The XRP Ledger (XRPL), a blockchain originally developed by the founding team behind Ripple, has taken a transformative step forward with the official launch of its EVM-compatible sidechain. This new development enables Ethereum-based smart contracts and decentralized applications (dApps) to run seamlessly on the XRPL network—ushering in a new era of cross-chain decentralized finance (DeFi) innovation.
With this upgrade, developers can now deploy Ethereum Virtual Machine (EVM)-compatible dApps directly onto the XRPL ecosystem. The move combines XRPL’s renowned speed and low-cost transactions with the rich developer tooling and vast application landscape of Ethereum, making it easier than ever to build scalable, interoperable financial solutions.
👉 Discover how blockchain developers are unlocking new DeFi possibilities with EVM integration.
Bridging Two Powerhouses: Ethereum and XRPL
At the core of this advancement is the XRPL EVM Sidechain, a parallel blockchain that runs alongside the main XRP Ledger. It is fully compatible with Ethereum’s development environment, meaning tools like Solidity, Truffle, Hardhat, and MetaMask work out of the box. This lowers the barrier for Ethereum developers looking to expand their applications into new ecosystems without rewriting code.
Crucially, the sidechain uses XRP as its native gas token, aligning economic incentives across both chains and giving XRP a strengthened utility role in smart contract execution. This integration not only increases demand potential for XRP but also enhances user experience by eliminating the need for multiple tokens for gas fees.
The connection between the XRPL EVM Sidechain and the broader multi-chain universe is powered by Axelar, a decentralized interoperability protocol. Through Axelar’s cross-chain messaging layer, the sidechain gains access to over 80 blockchains—including Ethereum, Cosmos, Avalanche, and Polygon—enabling secure asset transfers and data communication.
Squid serves as the official cross-chain transfer interface, streamlining how users and dApps move assets between XRPL and other networks.
“The XRPL EVM Sidechain introduces a flexible environment for developers to deploy EVM-based applications, while maintaining a connection to XRPL’s efficiency. It extends the capabilities of the ecosystem without changing the fundamentals that make XRPL reliable,” said David Schwartz, CTO of Ripple, in a recent statement.
Key Features Driving Adoption
Several technical advantages position the XRPL EVM Sidechain as a compelling platform for next-generation DeFi:
- Fast Block Times: Significantly faster than Ethereum’s average block time, enabling near-instant transaction finality.
- Low Transaction Costs: Built on XRPL’s efficient consensus mechanism, gas fees remain minimal even during peak usage.
- Access to Millions of Wallets: Over 6 million existing XRPL wallet holders can now interact with DeFi protocols and dApps.
- Enterprise-Grade Validation: Backed by a decentralized validator network of more than 25 companies, ensuring high uptime and trustless operation.
- Cross-Chain Interoperability: Native integration with Axelar unlocks composability across dozens of ecosystems.
These features collectively address long-standing pain points in Ethereum’s ecosystem—high gas fees, slow confirmation times, and limited scalability—while preserving full compatibility with the world’s most widely used smart contract standards.
Strategic Partnerships Accelerate Ecosystem Growth
The success of any blockchain hinges not just on technology but on ecosystem momentum. The XRPL EVM Sidechain has already attracted key players across infrastructure, oracles, and application development.
Band Protocol provides decentralized oracle services, allowing smart contracts on the sidechain to securely access real-world data such as price feeds and market information. This is essential for DeFi applications like lending platforms, derivatives, and automated market makers.
Grove offers public RPC endpoints, making it easier for developers and users to connect to the sidechain without running their own nodes. This lowers entry barriers and improves accessibility for startups and independent builders.
Emerging DeFi projects such as Strobe, Securd, and Vertex are preparing to launch native applications on the sidechain, signaling strong early developer interest.
Additionally, Wormhole, one of the most widely adopted cross-chain messaging protocols supporting over 200 applications across 35+ blockchains, plans to integrate with the XRPL EVM Sidechain. This will further expand interoperability options and open doors for multichain asset bridging and messaging.
👉 See how leading DeFi platforms are leveraging cross-chain infrastructure for growth.
Unlocking Institutional-Grade Use Cases
As Georgios Vlachos, director at Axelar Foundation and co-founder of the Axelar protocol, noted:
“Crypto is entering an exciting phase as institutions and enterprises are pursuing compelling new use cases. The XRP Ledger EVM Sidechain is positioned to capture this rising demand, and Axelar is the secure, institutional-grade connector that will make it possible.”
This sentiment reflects a broader trend: enterprises are increasingly exploring blockchain for payments, asset tokenization, supply chain tracking, and programmable finance. The XRPL EVM Sidechain offers a regulated-friendly environment with predictable transaction costs and rapid settlement—ideal for institutional adoption.
For example, financial institutions could deploy private liquidity pools or stablecoin payment rails on the sidechain while benefiting from XRP’s established presence in cross-border payments. Similarly, central bank digital currency (CBDC) pilots could leverage XRPL’s fast settlement layer for domestic or international transactions.
Core Keywords Identified
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- XRP Ledger
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- cross-chain DeFi
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- Ethereum Virtual Machine
- XRP as gas token
- blockchain interoperability
- Axelar bridge
These terms reflect high-volume queries related to smart contracts on XRPL, DeFi expansion, and enterprise blockchain use cases.
Frequently Asked Questions (FAQ)
Q: What is an EVM-compatible sidechain?
A: An EVM-compatible sidechain is a separate blockchain that supports Ethereum Virtual Machine (EVM) code. This allows developers to deploy Solidity-based smart contracts and dApps without modification, enabling seamless migration from Ethereum.
Q: Does the XRPL EVM Sidechain use XRP for gas?
A: Yes. Unlike many other EVM chains that use ETH or a native token, this sidechain uses XRP as its gas token, simplifying user experience and increasing XRP’s utility in DeFi.
Q: How do I bridge assets to the XRPL EVM Sidechain?
A: Assets can be transferred using the Axelar network via Squid, the official cross-chain transfer interface. This allows secure movement of tokens between XRPL and other blockchains.
Q: Can I use MetaMask with the XRPL EVM Sidechain?
A: Yes. Since it’s fully EVM-compatible, standard Ethereum wallets like MetaMask work directly with the sidechain after configuring the correct network settings.
Q: Is the XRPL EVM Sidechain decentralized?
A: While developed in collaboration with Peersyst and Ripple, the sidechain operates on a validator network of over 25 independent organizations, promoting decentralization and resilience.
Q: What types of dApps are being built on the sidechain?
A: Early projects include DeFi protocols (lending, trading), oracles (Band Protocol), infrastructure providers (Grove), and cross-chain bridges (Wormhole), with more expected as adoption grows.
👉 Start building on one of the fastest-growing EVM-compatible ecosystems today.
Final Thoughts
The launch of the XRPL EVM Sidechain marks a pivotal moment in the evolution of the XRP Ledger. By embracing Ethereum compatibility while retaining its unique strengths—speed, cost-efficiency, and institutional appeal—XRPL is positioning itself as a major player in the next wave of cross-chain innovation.
Developers now have a powerful new platform to build scalable dApps with global reach. Enterprises gain access to a compliant, high-performance environment for deploying real-world blockchain solutions. And users benefit from faster transactions, lower fees, and expanded access to DeFi services—all powered by XRP.
As blockchain continues to converge toward greater interoperability, initiatives like this demonstrate how legacy networks can adapt and thrive in a multi-chain future.