The cryptocurrency powering the XRP Ledger (XRPL), XRP, will be accessible via other blockchains. According to an official post, Multichain has added support for the XRPL to connect it with Ethereum Virtual Machine (EVM) and non-EVM compliant blockchains.
Formerly known as Anyswap, and later rebranded as Multichain, this cross-chain bridge allows different blockchains to connect and send transactions with each other. Users can leverage this solution to send an asset on a blockchain, such as XRP, to a second network.
Currently, Multichain supports around 40 networks and records $200 million in daily transaction volume, with a total, valued locked (TVL) standing at $6 billion. This makes Multichain one of the most used cross-chain solutions in the crypto space.
The addition of XRP to its solution aims at making the crypto ecosystem more interconnected. The team behind the project claims “blockchain should not be isolated from each other”.
By making the crypto ecosystem more connected, the team behind Multichain claims, it’ll become “healthier”. Zhaojun, Co-Founder of Multichain, said the following about the XRP integration and its potential to attract new users to the DeFi sector:
DeFi users will be able to access the XRPL ecosystem and leverage the power of XRP Ledger, which is known to be extremely fast, cheap and scalable for movement of value. Additionally, it will be a boost for XRP Ledger’s interoperability with the growing blockchain space. Together, we will make joint efforts to build a multi-chain ecosystem.
As part of its integration, XRP holders will be able to conduct a cross-chain transaction to and from other blockchains. Ethereum (ETH), Polygon (MATIC), Avalanche (AVAX), Fantom (FTX), Tether (USDT), USD Coin (USDC), and other digital assets will also be available for transfer to the XRP Ledger.
XRP Joins The Multi-Chain Ecosystem
According to the official post, payment solution company Ripple will support the implementation of XRP to this cross-chain solution. The post added:
(…) capabilities inherent to the XRP Ledger such as auto-bridging allow for assets transferred to the XRPL to access the DEX’s existing liquidity to create synthetic order books for assets. Pathfinding functionality also allows assets to find an efficient path for a trade.
Data from DeFiLlama indicates Multichain is the second bridge in terms of total value locked (TVL). Only Wrapped Bitcoin (wBTC), a solution that enables BTC transactions in the DeFi sector, stands on top with $12 billion in TVL.
Bridges are popular solutions for DeFi users. However, they are considered vulnerable in terms of security. Several of these solutions have been hit by the bad actors over the past year.
Multichain lost $3 million in bridge assets back in January. Fortunately, a white hacker managed to retrieve the funds.
1/A critical vulnerability that affected 6 tokens (WETH, PERI, OMT, WBNB, MATIC, AVAX) has been reported and fixed.
All assets on both V2 Bridge and V3 Router are safe, and cross-chain transactions can be done safely.
— Multichain (Previously Anyswap) (@MultichainOrg) January 17, 2022
At the time of writing, Ethereum trades at $3,012 with a 30% profit in the last 24-hours.
ETH with bullish momentum on the daily chart. Source: ETHUSD Tradingview