Hex Trust to issue and custody wrapped XRP to expand DeFi utility across multiple blockchains

Hex Trust plans to issue and custody wrapped XRP, or wXRP, a 1:1-backed representation of XRP designed to expand the asset's use in DeFi and cross-chain applications.

The firm, a regulated institutional custodian, said the move will allow XRP to be used beyond the XRP Ledger and traded as a liquidity pair alongside Ripple's RLUSD stablecoin on chains like Ethereum, where RLUSD is available.

In a statement shared with The Block, the company said authorized merchants will be able to mint and redeem wXRP in a "secure, automated, and fully compliant environment." According to Hex Trust, the wrapped asset will remain fully redeemable for native XRP held in its regulated custody, and users will also be able to access yield opportunities through supported DeFi platforms.

Wrapped XRP will launch with more than $100 million in total value locked, which Hex Trust said provides a strong initial liquidity base for smoother trading and more reliable pricing.

"With wXRP, we are expanding XRP liquidity in DeFi and cross-chain networks including broader utility between XRP and RLUSD," Hex Trust CPO and Head of Custody Giorgia Pellizzari said.

Expanding XRP utility

Hex Trust said wXRP will initially be available on blockchains including Solana, Optimism, Ethereum, and HyperEVM, with others planned for future integration. By offering a regulated path for cross-chain activity, the firm said users and institutions can engage in swaps, liquidity provisioning, and yield opportunities without relying on unregulated third-party bridges, helping to reduce counterparty risk.

"There's growing demand to use XRP across the wider crypto ecosystem and institutions, and so we are excited to see Hex Trust address this demand," RippleX SVP Markus Infanger said in the statement. "It also fits naturally with the work we’re doing with RLUSD, giving people a regulated way to access DeFi and manage their XRP positions across supported chains."

Hex Trust highlighted that each wXRP corresponds to one XRP held in segregated custody accounts and will be issued or burned only when the underlying asset is deposited or redeemed. The firm said its institutional-grade custody includes KYC/AML compliance, insurance coverage, and full auditability.

Hex Trust is not the only firm looking to boost XRP's utility, nor is it the first wrapped XRP asset, with Coinbase's cbXRP token going live on Base earlier this year, which has a current total supply of around $39 million worth of XRP. Universal Wrapped XRP is another example.

Last week, Firelight Finance launched an XRP staking protocol on the Flare network, introducing a liquid token called stXRP that aims to earn rewards through a DeFi insurance model.

That followed a wave of spot XRP exchange-traded fund launches in the U.S. from Canary Capital, Bitwise, Grayscale, and Franklin Templeton, with the group closing in on a collective $1 billion in net inflows since launching on Nov. 13.