The XRP Ledger (XRPL) has entered a transformative phase with the official 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 engineering firm Peersyst, this new sidechain is engineered to bridge the gap between XRPL’s high-speed, low-cost infrastructure and the vast ecosystem of EVM-based applications.
This innovation allows developers to deploy familiar Ethereum-style smart contracts directly on a chain powered by XRP, the native cryptocurrency of the XRPL. By integrating EVM compatibility, Ripple is unlocking access to millions of existing DeFi protocols, tools, and developer resources—bringing them within reach of XRPL’s established user base.
Enhanced Developer Experience and Cross-Chain Integration
David Schwartz, Chief Technology Officer at Ripple, emphasized that the sidechain preserves the core strengths of the XRPL—speed, scalability, and reliability—while significantly expanding its functional scope. “Developers can now leverage all the tooling they know from Ethereum, but with the performance and efficiency of the XRP Ledger,” Schwartz noted.
The sidechain uses XRP as its native gas token, streamlining transaction fees and incentivizing wallet holders to engage with DeFi applications. With over six million XRP wallets in existence, this move dramatically lowers the barrier to entry for users who previously had limited access to EVM-native dApps.
👉 Discover how blockchain developers are leveraging EVM compatibility for faster DeFi deployment.
Seamless Connectivity Across 80+ Blockchains
A cornerstone of this rollout is the integration with Axelar, a leading cross-chain communication protocol. The sidechain is now connected to more than 80 blockchains, enabling frictionless transfer of assets and data across ecosystems. This includes support for real-world assets (RWAs), stablecoins, and DeFi primitives.
To simplify user experience, the cross-chain bridge launched alongside the sidechain is managed through a unified interface powered by Squid. This eliminates the need for users to manage multiple wallets or navigate complex bridging processes—an often-cited pain point in multi-chain environments.
Georgios Vlachos, Head of the Axelar Foundation, highlighted growing institutional demand: “Banks and fintech companies are actively looking for secure, compliant cross-chain solutions. This collaboration delivers exactly that—without modifying the core XRP Ledger, ensuring stability and regulatory alignment.”
Early Adoption by Leading DeFi Projects
Several prominent DeFi projects have already begun building on the new sidechain, signaling strong early momentum:
- Strobe: Launching a money market protocol for lending and over-collateralized borrowing.
- Securd: Introducing a novel lending model designed to finance leveraged DeFi positions.
- Vertex: Bringing its capital-efficient derivatives trading engine to the XRPL ecosystem.
- Blockscout: Providing a fully functional block explorer for transparency and analytics.
- Goldsky: Supplying real-time indexing and data feeds critical for dApp performance.
These integrations demonstrate not only technical readiness but also confidence in XRPL’s long-term viability as a hub for compliant, high-performance DeFi.
Supporting Tokenized Assets and Institutional Use Cases
Beyond general DeFi expansion, the EVM sidechain strengthens XRPL’s positioning as a preferred platform for tokenized real-world assets (RWAs)—including tokenized dollars, bonds, and commodities. The ledger has long emphasized regulatory compliance and institutional-grade infrastructure, making it attractive for traditional finance players exploring blockchain adoption.
The sidechain supports stablecoins like RLUSD and enables seamless asset tokenization, broadening XRPL’s utility far beyond its original payments-focused design. With growing interest in programmable money and on-chain finance from banks and financial institutions, this upgrade positions XRP as a key enabler of next-generation financial systems.
👉 Explore how tokenized assets are reshaping global finance through blockchain interoperability.
Wormhole Integration Expands Network Reach
In addition to Axelar, Ripple has integrated Wormhole, a cross-chain messaging protocol, to connect the XRPL and its EVM sidechain with over 35 major networks, including Ethereum and Solana. This dual-layer connectivity strategy ensures maximum flexibility for developers and users alike.
Wormhole enables secure message passing and asset transfers across chains, allowing Ethereum-based smart contracts to interact with XRPL-based assets. This opens doors for complex cross-chain applications such as omnichain lending pools, multi-chain yield aggregation, and decentralized identity systems.
Entering the Multichain Era
With the bridge live and early dApps gaining traction, the XRP Ledger is stepping firmly into the multichain era. Its competitive advantages—low transaction costs, sub-second finality, and a growing suite of compliant financial rails—position it as a compelling alternative in an increasingly crowded blockchain landscape.
Unlike many general-purpose blockchains, XRPL maintains a clear focus on regulated, institution-friendly innovation. The EVM sidechain does not compromise this vision; instead, it enhances it by offering familiar tools without sacrificing security or compliance.
Frequently Asked Questions (FAQ)
Q: What is an EVM-compatible sidechain?
A: An EVM-compatible sidechain is a blockchain that supports Ethereum Virtual Machine code, allowing developers to run Ethereum-based smart contracts. It operates alongside a main chain—in this case, the XRP Ledger—while benefiting from its security and connectivity.
Q: Why is XRP being used as the gas token?
A: Using XRP as the native gas token simplifies transactions, leverages existing liquidity, and incentivizes XRPL wallet holders to participate in DeFi. It also unifies economic activity across the ecosystem.
Q: How does this affect XRP’s price or market position?
A: While price movements depend on many factors, increased utility—from DeFi usage to cross-chain activity—can drive demand for XRP as more users hold it for transactions and staking.
Q: Can I use my existing XRP wallet with the sidechain?
A: Yes. Thanks to the unified interface via Squid, users can access the EVM sidechain and its dApps directly from their current XRPL wallets without needing additional setups.
Q: Is this sidechain secure?
A: The sidechain inherits security through its connection to both the XRPL consensus mechanism and trusted cross-chain protocols like Axelar and Wormhole. Regular audits and open-source tooling further enhance trust.
Q: What are real-world assets (RWAs) in this context?
A: RWAs refer to physical or financial assets—like cash, real estate, or bonds—that are represented as digital tokens on a blockchain. The XRP Ledger’s infrastructure supports compliant issuance and trading of such assets.
👉 Start building on a high-speed, compliant blockchain with full EVM support today.
The launch of the EVM-compatible sidechain represents more than just a technical upgrade—it’s a strategic evolution of the XRP Ledger into a comprehensive platform for interoperable DeFi, institutional finance, and cross-chain innovation. As adoption grows and more projects migrate or launch natively, the XRPL is poised to become a central node in the future of open, global finance.