XRP Ledger’s EVM-Compatible Sidechain Set to Launch in 2025
After years of testing and anticipation, the XRP Ledger (XRPL) is gearing up for a significant upgrade: the launch of its Ethereum Virtual Machine (EVM)-compatible sidechain, expected in the second quarter of 2025. This move, confirmed by Ripple’s Chief Technology Officer David Schwartz at the recent Apex 2025 event, aims to leverage Ethereum’s smart contract capabilities, allowing XRPL to expand its utility beyond mere payments.
A Strategic Move for XRP
The forthcoming sidechain, developed in collaboration with Peersyst Technology, promises full compatibility with Ethereum’s development tools such as Solidity, MetaMask, and Truffle. By introducing these widely-used resources into the XRPL ecosystem, the initiative addresses gaps in decentralized finance (DeFi) programmability and aims to attract a wider range of developers.
Understanding the Sidechain Mechanism
Central to the functionality of this EVM sidechain is the Axelar network, which will serve as the exclusive bridge for asset transfers between the XRPL mainnet and the new sidechain. This bridge will facilitate the necessary transfer of XRP to create wrapped XRP (wXRP), which will act as the native gas token for transactions on the sidechain. Notably, the architecture connects XRPL to over 69 other blockchain ecosystems, significantly broadening the scope for interoperability and collaboration across the blockchain space.
Performance Efficiency
The sidechain will utilize a Proof-of-Authority (PoA) consensus mechanism, carefully selected for its performance and efficiency. Developers behind the project are aiming for benchmarks that include over 1,000 transactions per second with transaction costs maintained at an exceptionally low rate of below $0.01. This level of efficiency could position XRPL as a formidable player in the rapidly evolving blockchain landscape.
Rigorous Security Measures
In February 2025, the code for the sidechain was subjected to a comprehensive security audit by Informal Systems. This audit led to the identification and resolution of a critical issue concerning a Cosmos SDK module, ensuring that the system is robust and secure. Other findings from the audit were classified as low risk, indicating that the infrastructure has been well-vetted prior to its mainnet release.
Fostering Developer Engagement
This initiative is more than just a technical enhancement; it represents a strategic effort to engage and attract talent from the broader EVM development community. By lowering entry barriers, the sidechain is poised to cultivate a diverse environment conducive to the development of various applications. With over six million wallets active within the XRPL ecosystem, the potential for widespread adoption is significant.
Economic Implications for XRP
The introduction of wXRP as the transaction fee token introduces a novel demand mechanism for XRP itself. This integration could transform the token’s utility, creating a dual role that enhances its value proposition beyond its existing function in facilitating cross-border settlements. Increased activity on the sidechain is likely to correlate with rising demand for XRP, further embedding the token within the evolving ecosystem.
Early Interest and Developer Activity
Activity on the sidechain’s testnet is already notable, with projects including Strobe Finance, Vertex Protocol, and Secured Labs in the process of developing applications. Furthermore, reports indicate that 87 new entities—previously unaffiliated with the XRP ecosystem—are now participating in the testnet, hinting at potential ecosystem growth as the mainnet launch draws closer.
Preserving Core Protocol Integrity
The sidechain’s structural design ensures that the new capabilities can be introduced while maintaining the integrity of the XRPL mainnet, which remains highly optimized for payment processing. This duality allows for innovative features without disrupting the foundational operations of the mainnet, paving the way for a more versatile XRPL ecosystem.
With the mainnet launch of the XRPL EVM Sidechain anticipated in the second quarter of 2025, the stage is set for Ripple to redefine its presence in the blockchain arena, bridging gaps between payment processing and the expansive possibilities afforded by smart contracts and decentralized applications.
