What is Wrapped XRP (wXRP)? — adidaswilson

Author Adidas Wilson
5 min readMar 23, 2023

Wrapped XRP (wXRP) is a cryptocurrency token that represents XRP, the native cryptocurrency of the Ripple network, on the Ethereum blockchain. In this article, we will explore the concept of wXRP in more detail, including its benefits, use cases, and how it works.

What is Wrapped XRP (wXRP)?

Wrapped XRP (wXRP) is a tokenized version of XRP that is designed to run on the Ethereum blockchain. It is created through a process known as wrapping, which involves locking up the underlying asset (in this case, XRP) and issuing a token that represents that asset on a different blockchain (in this case, Ethereum).

The process of wrapping XRP involves depositing XRP into a smart contract on the Ripple network, which then issues an equivalent amount of wXRP on the Ethereum blockchain. The wXRP token can then be traded, transferred, or used as collateral for loans or other financial transactions within the Ethereum ecosystem.

Benefits of Wrapped XRP (wXRP)

There are several benefits to using wXRP instead of traditional XRP, including:

Improved Interoperability: By creating a tokenized version of XRP on the Ethereum blockchain, wXRP enables greater interoperability between different blockchain networks. This can help to facilitate cross-chain transactions and make it easier for users to move assets between different blockchain ecosystems.

Increased Liquidity: wXRP can be traded on decentralized exchanges (DEXs) such as Uniswap, which can help to increase liquidity and reduce trading fees. This can make it easier and more cost-effective for users to buy and sell XRP.

Access to DeFi: By creating a tokenized version of XRP on the Ethereum blockchain, wXRP enables users to access the growing decentralized finance (DeFi) ecosystem. This can include using wXRP as collateral for loans, providing liquidity on decentralized exchanges, and participating in other DeFi protocols.

Reduced Counterparty Risk: By using wXRP instead of traditional XRP, users can reduce their counterparty risk, as they are not relying on a centralized exchange to hold and manage their assets. Instead, they can hold their wXRP in a self-custody wallet, which provides greater security and control…

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Author Adidas Wilson

Adidas Wilson was born in Chicago, surviving a near death experience driving off a bridge in an 18 wheeler and getting hit by a train. Author and Motivator