XRP is flooding Ethereum and Solana, but this invisible layer exposes your wallet to a $1.5 billion risk
The proliferation of wrapped XRP across multiple chains introduces significant custodial and bridge risks, potentially exposing users to billions in losses.Summary
Hex Trust recently launched wrapped XRP (wXRP) across Ethereum, Solana, and Optimism, adding to existing wrapped versions like Coinbase's cbXRP and Axelar's eXRP on the XRPL EVM sidechain. This expansion aims to leverage XRP's utility by pairing it with the $1 billion RLUSD stablecoin on high-liquidity EVM chains, offering better execution than the native XRPL DEX.
However, this liquidity gain comes at the cost of replacing the trustless native protocol with multiple layers of trust: custodians holding the underlying XRP (like Hex Trust or Coinbase), cross-chain bridge infrastructure (like LayerZero or Axelar), and complex redemption mechanics. Bridges, in particular, represent a massive attack surface, accounting for over $1.5 billion in DeFi losses in the first half of 2025 alone.
The core issue is a reallocation of risk from protocol consensus to centralized intermediaries and experimental infrastructure. Users holding wrapped XRP depend on the solvency of custodians, the security of bridges, and the functionality of redemption flows, none of which are present in native XRPL settlement. The expansion is fundamentally a trade-off: deeper liquidity in exchange for concentrated, systemic risk across custody, bridge, and smart contract layers.
(Source：CryptoSlate)