XRP Ledger is set to launch an Ethereum-compatible EVM sidechain in Q2 2025, aiming to integrate Ethereum smart contracts and decentralized applications into its ecosystem while onboarding new contributors and enhancing DeFi functionalities.
XRPL’s Moves Towards EVM-Compatibility
The XRP Ledger (XRPL) is preparing to take a significant step in expanding its blockchain capabilities, with plans to launch an Ethereum-compatible sidechain in the second quarter of 2025. The move, announced at the APEX 2025 conference in Singapore, positions the XRPL to tap into Ethereum’s vast decentralized application (dApp) and smart contract ecosystem while retaining its core advantage of low-cost transactions.
A New Chapter for XRPL’s Ecosystem
Unveiled by Jaazi Cooper, director of product management at Ripple, and David Schwartz, Ripple’s chief technology officer, the sidechain will run parallel to the XRP Ledger’s mainnet, enabling seamless interaction with Ethereum-based applications. Developed collaboratively by Ripple and blockchain infrastructure firm Peersyst Technologies, the sidechain leverages evmOS’ software stack to deliver full Ethereum Virtual Machine (EVM) compatibility.
The sidechain is already operational on testnet, with mainnet deployment slated for Q2 after completion of ongoing testing phases and validator onboarding. According to Peersyst, the testnet has seen rapid traction since its early 2025 launch, currently handling over 280,000 transactions daily.
Expanding XRPL’s Developer Base
A notable aspect of the sidechain’s rollout is its success in attracting new contributors to the XRPL ecosystem. Ripple highlighted that
“87 new entities – with no prior XRP involvement – are now contributing to the ecosystem: infrastructure, apps, and demand generation.”
This marks one of the largest expansions of the XRPL community in its history.
Peersyst emphasized the onboarding potential of the initiative, stating,
“XRPL EVM has become the most effective tool to onboard talent and projects into the XRP ecosystem. When mainnet goes live, all of it becomes part of the XRP ecosystem — possibly the biggest onboarding in XRP history.”
Integrating DeFi and Smart Contract Functionality
While the XRP Ledger currently supports native smart contracts, it lacks compatibility with the EVM environment preferred by Ethereum developers. The upcoming sidechain aims to bridge this gap, enabling XRPL users to access decentralized finance (DeFi) applications such as liquidity pools, staking services, and a wider range of dApps.
Asset transfers between the sidechain and XRPL’s mainnet will be facilitated by Axelar, which has been designated as the exclusive bridge provider. Wrapped XRP will serve as the native gas token for transactions on the sidechain.
Positioning for Competitive Advantage
This integration represents a strategic move for Ripple as it seeks to solidify XRPL’s standing in the increasingly competitive Layer 1 blockchain sector. By adopting EVM compatibility, XRPL can attract developers and users from the established Ethereum community while offering them lower transaction costs and faster settlement times.
The initiative is part of Ripple’s broader roadmap to enhance XRPL’s infrastructure and utility. The forthcoming mainnet launch is expected to not only expand XRPL’s technical capabilities but also significantly grow its user base and developer ecosystem.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
source; https://cryptodaily.co.uk