Despite the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC), interest in its native token, XRP, appears not to have waned as Wrapped.com, a cross-chain wrapped assets provider, recently announced that a wrapped version of XRP would be available on the Ethereum blockchain by December.
According to the announcement, the wrapped token would be fully backed in a ratio of 1:1 and custodial services would be produced by Hex Trust, a Hong Kong-based crypto custodial service provider.
Ripple CTO David Schwartz in a November 2 Twitter post said that the wrapped version of XRP would offer users the ability to utilize wXRP in their various Ethereum Wallets, smart contracts, and Decentralized Finance (DeFi).
The general manager of RippleX, Monica Long, corroborated the earlier sentiments shared by the CTO when she said “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.”
While speaking on the collaboration with Wrapped.com, Calvin Shen, head of sales & business development at Hex Trust, explained how the wrapped XRP would benefit the broader XRP landscape.
According to him, the entire XRP ecosystem would benefit from it, as wrapped tokens are expected to improve DeFi protocols, create connections between isolated liquidity and broaden users’ chance to transact with several decentralized apps.
It is important to add that Ripple revealed in its Q3 XRP Market report, that it saw massive growth in its on-demand liquidity (ODL). This means the use of XRP to facilitate trans-border payment between two currencies surged. The report shows a 130 percent increase in quarter over quarter. All XRP growth in areas such as Total XRP sales and net of purchases are attributable to ODL.