The XRP Ledger (XRPL) has entered a transformative phase in its evolution with the launch of an Ethereum Virtual Machine (EVM)-compatible sidechain, marking a pivotal advancement in decentralized finance (DeFi) interoperability. Developed in collaboration between Ripple and blockchain infrastructure firm Peersyst, this new sidechain enables developers to deploy EVM-based applications directly on the XRPL ecosystem—unlocking seamless cross-chain functionality while leveraging XRP as the native gas token.
This innovation significantly expands access to DeFi for the over six million existing XRP Ledger wallets, bringing them within a single click of powerful financial tools previously limited to Ethereum and other EVM-compatible networks.
Bridging DeFi Ecosystems with EVM Compatibility
By integrating EVM compatibility, Ripple addresses one of the most pressing challenges in blockchain: fragmentation. Developers can now use familiar tools like Solidity, Hardhat, and MetaMask to build and deploy smart contracts on XRPL—without sacrificing the network’s hallmark speed, low transaction fees, or energy efficiency.
David Schwartz, Chief Technology Officer at Ripple, emphasized that the sidechain preserves the core strengths of the XRP Ledger while extending its utility. “Developers get the best of both worlds: the robustness and reliability of XRPL combined with the expansive tooling of the EVM ecosystem,” he said.
This move is not just technical—it's strategic. It positions XRP as a central liquidity bridge in the growing multichain DeFi landscape, where interoperability is no longer optional but essential.
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Seamless Cross-Chain Connectivity Through Axelar and Wormhole
To ensure broad interoperability, the new sidechain connects to over 80 blockchains via Axelar, a leading cross-chain communication protocol. This integration allows for smooth transfer of assets and data across chains, enabling real-world asset (RWA) tokenization, cross-chain lending, and multi-chain DeFi applications.
Georgios Vlachos, head of the Axelar Foundation, noted that financial institutions and fintech companies are actively seeking secure, compliant cross-chain infrastructure. “This partnership delivers enterprise-grade connectivity without altering the core XRP Ledger—making it ideal for regulated environments,” he explained.
Additionally, Ripple has integrated Wormhole, further expanding connectivity to more than 35 major blockchains, including Ethereum and Solana. This dual-bridge approach ensures redundancy, security, and maximum reach for developers building decentralized applications (dApps).
With these integrations, wrapped XRP (wXRP) serves as the gas token on the sidechain, allowing users to interact across ecosystems without managing multiple wallets or navigating complex bridging processes. A user-friendly interface powered by Squid streamlines cross-chain transactions, reducing friction for both developers and end-users.
Real-World Applications Now Live
The launch isn’t theoretical—real projects are already deploying on the EVM sidechain:
- Strobe has introduced a money market protocol supporting lending and over-collateralized borrowing.
- Securd offers innovative leveraged DeFi financing models tailored for institutional use.
- Vertex, known for its high-performance derivatives engine, plans to bring capital-efficient trading to XRPL.
- Blockscout provides a fully functional block explorer for transparency and monitoring.
- Goldsky powers real-time indexing and data feeds critical for analytics and dApp performance.
These early adopters signal strong developer interest and validate the sidechain’s readiness for production-grade applications.
Empowering Institutions with Tokenized Assets
One of the most promising implications of this upgrade is its potential to accelerate tokenized real-world assets (RWAs)—such as tokenized dollars, bonds, and commodities—on a regulated, efficient ledger.
The XRP Ledger has long positioned itself as a platform aligned with compliance and institutional adoption. With EVM compatibility, teams can now use standard Ethereum tooling while tapping into XRP’s deep liquidity pool and fast settlement layer—ideal for issuing stablecoins like RLUSD or creating asset-backed tokens.
For banks and fintech firms exploring blockchain-based settlements, this development offers a trusted, scalable solution that doesn’t require reinventing existing workflows.
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FAQs: Understanding the XRP Ledger’s EVM Sidechain
Q: What is an EVM-compatible sidechain?
A: It’s a separate blockchain that runs parallel to the main network (in this case, XRPL) and supports Ethereum Virtual Machine code. This allows developers to run Ethereum-style smart contracts using familiar tools while benefiting from XRPL’s speed and low costs.
Q: Why does EVM compatibility matter for XRP?
A: It dramatically lowers the barrier for developers already experienced with Ethereum. They can now bring their dApps to XRPL without rewriting code—expanding XRP’s utility beyond payments into DeFi, NFTs, and RWAs.
Q: Can I use my existing XRP wallet?
A: Yes. The integration includes a unified interface via Squid that allows seamless interaction between your XRPL wallet and the EVM sidechain—no need for multiple accounts or complex bridging steps.
Q: Is XRP used as gas on the sidechain?
A: The sidechain uses wrapped XRP (wXRP) as its native gas token, allowing users to pay fees and interact with dApps using XRP they already hold.
Q: How does this affect XRP’s price or market role?
A: While price cannot be predicted, increased utility often correlates with stronger demand. As more dApps launch and users engage with DeFi on XRPL, the need for XRP in transactions and staking could rise.
Q: Is the core XRP Ledger being changed?
A: No. The EVM functionality exists on a separate sidechain. The main XRPL remains unchanged, preserving its security, consensus mechanism, and transaction speed.
A Multichain Future for XRP
With the EVM sidechain live and early dApps gaining traction, the XRP Ledger officially steps into the multichain era. Its unique value proposition—combining speed, low cost, regulatory clarity, and now DeFi interoperability—positions it as a competitive force in the global blockchain ecosystem.
Backed by Ripple’s vision and strengthened by partnerships with Axelar, Wormhole, and Peersyst, XRPL is no longer just a payments network. It’s evolving into a comprehensive platform for cross-border finance, decentralized applications, and real-world asset tokenization.
As developer activity grows and institutional adoption accelerates, the ripple effect of this upgrade could extend far beyond today’s headlines.
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