrapped XRP will be backed 1:1 with XRP — the native cryptocurrency of the XRP Ledger (XRPL) — and held in custody by Hex Trust, a Hong Kong-based licensed digital asset custodian. Users will be able to use wXRP in their Ethereum wallets, DeFi, and smart contracts, according to Ripple CTO David Schwartz in a Nov. 2 tweet. “It is, after all, a multichain [world].” Monica Long, Ripple’s general manager of RippleX, agreed, tweeting, “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 available on XRPL via @gatehub, and more tokens will be added in the future.”
The collaboration with Wrapped.com will benefit the broader XRP ecosystem because we will provide the infrastructure for Wrapped XRP to be mobilized on the Ethereum blockchain. Wrapped tokens “improve interoperability across DeFi protocols, connect otherwise isolated liquidity, and allow users to transact with a broader range of decentralized applications,” said Calvin Shen, Hex Trust’s head of sales and business development.
According to Ripple’s Q3 2021 XRP Markets Report, the company experienced “unprecedented” growth in its on-demand liquidity (ODL), which facilitates cross-border payments by acting as a bridge between two currencies. Ripple reported that ODL transactions increased by 130 percent quarter over quarter, and transaction volume on RippleNet has more than doubled since 2020. Ripple’s total XRP sales in Q3 2021, net of purchases, were US$491.74 million, up from US$157.92 million in Q2. According to Ripple, all XRP sales in Q3 were attributed to the growth and adoption of ODL.
While Ripple’s ODL business is expanding rapidly, the company is still embroiled in a lawsuit with the Securities and Exchange Commission (SEC) over an alleged unregistered securities offering of XRP worth more than US$1.38 billion. The fact discovery phase of the case has concluded (the process of exchanging information and taking testimony between parties), and the expert discovery phase is scheduled to conclude by mid-January 2022.