Wrapped XRP will be available on the Ethereum (ETH), blockchain next month if all goes according to plan. Wrapped.com. This move will allow Ripple (XRP), holders, to interact with Decentralized Finance or DeFi aspects, such as smart contracts to borrow and lend, swapping for other altcoins, using their native tokens. The network currently can only send, receive, and hold XRP.
Wrapped tokens, digital currencies that are stored in digital vaults and run on their own blockchain, are digital currencies. Wrapped tokens that are notable include Wrapped Bitcoin which runs on the Ethereum blockchain, and Wrapped Ethereum which converts Ethereum to the ERC-20 standard. wXRP would be exchangeable in a 1:1 ratio with XRP with custody provided through Hex Trust.
David Schwartz (Ripple’s chief trainer officer) claimed that wXRP will be “multichain” in a tweet earlier this week. Although Ethereum is still the preferred blockchain for launching wrapped tokens it has been criticized by crypto enthusiasts for its high gas costs. According to Ycharts.com the average gas price for an Ethereum smart contract execution has risen from $184 to $184. Multichain integration may allow users to wrap their cryptocurrency on chains with lower gas prices.
Wrapped XRP will soon be available on Ethereum! This is great news for anyone who wants to access XRP in Ethereum wallets, DeFi and smart contracts. It’s a multichain, after all. https://t.co/36shyqF0Nj
— (@JoelKatz) November 1, 2021
Ripple Labs aims to disrupt financial institutions such as the Society for Worldwide Interbank Financial Telecommunication by offering lower fees and quicker settlement times. RippleNet is the company’s enterprise software that facilitates cross-border money transfers. Transactions are not done in XRP and the coin is used only to provide liquidity.
The United States Securities and Exchange Commission (SEC), charged Ripple and two executives with $1.3 billion in unregistered securities sales through the sale of XRP to investors from 2010 and 2019. Ripple’s legal team is not looking to settle with the SEC, and is optimistic that Gary Gensler (the regulatory agency’s chairman) will drop the ongoing suit.