XRP ETF Assets Surge Past $1B as Wrapped Token Debuts on Solana Network

Key Highlights

• Ripple’s CEO Brad Garlinghouse highlights increasing XRP adoption as wrapped XRP (wXRP) debuts on Solana network
• The new wXRP token maintains 1:1 backing, enabling XRP owners to participate in DeFi protocols without liquidating holdings
• Total assets in XRP exchange-traded products have surpassed $1.08 billion
• A prominent XRPL validator cautioned that wXRP faces counterparty risks comparable to the recent $292M KelpDAO security breach
• Flare network has temporarily suspended FXRP bridging operations following the KelpDAO security incident

Ripple’s CEO Brad Garlinghouse has highlighted accelerating adoption for XRP, stating the digital asset now enjoys “more access, more ecosystems, more utility.” These remarks follow the introduction of wrapped XRP, or wXRP, on Solana’s blockchain network earlier this week.

The deployment resulted from collaboration among the Solana Foundation, LayerZero, and Hex Trust. The initiative bridges the XRP Ledger with Solana’s thriving decentralized finance infrastructure using cross-chain bridging protocols.

The wXRP token maintains a 1:1 backing ratio with XRP. This structure allows token holders to engage with lending protocols, trading venues, and yield-generating products while maintaining their XRP exposure. The token has already integrated with multiple platforms, including Phantom Wallet, Jupiter Exchange, and Meteora.

This development represents an evolution in XRP’s utility profile. Previously positioned primarily as a payments and cross-border settlement instrument, the token is now gaining traction as collateral within DeFi ecosystems.

Evernorth CEO Asheesh Birla noted that XRP is transitioning beyond basic value transfer into yield-producing financial infrastructure.

Investment Product Demand Continues Building

Total net assets in XRP exchange-traded products have surpassed $1.08 billion. This milestone demonstrates expanding appetite from institutional investors and retail market participants alike.

Consistent capital flows into ETF products, coupled with multi-chain expansion initiatives, are constraining available liquidity while utility applications multiply.

Validator Raises Security Concerns Post-Launch

The launch hasn’t been universally celebrated without reservations. An XRP Ledger validator operating under the identifier VET published a cautionary message on X following the wXRP deployment.

The warning referenced a concurrent $292 million security breach affecting KelpDAO. During this attack, an exploiter created 116,500 rsETH tokens—a liquid restaking asset—and deployed them as collateral across lending protocols such as Aave v3 to extract ETH and wrapped ETH.

The compromised assets were subsequently channeled through Tornado Cash to obfuscate their movement. KelpDAO acknowledged the incident and halted rsETH smart contracts on its mainnet and multiple Layer 2 solutions during the ongoing investigation.

KelpDAO indicated it is collaborating with LayerZero, Unichain, and cybersecurity specialists to determine the breach’s root cause.

In response to the KelpDAO situation, Flare disclosed it had temporarily suspended FXRP bridging functionality across Ethereum, Base, and additional supported chains. The project clarified that users holding FXRP on external networks currently face redemption restrictions during the investigation period.

Flare characterized the suspension as a protective measure implemented while the rsETH exploit inquiry progresses.

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