For some time, it has been hinted that the Wrapped XRP (wXRP) may come Ethereum Blockchain’s way. However, it has been confirmed recently, that the Wrapped XRP may soon be on the Ethereum (ETH) blockchain.
According to reports, the team behind the development of the Wrapped XRP is hoping that things will go as planned. If things go as planned, then the users of the Ethereum Blockchain will soon be seeing wXRP getting enlisted on the ETH blockchain.
The recent reports coming in about the Wrapped XRP reveal that it will be enlisted and launched through the Ethereum blockchain in December of 2021. The Wrapped XRP team has made the announcement through the Wrapped.com platform.
With the help of the wrapped XRP, the users and investors of XRP will have the opportunity of mingling with the decentralized finance (DeFi) aspects. This way, the XRP users will be able to carry out swapping, lending, and borrowing for altcoins. They will be able to do it through the native tokens.
The team behind wXRP has revealed that for now, the users only have access to holding, receiving, and sending XRP through the network. However, the wXRP will have so much to offer to the users, providing them with a unique way of interacting with the platform.
The mechanism of the wrapped tokens is that they are stored in a digital vault and exist as digital currencies. The most interesting feature about the wrapped tokens is that they are stored and run on separate blockchain networks.
At present, some of the most prominent and notable wrapped tokens include Wrapped Ethereum and Wrapped Bitcoin. Wrapped Ethereum is used for converting the Ethereum to the standard of ERC-20. On the other hand, Wrapped Bitcoin also operates and circulates through the Ethereum blockchain.
Once the Wrapped XRP goes live, the users will be able to acquire it at an exchange ratio of 1:1 with XRP. As far as the custody for the protocol goes, Hex Trust will be the entity with custody of the Wrapped XRP.
It was just a week back when the chief technology officer (CTO) at Ripple, David Schwartz talked about the launch of Wrapped XRP. He revealed that once launched, the Wrapped XRP will be operable through the multi-chain. This means that the users will be able to use it, transfer it, and receive it inter-chain.
Even after such a long time, the Ethereum blockchain is the number one choice for developers when it comes to launching wrapped tokens. However, with the passage of time, the gas fees on the Ethereum blockchain have grown tremendously, and they are currently revolving around $184.
This is when the Wrapped XRP’s inter-chain operability would work wonders for the entire cryptocurrency community. They would be incurring fewer charges and gas fees as compared to other wrapped tokens through the Ethereum blockchain.