Hex Trust’s High-Stakes Wrapped XRP Gambit: $100M Liquidity Infusion Fuels Bridge Exploit Fears

Institutional custodian Hex Trust announced the launch of Wrapped XRP (wXRP) on Thursday, deploying the token throughout Ethereum, Solana, Optimism, and HyperEVM with $100 million in preliminary liquidity.

The transfer goals to anchor Ripple’s RLUSD stablecoin pairs on EVM chains. XRP remained flat on the information, whereas RLUSD provide held regular at 1.3 billion.

The Signal: XRP Liquidity vs. Security

Hex Trust’s wXRP enters a crowded market already fragmented by Coinbase’s cbXRP and Axelar’s eXRP. The $100 million seed capital is meant to help buying and selling pairs instantly, thereby eliminating the “chilly begin” drawback that usually accompanies new wrapped property.

The construction is a typical 1:1 custodial mannequin: Hex Trust holds the native XRP; customers get the IOU. While this permits DeFi composability, it reintroduces the one level of failure—the custodian—that the XRP Ledger was constructed to get rid of.

The Risk Vector

The timing is precarious. Bridge and custodian exploits have been the perpetrator behind over 50% of all crypto losses in the first half of 2025. By transferring XRP off its native ledger, holders swap protocol safety for good contract threat.

Hex Trust makes an attempt to mitigate this through LayerZero’s Omnichain Fungible Token (OFT) commonplace, which theoretically reduces assault surfaces in comparison with conventional “lock-and-mint” bridges. Yet, the large prize for hackers stays: $100 million sitting in a single custodial pockets.

The Institutional Take: Can XRP Really go to Zero?

While the headline is the $100M liquidity, the actual story is the fragmentation of XRP liquidity. We now have three main artificial XRP variants (cbXRP, eXRP, wXRP) competing for a similar DeFi flows.

For desks, this creates arbitrage alternatives however fractures deep liquidity. Expect spreads to widen throughout these variants till a transparent winner emerges. The actual threat isn’t the wrapper—it’s the bridge. If the Hex Trust multisig is compromised, wXRP goes to zero, whatever the underlying asset’s well being.

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