XRP Ledger, EVM-compatible sidechains to start operating in Q2 2025 | Achieving interoperability with Ethereum DApps

! On June 11, Ripple announced that XRP Ledger (XRPL) announced that its Ethereum Virtual Machine (EVM) compatible sidechain will officially launch in Q2 2025.

With EVM compatibility, XRPL will be able to seamlessly execute Ethereum-based decentralized applications (DApps) and smart contracts. This will enable existing applications developed in the Ethereum ecosystem to run on XRPL, significantly lowering the entry barrier for developers.

Overview of EVM sidechains and development history

The EVM sidechains of XRPL function as independent blockchains from the main chain. They have their own consensus algorithms, transaction types, rules, and validator nodes, designed to enable the movement of value between both chains without compromising the speed and efficiency of the main chain.

📢 The wait is over… Excited to share that the XRPL EVM Sidechain is now live on Testnet! 🔥🚀

🤝 In a great collaborative effort between the @RippleXDev, @Axelar, @CommonPrefix and @Peersyst teams, we've been able to complete this critical milestone in preparation for the… pic.twitter.com/wa0nXVW41e

— Peersyst Technology (@Peersyst) March 31, 2025

The development of this EVM sidechain has been progressing in phases since 2022. Peersyst Technologies released a test version in October 2022 and began operating it on Devnet, a network for developers. From the beginning, a three-phase development plan was presented, with the final goal of deploying permissionless EVM-compatible sidechains and bridges on the XRPL mainnet.

In September 2024, Ripple announced enhancements to programmability. It aimed to strengthen customization for various use cases for developers, entrepreneurs, and users, and accelerate innovation.

rapid growth and an increase in new entrants

According to Peersyst Technologies, which is responsible for development, the testnet that started operating earlier this year is experiencing rapid growth. The company reported on X that "87 new organizations that had not previously been involved with XRP are contributing to the ecosystem in the form of infrastructure, applications, and demand creation."

Furthermore, it was expressed that "when the mainnet is operational, all of these could become part of the XRP ecosystem, potentially leading to the largest onboarding in XRP history."

XRPL EVM is growing so fast, we needed a map! 🗺️

🌆 87 new entities — most with no prior XRP involvement — are now contributing to the ecosystem: infrastructure, apps, and demand generation.

🌱 In just 2 months of Testnet. Almost all organic.

🌐 XRPL EVM has become the most… pic.twitter.com/EdGKGODYbF

— Peersyst Technology (@Peersyst) June 8, 2025

Technical Specifications and Implementation Features

The EVM sidechain of XRPL is designed as a completely independent blockchain with its own consensus mechanism and transaction rules. The sidechain uses a dedicated set of validation nodes (validators) and builds a separate trusted node list from the main chain's validation nodes. This design allows the main chain and sidechain to operate without interfering with each other, enabling each to achieve optimal performance.

With this implementation, it will be possible to port smart contracts created in Ethereum, integrate with existing wallets such as MetaMask, and use DeFi (decentralized finance) applications. Through dedicated bridging technology, assets can be safely moved between both chains while maintaining the high speed (3~4 seconds) and low cost of XRPL.

Expansion of DeFi and Revenue Opportunities for Institutions

Ripple emphasized that in the development plan announced in February 2025, XRPL is solidifying its position as a leader in "regulatory-compliant on-chain finance." In the next phase of DeFi for institutions, XRPL is expected to be utilized with high liquidity, compliance features, and seamless institutional support.

With the operation of the EVM sidechains, users are offered opportunities to earn revenue through various DeFi applications such as participating in liquidity pools, yield farming, and lending protocols. In particular, the low transaction fees and fast settlement times characteristic of XRP Ledger (XRPL) are expected to provide a significant competitive advantage in DeFi transactions.

Future Outlook and Impact on the Industry

As we approach the mainnet launch in the second quarter, many developers and projects have already expressed their intention to participate in the ecosystem. Ensuring compatibility with EVM will allow the rich tools, libraries, and development know-how cultivated in the Ethereum ecosystem to be utilized on XRPL, which is expected to contribute to improving interoperability across the entire blockchain industry.

The acquisition of the prime brokerage "Hidden Road" by Ripple, among other integrations with financial infrastructure, is progressing, and XRPL is evolving from a mere international remittance platform into a more comprehensive financial services platform. The operation of EVM sidechains is expected to be an important milestone that accelerates this evolution. In Japan, XRPL Japan is also developing community activities and working on promoting adoption domestically.

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