XRPL EVM-Compatible Sidechain Launched Strengthening DeFi Integration
- Lyla Velez
- June 30, 2025
- Technology
- 0 Comments
Key Points:
- EVM-compatible sidechain boosts XRPL’s DeFi capabilities and ecosystem’s cross-chain operability.
- XRPL ecosystem benefits from Ethereum dApps’ integration.
- Institutional partnerships enhance XRPL’s financial technology innovation.
Ripple’s Ecosystem Upgrade
Ripple’s ecosystem upgrade signals a pivotal step in bridging Ethereum tools with XRP. The sidechain fosters cross-chain DeFi, potentially increasing network value and liquidity.
EVM-Compatible Sidechain Development
The EVM-compatible sidechain was developed by Peersyst with Ripple’s guidance, enabling full Ethereum-compatible smart contracts on the XRP Ledger. According to the XRPL EVM Team,
The XRPL EVM Sidechain officially launched on mainnet on June 30, 2025, bringing full Ethereum-compatible smart contracts to the XRP Ledger. Developers can now deploy Ethereum dApps on XRPL using familiar tools and languages.
The integration aims to facilitate developers using familiar tools from the Ethereum ecosystem. The XRPL EVM sidechain offers scalability and interoperability, supported by partnerships with Axelar and Wormhole for cross-chain transactions. This strategic collaboration extends Ethereum DeFi opportunities within the XRPL network.
Impact on XRP and Financial Outcomes
The launch impacts XRP by leveraging it as the native gas token while also drawing Ethereum-based assets into the XRPL ecosystem. It encourages a broader DeFi migration, enhancing the ledger’s total value locked. With over 1,000 transactions per second capacity, the sidechain signifies high throughput and low-cost solutions, marking a substantial innovation for the network.
Potential financial outcomes include heightened asset liquidity and more robust cross-chain transactions as XRPL integrates Ethereum’s ecosystem. No regulatory issues are reported concerning this launch, yet the development proposes technological advancements in decentralizing finance. The confluence of multi-chain capabilities is expected to foster growth, aligning with prior successful hybrid integrations such as Polygon and Avalanche.
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