XRP Hits $1B in ETF Assets as Solana Launch Sparks Security Debate

TLDR

• Ripple CEO Brad Garlinghouse says XRP demand is rising as wrapped XRP (wXRP) launches on Solana
• wXRP is backed 1:1 and lets holders use XRP in DeFi without selling their assets
• XRP exchange-traded products have crossed $1.08 billion in total net assets
• An XRPL validator warned wXRP carries counterparty risk similar to the $292M KelpDAO hack
• Flare has paused FXRP bridging as a precaution following the KelpDAO exploit

Ripple CEO Brad Garlinghouse has pointed to growing momentum for XRP, saying the token now has “more access, more ecosystems, more utility.” His comments come as wrapped XRP, known as wXRP, went live on the Solana blockchain this week.

The launch was a joint effort between the Solana Foundation, LayerZero, and Hex Trust. It connects the XRP Ledger to Solana’s decentralized finance ecosystem through cross-chain bridge technology.

wXRP is backed 1:1 with XRP. That means holders can use their XRP in lending, trading, and yield products without having to sell it. It is already live on platforms including Phantom Wallet, Jupiter Exchange, and Meteora.

This marks a shift in how XRP is being used. The token was once mainly seen as a payments and settlement asset. Now it is being used as collateral inside DeFi networks.

Evernorth CEO Asheesh Birla said XRP is moving beyond simple value transfer into yield-generating financial networks.

ETF Demand Adds to the Momentum

XRP exchange-traded products have crossed $1.08 billion in total net assets. That reflects growing interest from both institutional and retail investors.

Steady ETF inflows combined with cross-chain expansion are tightening liquidity while use cases continue to grow.

Security Warning Follows Launch

Not everyone is treating the launch as purely positive news. An XRP Ledger validator known as VET posted a warning on X shortly after the wXRP rollout.

His warning pointed directly to a $292 million exploit that hit KelpDAO around the same time. In that attack, a hacker minted 116,500 rsETH tokens, a liquid restaking token, and used them as collateral on lending platforms including Aave v3 to borrow ETH and wrapped ETH.

The stolen funds were then moved through Tornado Cash to hide the transaction trail. KelpDAO confirmed it paused rsETH contracts across its mainnet and several Layer 2 networks while it investigates.

KelpDAO said it is working with LayerZero, Unichain, and security experts to assess what happened.

Following the KelpDAO incident, Flare announced it was temporarily pausing FXRP bridging across Ethereum, Base, and other supported networks. The team noted that users holding FXRP on non-Flare networks cannot currently redeem their tokens while the investigation is ongoing.

The pause is described as a precautionary measure while the rsETH exploit investigation continues.

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