XRP lands on Solana! $100 million total locked value kicks off a new era of DeFi cross-chain

Hex Trust leverages LayerZero to issue and custody Wrapped XRP (wXRP), bringing XRP into blockchain ecosystems such as Solana. wXRP is supported 1:1 by native XRP and will have a total locked value (TVL) of over $100 million upon launch, providing initial liquidity for the asset. wXRP will first be launched on Solana and then expanded to Ethereum and other blockchains.

XRP Cross-Chain Pain Point: Liquidity Islands Need to Break Through

(Source: HexTrust)

Although XRP is among the top five cryptocurrencies by market cap, its application within the DeFi ecosystem has been limited. The main reason is that XRP operates on its own XRP Ledger (XRPL), which is a blockchain with a completely different technical architecture from mainstream smart contract platforms like Ethereum and Solana. While XRPL performs excellently in payments and cross-border remittances, it is far less mature in smart contract capabilities and DeFi ecosystem development compared to Ethereum and Solana.

This technological isolation has resulted in XRP becoming a “liquidity island.” DeFi protocols on Ethereum cannot directly use XRP as collateral or trading pairs, and decentralized exchanges on Solana cannot natively support XRP. Investors wishing to use XRP in DeFi must first convert it to USDC or other assets before engaging in liquidity mining, lending, or derivatives trading. This additional conversion step adds costs and friction, limiting XRP’s practical utility.

The launch of wXRP aims to solve this pain point. By “wrapping” XRP into tokens compatible with other blockchain standards, wXRP can circulate freely within ecosystems like Ethereum and Solana. This is similar to how WBTC (Wrapped Bitcoin) releases Bitcoin liquidity on Ethereum. After WBTC was introduced, Bitcoin holders could participate in Ethereum DeFi without selling BTC, greatly improving Bitcoin’s capital efficiency.

wXRP expands XRP’s application across different DeFi platforms and multiple blockchains, supporting trading and liquidity swaps with RLUSD on Ethereum and other supported networks. It enables authorized merchants to mint and exchange wXRP in a secure and fully compliant environment. Users can also earn DeFi rewards through supported platforms. The wrapped token can still be redeemed 1:1 for native XRP held in Hex Trust’s regulated custody.

Solana Launch Strategy: Speed and Cost Advantages

wXRP will first be launched on Solana, a strategically significant choice. Solana is currently one of the most high-performance smart contract platforms, capable of processing over 65,000 transactions per second theoretically, with transaction fees usually below $0.001. This high performance makes Solana the preferred platform for high-frequency trading and large-scale applications, especially suited for payments and DeFi scenarios.

Compared to Ethereum’s often tens-of-dollars gas fees and slower transaction speeds, Solana provides a more developer-friendly environment for wXRP. XRP itself is known for fast and low-cost transfers, with transactions on XRPL taking only 3 to 5 seconds and fees being negligible. Deploying wXRP first on Solana allows it to maintain these speed and cost advantages, offering users a seamless experience.

The Solana DeFi ecosystem experienced explosive growth in 2025, with TVL surpassing $11.3 billion. Major protocols like Raydium, Orca, and Marinade Finance provide rich application scenarios for wXRP. It can be used in liquidity mining, lending collateral, trading pairs, and more. Additionally, the partnership between Solana and Ripple is deepening; recent integrations of Tether and Tether Gold into Solana further strengthen the chain’s institutional-grade application potential.

wXRP will subsequently expand to Optimism, Ethereum, HyperEVM, and other blockchains. This multi-chain deployment strategy enables wXRP to reach users and liquidity across different ecosystems. Although Ethereum’s transaction costs are high, it has the most mature DeFi ecosystem and largest institutional participation. As Layer-2 on Ethereum, Optimism offers a low-cost compatible environment. HyperEVM is a new high-performance chain focused on institutional-grade applications.

wXRP Multi-Chain Deployment Timeline and Use Cases

First Launch: Solana (Live) - High-frequency trading, DEX liquidity, yield farming

Second Wave: Optimism, Ethereum (TBD) - Blue-chip DeFi protocols, institutional lending, derivatives

Third Wave: HyperEVM and others (TBD) - Enterprise applications, cross-border payments, asset tokenization

LayerZero OFT Standard and 1:1 Custody Mechanism

Hex Trust will utilize LayerZero’s Omnichain Fungible Token (OFT) standard to achieve seamless cross-chain participation. LayerZero is one of the most advanced cross-chain communication protocols, addressing the security and efficiency issues of traditional bridges. The OFT standard allows tokens to flow natively across different blockchains without relying on centralized bridges or wrapping/unwrapping processes.

When users transfer wXRP from Solana to Ethereum, LayerZero protocol burns the tokens on Solana and mints an equivalent amount on Ethereum, with the entire process secured by a decentralized network of validators. This mechanism is safer than traditional bridges since it avoids single points of custody and significantly reduces hacking risks.

The core mechanism of wXRP is its 1:1 support with native XRP. Supported and audited custody by Hex Trust ensures the backing of all wXRP tokens. Issuance and redemption are strictly controlled to maintain supply-demand balance. It also features a token burn mechanism to keep total supply equal to the amount of XRP held. This transparent reserve mechanism ensures wXRP can always be redeemed 1:1 for native XRP.

Hex Trust’s custody of all XRP remains institutional-grade, compliant, with anti-money laundering protections, insurance, and auditability. This institutional custody is a key advantage that sets wXRP apart from other wrapped assets. Many wrapped assets lack reserve transparency or rely on questionable custodians, whereas Hex Trust offers higher security and compliance as a regulated digital asset custodian.

Upon launch, wXRP will have over $100 million in TVL, providing strong initial liquidity. This scale of initial liquidity is rare and indicates backing by large institutions or market makers. Ample liquidity reduces slippage and ensures that wXRP trading on DEXs approaches centralized exchange experience.

Market Reaction and RLUSD Synergy

Hex Trust Chief Product Officer Giorgia Pellizzari stated: “Users of wXRP and RLUSD will benefit from assets built on trusted, compliant infrastructure, enabling XRP and RLUSD to have broader DeFi use cases on supported blockchains.” This hints at a synergistic relationship between wXRP and Ripple’s stablecoin RLUSD.

RippleX Senior Vice President Markus Infanger said: “This naturally aligns with our ongoing RLUSD work, providing a regulated way for people to access DeFi and manage their XRP positions on supported chains.” wXRP also simplifies trading pairs between XRP and RLUSD and offers more liquidity opportunities for traders and DeFi protocols.

As reported by CoinGape, major XRP news was released alongside Ripple’s XRPL v3.0.0 upgrade, which improved network stability and expanded DeFi capabilities, including cross-chain interoperability. After the news, XRP’s price rose over 2% in the past 24 hours, currently trading at $2.03. However, 24-hour trading volume decreased by 29%, indicating waning trader interest. Meanwhile, SOL rebounded over 6% from its 24-hour low of $130.26, but trader reactions to wXRP’s launch on Solana remained tepid, with trading volume down 26%.