Wrapped XRP to debut on Ethereum in December

Wrapped XRP

TL; DR Breakdown

  • Wrapped XRP will debut on Ethereum by December.
  • Schwartz says WXRP will run on multichain.
  • Ripple hopes the SEC will drop its lawsuit.

Despite boasting billions in total value locked, the decentralized finance sector is still opening up to so many innovations. With users now keen to enter the industry, protocols are debuting new kinds of products. In this vein, wrapped.com has announced that it will debut wrapped XRP in the DeFi sector before the end of December. This move is targeted at introducing users of XRP to the DeFI sector. According to wrapped.com, users of XRP will enjoy benefits in the DeFi sector like swapping, lending, and a host of other things.

Wrapped XRP to run on multiple chains

Wrapped.com wants XRP users to interact with various smart contracts and use the XRP token to facilitate transactions. Although the network has gone live, users are only allowed to send and receive XRP at this time. Wrapped digital assets are tokens locked up in vaults and run on different blockchains other than the native currency. Typical examples of wrapped tokens include WBTC and WETH, which are both present on Ethereum.

With the Wrapped XRP debuting on Ethereum, users could exchange it on a 1:1 ratio with XRP. Notably, the custody of the tokens will be handled by Hex Trust. In a tweet sent by the Chief training officer of Ripple, David Schwartz, the Wrapped XRP will be run on more than one chain. With the Ethereum blockchain still leading others in terms of launched wrapped tokens, the constant issues of the network have been a source of concern to market participants.

Ripple and SEC lawsuit still ongoing

In a recent report by Ycharts.com, users pay gas fees of about $184 to execute smart contracts on the Ethereum blockchain. The deployment of the Wrapped XRP on multiple chains will allow holders to wrap their assets on chains charging lower fees compared to Ethereum.

Ripple Labs is still in its quest to disrupt the financial ecosystem, with the platform boasting of charging lower fees and carrying out transactions faster. To make this possible, Ripple uses its software division, RippleNet. However, transactions are not facilitated on the XRP chain as only the token is used.

Ripple was in the news around December 2020 after its founder and CEO were slammed with a $1.3 billion lawsuit. According to the United States SEC, the company conducted an unregistered securities sale between 2010 and 2019. Ripple is not ready to throw in the towel as it has reiterated that it hopes that SEC boss Gary Gensler will drop the lawsuit.

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Written by Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.