Key Takeaways
Wrapped XRP (wXRP) is a 1:1 backed token that allows XRP holders to use their assets on blockchains other than the native XRP Ledger, including Ethereum, Solana, Optimism, and HyperEVM.
Each wXRP is backed by one XRP held in reserve by Hex Trust, a licensed institutional custodian. The token can be redeemed for native XRP at any time.
The 1:1 peg is maintained through arbitrage: if wXRP trades above or below XRP's price, traders have a financial incentive to wrap or unwrap until prices align.
wXRP uses the LayerZero Omnichain Fungible Token (OFT) standard for cross-chain transfers, enabling XRP liquidity to move across decentralized finance (DeFi) ecosystems without selling native XRP holdings.
wXRP launched on Solana in December 2025 with an initial total value locked exceeding $100 million, and the total supply across all chains reached approximately 50.8 million wXRP by April 2026.
Introduction
Blockchains don't communicate natively. A token issued on the XRP Ledger can't be used on Ethereum or Solana without a bridging mechanism. This is where wrapped tokens come in. Wrapping creates a tokenized representation of an asset on a target blockchain, backed 1:1 by the original asset held in reserve. Wrapped Bitcoin (WBTC) and Wrapped Ether (WETH) are well-established examples. Wrapped XRP (wXRP) applies the same concept to XRP.
wXRP was launched on Ethereum in December 2021 and has since expanded to Solana, Optimism, and HyperEVM. The token is issued and custodied by Hex Trust, a licensed institutional custodian. This article explains how wXRP works, why XRP holders may find it useful, and how it can be used in DeFi applications.
What Is Wrapped XRP (wXRP)?
Wrapped XRP (wXRP) is a token that represents XRP on blockchains other than the XRP Ledger. Each wXRP is backed by one XRP held in reserve, and the two assets are convertible at a 1:1 ratio. The price of wXRP tracks XRP because of how arbitrage keeps the peg in place, explained below.
wXRP is issued by Hex Trust, a licensed and insured institutional custodian based in Asia. XRP reserves are held in segregated institutional custody. Minting and redemption are limited to KYC/AML-compliant authorized participants to meet regulatory requirements. XRP can also be wrapped on other blockchains through alternative wrapping providers, but Hex Trust's wXRP is the primary version supported on major DeFi platforms.
How Does Wrapped XRP Work?
Minting and redemption
When a user wraps XRP, they send native XRP to Hex Trust's custody address. Hex Trust then mints an equivalent amount of wXRP on the target blockchain (such as Ethereum or Solana). When a user redeems wXRP, the process reverses: the wXRP is burned and the original XRP is returned. This two-way convertibility is the foundation of cross-chain interoperability for XRP.
Cross-chain transfers via LayerZero OFT
wXRP uses LayerZero's Omnichain Fungible Token (OFT) standard to move across blockchains. LayerZero is a cross-chain messaging protocol that allows a single unified token supply to be synchronized across multiple networks through message-passing smart contracts. This means a user can hold wXRP on Solana and bridge it to Ethereum (or vice versa) without needing a separate wrapped version for each chain. By early 2026, the total wXRP supply across all chains reached approximately 50.8 million tokens.
How the peg is maintained
The 1:1 peg between wXRP and XRP is maintained by arbitrage. If wXRP trades above XRP's price, traders can wrap cheaper XRP and sell the more expensive wXRP, increasing supply and pushing the price back down. If wXRP trades below XRP's price, traders can buy the cheaper wXRP and unwrap it for XRP, reducing wXRP's supply and pushing its price back up. This self-correcting mechanism keeps the two assets consistently aligned in price.
Why Would Someone Wrap XRP?
Access to DeFi on other blockchains
The XRP Ledger has its own built-in decentralized exchange, but it has a smaller DeFi ecosystem than networks like Ethereum or Solana. Wrapping XRP lets holders participate in DeFi protocols on these networks, including lending platforms, decentralized exchanges, and yield strategies, without selling their XRP. By holding wXRP instead of selling XRP to buy a native token, users maintain price exposure to XRP while accessing DeFi opportunities.
Portfolio diversification without multi-chain management
Managing assets across multiple blockchains requires different wallets, gas tokens, and interfaces. wXRP lets investors who primarily use Ethereum or Solana gain exposure to XRP natively within their preferred ecosystem. Rather than maintaining a separate XRP Ledger wallet, they can hold wXRP alongside their other tokens.
