Despite the regulatory crisis in the United States of America, the Ripple network still appears to be innovative and growing.
Wrapped XRP to Join the Ethereum (ETH) Blockchain Next Month
According to an announcement by Wrapped.com earlier this week, Wrapped XRP (wXRP) will join the Ethereum (ETH) blockchain next month. This move is designed to allow XRP holders to interact with various aspects of decentralized finance (DeFi), such as executing smart contracts for use in borrowing and lending, swapping for altcoins, via their native tokens. Currently, the network can only handle sending, receiving and holding XRP.
The packaging token is a digital currency that is stored in a digital vault and runs on a separate blockchain. Notable packaging tokens include Wrapped Bitcoin and Wrapped Ethereum, which run on the Ethereum blockchain, with the latter converting ETH to the ERC-20 standard. The exchange ratio between wXRP and XRP is 1: 1 and is hosted by Hex Trust.
In a tweet released earlier this week, Ripple’s CTO David Schwartz claimed that wXRP will be “multi-chain”. Although Ethereum is still the blockchain of choice for packaged token adoption, its high gas fee has caused some controversy among crypto enthusiasts.
According to Ycharts.com, the average gas price per Ethereum smart contract execution has risen to $184. The multi-chain integration allows users to wrap their XRP on chains for a much lower gas price.
Ripple Labs is trying to undermine existing financial institutions like the Global Interbank Financial Telecommunications Association with lower fees and faster turnaround times. To this end, the company has developed its business software RippleNet to facilitate cross-border transfers. However, transactions are not conducted in XRP and tokens are only used to provide liquidity.
Ripple vs SEC Lawsuit
In December last year, the U.S.Securities and Exchange Commission (SEC) accused Ripple and its two executives of selling XRP to investors for an unregistered securities offering valued at $1.3 billion between 2010 and 2019.
Ripple’s legal team has no plans to reach a settlement with the SEC and believes that the regulator’s chairman Gary Gensler will end the ongoing litigation. This has caused the lawsuit to continue in 2021.