XRP News Today: Ripple Launches EVM-Compatible Sidechain on XRP Ledger Boosting DeFi Interoperability

Ripple, in collaboration with Peersyst, has launched an Ethereum Virtual Machine (EVM)-compatible sidechain on the XRP Ledger (XRPL). This new sidechain is designed to facilitate the deployment of EVM-based applications, enhancing the interoperability of decentralized finance (DeFi) across various blockchains. The sidechain leverages XRP as its native gas token, which is expected to bridge significant liquidity and increase participation from XRPL wallet holders.

David Schwartz, the Chief Technology Officer of Ripple, emphasized the sidechain's capacity for developers to deploy EVM-based applications effectively. He noted that the sidechain maintains the efficiency and reliability of the XRPL while extending its capabilities. This development is part of Ripple's broader strategy to enhance cross-chain DeFi markets and strengthen XRP's market role.

The sidechain has been connected to over 80 blockchains through Axelar, a cross-chain connectivity provider. This connection allows for the seamless integration of cross-chain real-world asset (RWA) and DeFi applications, expanding the reach and utility of the XRP Ledger. The bridge, which went live simultaneously with the sidechain's debut, provides developers with an immediate route to multiple blockchains and allows the sidechain to use wrapped XRP as its native gas token. This integration is managed through a user-friendly interface run by Squid, eliminating the need for users to juggle multiple wallets and bridges.

The launch of the EVM-compatible sidechain opens up new opportunities for developers and institutions. More than six million XRP Ledger wallets are now just one click away from DeFi applications that were previously exclusive to EVM chains. Several projects have already begun to leverage this new capability. Strobe is introducing a money market for lending and over-collateralized borrowing, while Securd is offering a lending model that finances leveraged DeFi positions. Vertex, known for its derivatives engine, plans to bring capital-efficient trading to the network. Additionally, Blockscout is providing a block explorer, and Goldsky is handling indexing and data feeds.

The sidechain's compatibility with EVM also provides a timely tool for institutions exploring tokenized dollars and other real-world assets. The XRP Ledger has long positioned itself as a platform for regulated finance, and its backers believe that EVM compatibility strengthens this position. David Schwartz highlighted that the sidechain allows teams to use familiar EVM tooling while drawing on XRP liquidity. Georgios Vlachos, who heads the Axelar Foundation, noted that banks and fintech firms are actively seeking reliable cross-chain rails, and this collaboration addresses that demand without altering the core XRP network.

Furthermore, Ripple has integrated Wormhole to enable the XRPL and its EVM sidechain to interact with over 35 blockchain networks, including Ethereum and Solana. This integration enhances the network's utility by allowing developers to execute Ethereum-based smart contracts on the XRP Ledger, further expanding its capabilities. The sidechain also supports stablecoins like RLUSD and asset tokenization, broadening the ledger's use cases beyond payments.

With the bridge live and early decentralized applications (dApps) moving in, the XRP Ledger steps into the multichain era. The network aims to differentiate itself through speed, low costs, and a growing list of compliant rails, positioning itself as a competitive player in an increasingly crowded field. This development underscores the XRP Ledger's commitment to innovation and its potential to become a leading platform for cross-chain DeFi and real-world asset tokenization.