DeFi Use Cases for wXRP
wXRP can be used in liquidity pools on decentralized exchanges (DEXs). By depositing wXRP alongside another token in a liquidity pair, users can earn a share of the trading fees generated by the pool. On Solana, supported platforms include Jupiter Exchange and Meteora, with wXRP also pairing with Ripple's RLUSD stablecoin on several venues. On Ethereum and EVM-compatible chains, platforms like Uniswap and Aave support wXRP for trading and lending use cases.
Keep in mind that liquidity provision carries risks. Impermanent loss can occur when the price ratio between paired tokens changes significantly, resulting in a lower dollar value of your deposited funds compared to simply holding the tokens. Liquidity pools with deeper liquidity and more stable pairings can reduce this risk, but they don't eliminate it entirely.
How to Get wXRP
There are two main ways to obtain wXRP. The first is to purchase it directly on an exchange that lists the token. The second is to wrap native XRP through the official wrapping platform at wxrp.org. To wrap XRP, users connect their XRP Ledger wallet (for example, XUMM) and a destination chain wallet (for example, Phantom for Solana or MetaMask for Ethereum), send XRP to Hex Trust's custody, and receive the equivalent wXRP on the target chain. The process completes in approximately 30 seconds. Redemption follows the same flow in reverse.
Note that minting and redemption are available to KYC/AML-verified participants. Retail users who don't want to go through the direct wrapping process can purchase wXRP on secondary markets without wrapping directly.
Risks to Consider
As with any wrapped token, wXRP introduces risks that native XRP holders don't face:
Custodian risk: wXRP relies on Hex Trust to hold reserves honestly and remain solvent. If Hex Trust were to fail or be compromised, wXRP holders could face losses.
Bridge and messaging risk: LayerZero's OFT standard has strong security properties, but cross-chain messaging protocols are not without risk. Bugs or vulnerabilities in bridge contracts have historically been a significant source of DeFi losses.
Smart contract risk: Any on-chain interaction, including depositing wXRP into a liquidity pool or lending protocol, carries the risk of smart contract vulnerabilities.
Peg risk: Under normal conditions, arbitrage keeps wXRP pegged to XRP. In extreme market conditions or if Hex Trust were unable to process redemptions, the peg could break temporarily.
FAQ
Is wXRP the same as XRP?
No. wXRP is a tokenized representation of XRP on other blockchains. It is backed 1:1 by XRP held in custody and tracks XRP's price through arbitrage, but the two assets are not identical. wXRP exists on Ethereum, Solana, Optimism, and HyperEVM, while native XRP exists on the XRP Ledger. Holding wXRP means trusting Hex Trust to maintain the reserve backing.
Which blockchains support wXRP?
As of early 2026, wXRP is deployed on Ethereum, Solana, Optimism, and HyperEVM. Hex Trust announced these multi-chain deployments using the LayerZero OFT standard. The total supply across all chains reached approximately 50.8 million wXRP by April 2026.
How is the 1:1 peg maintained?
The peg is maintained through arbitrage. Because wXRP can always be redeemed for XRP at a 1:1 ratio (and XRP can always be wrapped into wXRP), any price gap between the two creates a profit opportunity for traders. Their arbitrage activity closes the gap and restores the peg.
What are the risks of holding wXRP?
The main risks include custodian risk (dependence on Hex Trust), bridge and messaging protocol risk (LayerZero OFT), smart contract risk from DeFi platforms, and the possibility of a temporary peg break in extreme conditions. These risks are inherent to wrapped tokens and don't exist when holding native XRP on the XRP Ledger.
Who is Hex Trust?
Hex Trust is a licensed and insured institutional digital asset custodian headquartered in Asia, with a focus on regulated custody solutions for financial institutions. Hex Trust holds the XRP reserves that back wXRP in segregated institutional accounts. It is the sole issuer and custodian of wXRP.
Closing Thoughts
Wrapped XRP offers XRP holders a way to participate in DeFi ecosystems on networks like Ethereum and Solana without selling their native XRP. The 1:1 backing model, maintained by Hex Trust and stabilized through arbitrage, provides a straightforward peg mechanism. The adoption of LayerZero's OFT standard has also expanded wXRP from an Ethereum-only token to a multi-chain asset, which may deepen its DeFi utility over time.
That said, wXRP introduces custody, bridge, and smart contract risks that don't apply to holding native XRP. Whether those trade-offs are worth it depends on a user's specific goals and risk tolerance. As always, researching the protocols and custodians involved before committing funds is important.
Further Reading
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