How Do Gatehub's Issued Tokens Work

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Gatehub plays a pivotal role in expanding the utility of the XRP Ledger (XRPL) by issuing a range of tokens that bridge assets from other blockchains. These tokens allow users to leverage the speed, low cost, and decentralized exchange (DEX) capabilities of the XRPL while trading or holding familiar digital assets. This guide breaks down how Gatehub’s issued tokens function, their benefits, and how they enable cross-chain interoperability.

Understanding Gatehub and Its Role

Gatehub is a financial services platform designed to support digital asset management, trading, and issuance on the XRP Ledger. It acts as a gateway between different blockchain networks—particularly Ethereum and XRPL—by issuing representative tokens on the XRPL that are pegged 1:1 to their original counterparts.

These issued tokens are not native assets of the XRPL but are instead IOUs (I Owe You) backed by real reserves held by Gatehub. This system enables seamless asset transfers across incompatible blockchains while preserving trust and value equivalence.

👉 Discover how to move assets between blockchains quickly and securely.

List of Gatehub-Issued Tokens on XRPL

Gatehub has issued 16 tokens on the XRPL, including:

Each of these tokens represents an asset originally existing on another blockchain—most commonly Ethereum or Flare Network—but is now accessible for use directly on the XRP Ledger.

Why Use Gatehub’s Issued Tokens?

1. Access to Stablecoins on XRPL

With Gatehub’s issuance of USDC and USDT on the XRPL, users can now trade and transact in stablecoins without leaving the XRP Ledger ecosystem. These stablecoins offer price stability and are ideal for traders seeking to hedge volatility or conduct fast, low-cost transactions.

You can deposit fiat-backed USDT or USDC from Ethereum into Gatehub, which then credits you with an equivalent amount of the same token on XRPL. This opens up opportunities for using stable assets within XRPL’s native DEX.

2. Cross-Chain Asset Utilization

Tokens like GALA and WXRP allow holders to use assets from the Ethereum network within the XRPL environment. For instance:

This cross-chain representation means you’re not limited by where an asset was originally issued—you can benefit from its utility across ecosystems.

3. Speed and Cost Efficiency

The XRP Ledger settles transactions in under five seconds with fees less than one cent. By using Gatehub-issued tokens, you gain all these advantages:

Imagine doing what would normally be an expensive Ethereum transaction—for a fraction of the cost and time.

👉 Learn how fast blockchain settlements can transform your trading experience.

How Token Bridging Works: The Mechanics

When Gatehub issues a token like USDC or SGB on the XRPL, it creates a trust line between the user and Gatehub’s issuing address. Here’s how it works:

  1. You send your Ethereum-based USDC to Gatehub’s deposit address.
  2. Gatehub verifies receipt and issues an equal amount of USDC on the XRPL to your wallet (e.g., Xumm).
  3. You now hold a token pegged 1:1 to real USDC—but operating on XRPL.
  4. When you want to redeem it, you send the XRPL token back to Gatehub, who releases the original asset on Ethereum.

This process ensures that value remains consistent across chains while respecting network incompatibilities.

Important Note: XRPL tokens issued by Gatehub (e.g., USDC+rHub...) are not the same as ERC-20 tokens. They exist only on the XRP Ledger and cannot be sent directly to Ethereum wallets.

Case Study: SGB on Songbird vs. XRPL

In September 2021, Flare Networks launched Songbird, its canary network, distributing 15 billion SGB tokens. Shortly after, on October 11, 2021, Gatehub issued 15,942,003 SGB tokens on the XRPL.

While both share the symbol SGB, they operate on separate blockchains:

Despite being different tokens, Gatehub allows two-way redemption:

This flexibility empowers users to participate in both ecosystems without losing liquidity or control.

FAQ: Common Questions About Gatehub Tokens

Q: Can I send my Gatehub-issued USDT directly to an Ethereum wallet?
A: No. The USDT on XRPL is not ERC-20 compatible. To move it to Ethereum, you must redeem it through Gatehub first.

Q: Are Gatehub-issued tokens safe?
A: Safety depends on trust in Gatehub as the issuer. Always verify trust lines before accepting any IOU token.

Q: Can I trade Gatehub tokens on the XRPL DEX?
A: Yes! All Gatehub-issued tokens can be traded peer-to-peer on the decentralized exchange built into the XRP Ledger.

Q: Do exchanges like Binance or Coinbase support Gatehub’s XRPL tokens?
A: Most centralized exchanges do not currently support IOUs from third-party gateways like Gatehub. Check directly with your exchange for supported token lists.

Q: How do I redeem my XRPL GALA for Ethereum GALA?
A: Send your XRPL GALA back to your Gatehub account, then request withdrawal of ERC-20 GALA to your Ethereum wallet.

Q: Is there a fee for converting tokens via Gatehub?
A: Conversion may involve small processing or network fees. Refer to Gatehub’s official fee schedule for details.

Key Considerations Before Using Issued Tokens

Final Thoughts

Gatehub’s token issuance model significantly enhances the functionality of the XRP Ledger by bringing external assets on-chain. Whether you're interested in stablecoins like USDC and USDT, gaming tokens like GALA, or ecosystem tokens like SGB and FLR, Gatehub provides a reliable bridge that maintains value integrity across networks.

By combining fast settlement, low fees, and decentralized trading, these issued tokens unlock new possibilities for users who want more flexibility without sacrificing security.

👉 Start exploring multi-chain asset management today—fast, secure, and simple.

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