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

Hex Trust to Launch Wrapped XRP (wXRP)

Hex Trust, a leading regulated digital asset platform, announced on December 12, 2025, the launch of wrapped XRP (wXRP), a 1:1-backed representation of XRP designed to expand the asset's utility in decentralized finance (DeFi) and cross-chain applications. The token will be issued and custodied under a secure, automated, and fully compliant environment, enabling authorized merchants to mint and redeem wXRP seamlessly. This development allows XRP to be traded as a liquidity pair alongside Ripple's RLUSD stablecoin on major blockchains like Ethereum and Solana.

wXRP is set to launch with more than $100 million in Total Value Locked (TVL), providing a solid foundation for liquidity and smoother trading from the outset. The asset aims to support broader DeFi activity, including swaps, liquidity provisioning, and yield generation, while maintaining the same redeemability as native XRP. By using regulated custody, Hex Trust ensures that the underlying XRP is protected under institutional-grade security measures.

Hex Trust emphasized that wXRP will initially be available on blockchains such as Solana, Optimism, Ethereum, and HyperEVM, with additional integrations planned for the future. The move responds to growing demand for XRP to be used across the wider crypto ecosystem and among institutional participants.

Giorgia Pellizzari, CPO and Head of Custody at Hex Trust, stated that the initiative expands XRP liquidity in DeFi and cross-chain networks, including broader utility between XRP and RLUSD according to Hex Trust.

Why This Expansion Matters for XRP

The expansion of XRP into DeFi and cross-chain environments represents a strategic shift for the asset. XRP, one of the top five largest digital currencies by market size, is known for its fast, low-cost, and reliable transactions. For over 12 years, it has been widely used for payments, settlement, and moving value across borders. wXRP now allows the asset to be leveraged in DeFi protocols and multichain environments, broadening its use cases beyond traditional financial systems.

By offering a regulated path for cross-chain activity, Hex Trust enables users and institutions to engage in swaps, liquidity provisioning, and yield opportunities without relying on unregulated third-party bridges. This approach reduces counterparty risks and ensures that XRP holders can participate in DeFi activities securely. Markus Infanger, SVP of RippleX, highlighted how this development fits with Ripple's work on RLUSD, providing a regulated way to access DeFi and manage XRP positions across supported chains.

The introduction of wXRP also aligns with broader trends in the crypto industry. Ripple's RLUSD, a U.S. dollar-backed stablecoin, has been gaining traction through partnerships with entities like Mastercard and Gemini. This synergy with RLUSD is expected to enhance the interoperability and utility of XRP across multiple blockchains, supporting both institutional and retail participants.

What This Means for Investors and Market Makers

For institutional liquidity providers, wXRP offers a regulated vehicle to provide deep liquidity for XRP trading pairs with RLUSD. Market makers, OTC desks, and liquidity providers can now support wXRP/RLUSD pairs, contributing to a more liquid and stable market for both assets. DeFi protocols and funds can also integrate wXRP as collateral or liquidity, expanding XRP's participation in multichain environments.

Retail investors and merchants will benefit from the ability to use wXRP across supported chains for swaps, lending, and, where available, rewards programs. Businesses can leverage wXRP and RLUSD in customer-facing services, such as payments, checkout options, or apps that let users buy, sell, or send digital assets. This broad accessibility is a key factor in XRP's potential to grow its user base and drive adoption across diverse ecosystems.

The initial $100 million TVL provides a strong liquidity base, supporting early trading and price discovery. With Hex Trust's institutional-grade custody, users can be confident that the supply of wXRP is always backed 1:1 by native XRP. This transparency and compliance align with the growing regulatory focus on crypto assets, particularly as Ripple and other firms work toward conditional banking charter approvals.

As wXRP becomes more integrated into the DeFi space, the asset could see increased demand from both retail and institutional participants. The expansion into multiple chains, including Solana and Ethereum, positions XRP as a more versatile asset in the evolving crypto landscape. Investors are likely to watch closely as XRP's price and utility evolve in response to these developments.

Risks to the Outlook

Despite the potential benefits, the success of wXRP will depend on several factors. First, the token must gain traction among DeFi protocols and liquidity providers. Without sufficient participation, the asset may struggle to maintain liquidity and price stability. Additionally, regulatory developments could impact the broader crypto market, influencing investor sentiment and adoption.

Market volatility remains a concern, as XRP's price has fluctuated in recent weeks. Analysts are monitoring key resistance levels, such as $2.040–$2.050, to gauge the strength of demand for the asset. A breakdown below current support levels could trigger further downward pressure on the price. Conversely, a sustained breakout above $2.09–$2.10 could signal renewed confidence among traders and investors.

Hex Trust has positioned itself as a leader in regulated digital asset custody, but competition from other firms, including Coinbase and Firelight Finance, may emerge as a challenge. These players are also working to enhance XRP's utility through staking protocols and other DeFi integrations. The ability of wXRP to differentiate itself through its institutional-grade custody and compliance framework will be key to its long-term success.

What Analysts Are Watching

Analysts and market participants are closely tracking the performance of wXRP and its impact on XRP's broader ecosystem. The initial liquidity pool of $100 million is a strong start, but the token will need sustained participation to maintain its relevance in DeFi markets. The integration of RLUSD as a trading pair adds another layer of utility, but its adoption will depend on how effectively it is used in cross-chain applications.

Ripple's strategic partnerships, particularly with Mastercard and Gemini, suggest a broader push to integrate XRP into traditional finance. The success of these initiatives could influence the token's price and adoption beyond the DeFi space. Meanwhile, the recent approval of XRP ETFs in the U.S. has added another dimension to the asset's growth potential, with inflows reaching nearly $1 billion in late 2025.

As XRP continues to expand its cross-chain presence through wXRP, the focus will shift to how well the token performs in real-world applications. The ability of wXRP to deliver on its promise of regulated, multi-chain utility will be critical to its long-term success. Investors, developers, and institutions alike will be watching for signs of adoption and market acceptance in the coming months.