XRP News Today: Hex Trust Launches wXRP to Fuel XRP DeFi Liquidity and Cross-Chain Growth

Hex Trust and XRP Utility Expansion

Hex Trust is set to issue and custody wrapped XRP (wXRP), a 1:1-backed representation of XRP, to expand the asset's utility in DeFi and cross-chain applications. The initiative aims to facilitate the use of XRP beyond the XRP Ledger, allowing it to be traded as a liquidity pair alongside Ripple's RLUSD stablecoin on chains like Ethereum. This move underscores the growing demand for XRP in the broader crypto ecosystem and institutions.

The wrapped XRP will launch with over $100 million in total value locked, according to Hex Trust, providing a strong initial liquidity base for smoother trading and more reliable pricing. The firm said authorized merchants will be able to mint and redeem wXRP in a secure, automated, and fully compliant environment.

Each wXRP will correspond to one XRP held in segregated custody accounts and will be issued or burned only when the underlying asset is deposited or redeemed according to the company. The company emphasized that its institutional-grade custody includes KYC/AML compliance, insurance coverage, and full auditability according to industry sources.

Expanding XRP Utility Across Chains

Hex Trust's wXRP will initially be available on blockchains including Solana, Optimism, Ethereum, and HyperEVM, with plans for future integration on additional chains. This expansion aims to provide a regulated path for cross-chain activity, enabling users and institutions to engage in swaps, liquidity provisioning, and yield opportunities without relying on unregulated third-party bridges. Such an approach helps reduce counterparty risk.

Ripple's SVP, Markus Infanger, noted that the initiative aligns with Ripple's work with RLUSD, giving users a regulated way to access DeFi and manage their XRP positions across supported chains. The move is also expected to enhance interoperability and the broader utility between XRP and RLUSD.

Institutional and Market Confidence in XRP

Hex Trust is not the only firm looking to boost XRP's utility. Coinbase recently launched its cbXRP token on the Base blockchain, with a total supply of around $39 million worth of XRP. Another example is Universal Wrapped XRP according to industry analysis. Additionally, Firelight Finance recently introduced an XRP staking protocol on the Flare network, launching a liquid token called stXRP designed to earn rewards through a DeFi insurance model.

The recent wave of spot XRP exchange-traded fund (ETF) launches in the U.S. from Canary Capital, Bitwise, Grayscale, and Franklin Templeton further illustrates growing institutional interest. These funds are collectively closing in on $1 billion in net inflows since launching on Nov. 13.

DeFi and Cross-Chain Growth

The convergence of centralized finance (CeFi) and decentralized finance (DeFi) is also gaining traction. Coinbase has integrated Solana tokens into its platform, allowing users to trade native Solana tokens through decentralized exchange (DEX) rails without a formal listing. This move allows issuers and builders with sufficient liquidity to gain access to millions of Coinbase users without getting listed.

The development follows a surge in Solana's DeFi ecosystem, including the launch of a Solana-based perpetual swap DEX by Ellipsis Labs and a report from Redstone highlighting the sophistication of DeFi strategies on Solana. Solana is positioned as a dominant force in on-chain finance, with $35.9 billion in peak daily DEX volume.

Liquidity and Infrastructure Innovation

Cross-chain liquidity protocol LI.FI has also made headlines, securing $29 million in a Series A extension led by Multicoin Capital and CoinFund. The funding brings the company's total capital raised to $51.7 million and will be used to expand operations, hire new talent, and develop new features tailored for AI agents and stablecoin use cases. The company plans to launch an open intent and solver marketplace in Q1 2026.

LI.FI's infrastructure powers swaps and cross-chain transfers for major platforms including Robinhood, Binance, Kraken, MetaMask, Phantom, Ledger, Hyperliquid, Circle, and Alipay according to industry reports. The firm has grown to over 100 employees and has handled more than $60 billion in lifetime transaction volume according to company data.

XRP ETFs and Market Performance

The approval of 21Shares' spot XRP ETF by Cboe BZX Exchange marks a significant milestone for the asset. The ETF, which will trade under the ticker TOXR, is pending final SEC clearance and will track the CME CF XRP-Dollar Reference Rate. It charges a 0.3% annual sponsor fee and uses a multi-custodian system to reduce risk. Ripple Markets provided 100 million XRP valued at around $226 million to support initial liquidity.

The growing institutional interest in XRP is reflected in the success of U.S. spot XRP ETFs. These funds have attracted approximately $954 million in collective inflows, with none experiencing a single day of net outflows. Ripple itself has launched an update for the XRP Ledger to enhance network stability and support for DeFi applications.

Regulatory and Legal Developments

The launch of XRP ETFs was influenced by the resolution of the SEC's lawsuit against Ripple. Bitwise's CIO, Matt Hougan, highlighted that the end of the lawsuit allowed XRP to compete on a level playing field and prompted the firm to launch its ETF. The legal clarity has removed a major hurdle for XRP's growth and adoption.

In addition to ETFs, the DeFi space is not without legal challenges. DeFi Technologies Inc. (DEFT) faces a securities fraud lawsuit for alleged violations of the Securities Exchange Act of 1934. Investors who purchased the company's securities between May 12, 2025, and November 14, 2025, may participate in the class action lawsuit according to legal filings.

Conclusion

The expanding utility of XRP through wrapped tokens, DeFi platforms, and ETFs highlights the growing institutional and market confidence in the asset. As Hex Trust, Coinbase, Ripple, and other firms continue to innovate in the DeFi and cross-chain space, XRP is positioning itself as a key player in the evolving digital asset landscape. The regulatory clarity, liquidity improvements, and infrastructure advancements are all contributing to a stronger foundation for XRP's future growth and adoption.