Cryptocurrency

Binance Completes the Integration of Wrapped XRP (wXRP). Here’s Why This Is Important

Binance, the largest crypto exchange by trading volume, has announced that it has completed the integration of Wrapped XRP and had opened deposits for wXRP on Ethereum (ERC).

In the report, users were urged to find their assigned XRP deposit addresses on the Ethereum Network (ERC20) within the Deposit Crypto page.

Read Also: XRP Whales Have Moved Over 1.6 Billion Coins in the Last 24 Hours

The report added that the exchange will open withdrawal for wXRP on Ethereum Network (ERC20) at a later date.

Below are the three important things about the new integration:

  1. wXRP deposits will be credited as XRP and it is ready for trading immediately.
  2. Withdrawals of XRP on Ethereum Network (ERC20) will be wXRP.
  3. wXRP contract address: 0x39fBBABf11738317a448031930706cd3e612e1B9

Read Also: CryptoLaw Founder John Deaton Questions SEC for Targeting XRP While Ethereum (ETH) Is Given Free Pass

Why This New Integration Is Important

Back in October 2021, Wrapped in collaboration with Hong Kong-based crypto custodian Hex Trust, announced that Wrapped XRP (wXRP), a digital asset backed 1:1 by XRP, will make the cross-chain jump into Ethereum-based decentralized finance (DeFi) starting in December 2021.

According to Mason Borda, CEO of Tokensoft, the driving force behind Wrapped, the new connectivity for XRP holders will allow access to various DeFi applications, such as lending and borrowing, among others.

In an interview, Mason Borda noted:

“We do a lot of these wrapped tokens, but we just think this wrapped XRP asset is going to be huge. It’s a top ten digital asset and has one of the biggest communities in crypto.”

What Is Wrapped XRP (wXRP) and It’s Important

Wrapped XRP is a token pegged to XRP that can be used on blockchains other than XRP Ledger. The wrapped asset is exchangeable 1:1 with XRP held in reserve by a custodian that facilitates wrapping XRP and unwrapping wrapped XRP.

The price of wrapped XRP is pegged to XRP due to arbitrage. When the price of wrapped XRP is higher, traders wrap the cheaper XRP and then sell wXRP, lowering its price. When the price of wrapped XRP is lower, traders buy and unwrap wXRP and sell XRP, increasing wXRP’s price. This creates a steady peg between the two tokens.

Wrapping XRP allows you to use the DApp ecosystem of a different blockchain and diversify your portfolio on that chain. If you want to get started, you can purchase Wrapped.com’s ERC-20 Wrapped XRP (wXRP) via Binance.

Read Also: Crypto Whales Accumulated about 190 Million XRP in the Last Three Months

The reserves of wXRP are managed by the licensed custodian Hex Trust, and you can begin wrapping wXRP by signing up for an account with Wrapped. You can use wXRP to stake in liquidity pools by providing it in a token pair on platforms including Uniswap and Sushiswap.


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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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