wXRP to launch on the Ethereum blockchain in December
Wrapped XRP (wXRP), courtesy of Wrapped.com, will be going to the Ethereum (ETH) blockchain next month if everything goes according to plan. The move will allow XRP holders to use their native tokens to interact with components of decentralized finance, or Defi, such as executing smart contracts for use in borrowing and lending, and trading for altcoins. At the moment, the network can only send, receive, and keep XRP.
Wrapped tokens are digital currencies that are kept safe in a digital vault and run on their own blockchain. Wrapped Bitcoin, which runs on the Ethereum blockchain, and Wrapped Ethereum, which converts ETH to the ERC-20 standard, are two notable wrapped coins. Hex Trust would provide custody for wXRP, which would have a 1:1 exchange ratio with XRP.
Ripple’s CTO, David Schwartz, said in a tweet earlier this week that wXRP will be “multichain.” While Ethereum is still the preferred network for launching wrapped tokens, its hefty gas prices have sparked some debate among crypto fans. The average gas price per Ethereum smart contract execution has risen to $184, according to Ycharts.com. Users may be able to wrap their XRP on networks with far lower hash rates if multichain integration is implemented.
Ripple Labs aims to disrupt established financial institutions through reduced fees and faster settlement times, such as the Society for Worldwide Interbank Financial Telecommunication. To do this, RippleNet, the company’s enterprise software for allowing cross-border money transfers, was developed. However, XRP is not utilized for transactions, and it is just used to offer liquidity.
The US Securities and Exchange Commission (SEC) sued Ripple and two of its executives of selling XRP to investors for $1.3 billion in unregistered securities sales between 2010 and 2019. Ripple’s legal team has no intentions to settle with the SEC and is convinced that Gary Gensler, the regulatory agency’s chairman, would dismiss the case.