Ripple to Enhance XRP Ledger with Ethereum-Compatible Smart Contracts

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The XRP Ledger (XRPL) is stepping into a new era of blockchain innovation with the upcoming integration of Ethereum-compatible smart contracts. Ripple, best known for its cross-border payment solutions and the XRP digital asset, has announced the development of an EVM-compatible sidechain designed to unlock seamless cross-chain functionality between XRPL and Ethereum. This strategic move aims to bridge two major blockchain ecosystems, empowering developers and expanding real-world use cases for XRP.

👉 Discover how blockchain interoperability is shaping the future of decentralized finance.

Bridging XRPL and Ethereum: A New Sidechain Revolution

At the heart of this upgrade is the XRPL EVM Sidechain, a dedicated protocol built in collaboration with Peersyst, a leading blockchain technology firm. By leveraging Ethereum Virtual Machine (EVM) compatibility, the sidechain allows developers to deploy decentralized applications (dApps) using Solidity, Ethereum’s widely adopted programming language. This lowers the entry barrier for Ethereum-native developers looking to expand into the XRPL ecosystem.

The sidechain is expected to go live within the next few months, marking a pivotal milestone in Ripple’s long-term vision for XRPL. Since 2022, Ripple has been testing EVM integration, and this latest development signals a shift from experimental phases to production-ready infrastructure.

Seamless Cross-Chain Connectivity via Axelar

A critical enabler of this cross-chain vision is Axelar, a decentralized interoperability network. Axelar will serve as the backbone for cross-chain communication, connecting the XRPL EVM Sidechain with over 55 blockchains across the decentralized landscape. This integration dramatically expands XRPL’s reach, allowing assets and data to flow freely between ecosystems.

Developers building on the XRPL EVM Sidechain will benefit from access to a vast network of DeFi protocols, NFT markets, and Web3 applications beyond Ethereum. Whether it’s bridging liquidity, enabling cross-chain swaps, or integrating oracles, Axelar’s infrastructure ensures smooth and secure interactions.

This level of interoperability is not just technical—it’s strategic. By aligning with established interoperability standards, Ripple positions XRPL as a core participant in the multi-chain future, rather than a siloed network.

Wrapped XRP (eXRP): The Native Token of the Sidechain

On the new EVM-compatible sidechain, Wrapped XRP (eXRP) will serve as the primary utility token. eXRP is a tokenized version of XRP, pegged 1:1 and designed to operate across non-native blockchains. Its adoption as the sidechain’s base asset ensures consistency and liquidity while enabling XRP holders to participate in DeFi activities such as staking, lending, and yield farming.

For users and developers alike, this means:

The use of eXRP also reinforces XRP’s utility beyond payments—transforming it into a multi-functional digital asset capable of powering smart contracts and decentralized ecosystems.

Developer-Centric Design: Building for the Community

Ripple has emphasized its commitment to developer engagement throughout this rollout. The company is actively inviting DeFi developers and community members to provide feedback on the design and functionality of the new smart contracts. This open collaboration model ensures that the final product meets real-world needs and aligns with developer expectations.

By creating a familiar environment—complete with EVM support, Solidity compatibility, and Ethereum-like tooling—Ripple lowers the learning curve for developers already experienced with Ethereum. This approach could accelerate adoption and attract high-quality projects to the XRPL ecosystem.

However, some members of the XRP community remain cautious. Skepticism persists around execution timelines and tangible outcomes.

"Not gonna lie Brad but I'm not excited at all.
I've heard it all before.
Will be excited when I see real world use cases I need and that helps or that are fun, or when XRP price retires me.
Till then, not excited. Not one bit."
— Guy on the Earth (@guyontheearth)

This sentiment reflects a broader demand: real-world utility over announcements. While technical upgrades are promising, long-term success will depend on actual dApp adoption, user engagement, and measurable improvements in XRP’s utility.

Mainnet Smart Contracts: Still in Research

While the EVM sidechain represents a near-term leap forward, Ripple has also revealed it’s exploring the possibility of deploying smart contracts directly on the XRPL mainnet. However, this initiative remains in the research phase, with no official timeline for release.

This delay has sparked debate within the community. Some argue that native smart contracts on XRPL would offer better security, lower latency, and tighter integration than a sidechain solution. Others believe the sidechain approach is a pragmatic first step—allowing innovation to proceed without risking the stability of the core ledger.

Regardless of the path, Ripple’s dual-track strategy—sidechain now, mainnet research later—demonstrates a balanced approach to innovation and risk management.

Market Reaction and XRP Price Trends

The announcement has contributed to positive momentum in XRP’s market performance. As of the latest data, XRP is trading at $0.56, reflecting a 12% increase over the past 30 days. This uptick follows a favorable court ruling in Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

A federal judge recently ordered Ripple to pay $125 million** in penalties—far less than the nearly **$1.9 billion initially sought by the SEC. The ruling was widely interpreted as a partial victory for Ripple, reinforcing market confidence in XRP’s regulatory standing.

👉 See how regulatory clarity is driving institutional interest in digital assets.

Frequently Asked Questions (FAQ)

What is the XRPL EVM Sidechain?

The XRPL EVM Sidechain is a parallel blockchain developed by Ripple and Peersyst that supports Ethereum Virtual Machine (EVM) compatibility. It enables developers to build and deploy smart contracts using Solidity and connect XRPL with Ethereum and other EVM-compatible networks.

How does the sidechain improve XRPL?

It enhances XRPL by adding support for smart contracts and dApps, enabling cross-chain interoperability via Axelar, and attracting Ethereum developers through familiar tools and programming languages.

What is Wrapped XRP (eXRP)?

eXRP is a tokenized version of XRP designed to operate on non-native blockchains like the XRPL EVM Sidechain. It maintains a 1:1 peg with XRP and serves as the primary gas and utility token on the sidechain.

Can I use my existing XRP on the sidechain?

Yes—XRP can be bridged to the sidechain through a wrapping mechanism, converting it into eXRP for use in DeFi applications, dApps, and smart contracts.

Will smart contracts be available on the XRPL mainnet?

Ripple is researching native smart contract functionality for the XRPL mainnet, but no timeline has been announced. The current focus is on launching and optimizing the EVM sidechain.

How does Axelar enable cross-chain transfers?

Axelar provides decentralized messaging and token transfer services across blockchains. It acts as a secure bridge between the XRPL EVM Sidechain and over 55 other networks, enabling seamless asset and data movement.

👉 Explore how cross-chain platforms are redefining digital asset liquidity.

Core Keywords

With this latest upgrade, Ripple is not just enhancing technology—it’s expanding opportunity. By merging XRPL’s efficiency with Ethereum’s developer ecosystem, Ripple is laying the groundwork for a more connected, functional, and developer-friendly blockchain future.