XRPL's EVM Sidechain Hits $120M TVL in Record Week

Ripple’s XRP Ledger (XRPL) is undergoing a transformative phase, driven by institutional adoption, technological advancements, and strategic partnerships, according to David Schwartz, Ripple’s Chief Technology Officer. The resolution of Ripple’s five-year legal battle with the U.S. Securities and Exchange Commission (SEC) in early 2025 has catalyzed a surge in institutional interest, with the launch of spot XRP exchange-traded funds (ETFs) by firms like REX-Osprey and Grayscale Investments. This regulatory clarity has positioned XRP as a recognized asset class, enabling broader participation from financial institutions and accelerating network developmentRipple’s Record Achievements With XRP Events In 2025^[1].

A pivotal milestone in 2025 was the launch of the XRPL’s Ethereum Virtual Machine (EVM) sidechain, which integrated Ethereum’s smart contract capabilities with the XRPL’s speed and low transaction costs. Within a week of deployment, nearly 1,400 smart contracts were deployed on the mainnet, and total value locked (TVL) reached $120 millionRipple’s Record Achievements With XRP Events In 2025^[1]. This interoperability has attracted developers and liquidity providers, expanding the ledger’s utility in decentralized finance (DeFi) and decentralized applications (dApps).

Institutional partnerships further underscore XRPL’s growing influence. At the Apex 2025 summit, Ripple announced collaborations with entities like HSBC and Ondo Finance, including the tokenization of U.S. Treasuries (OUSG) and the launch of the first digital commercial paper (DCP) administered by Guggenheim Treasury Services on the XRPL. These initiatives highlight the ledger’s role in tokenizing real-world assets (RWAs) and providing institutional-grade financial infrastructureApex 2025: A Turning Point for Institutional Adoption …^[2]. Additionally, the introduction of five new stablecoins—USDC, XSGD, EURØP, RLUSD, and USDB—has enhanced liquidity and settlement options across global marketsApex 2025: A Turning Point for Institutional Adoption …^[2].

Schwartz has also prioritized infrastructure upgrades, personally funding a high-performance server to support the XRPL’s scalability. This investment aligns with the ledger’s record-breaking transaction volumes, including 70 million transactions in July 2025 alone, and the addition of over 1 million new accounts this yearXRP Ledger Adoption Climbs With 1 Million New Users …^[4]. The network’s growth is further bolstered by Ripple’s DeFi roadmap, which includes a native lending protocol (XLS-66), Multi-Purpose Tokens (MPTs) for complex financial instruments, and Zero-Knowledge Proofs (ZKPs) for confidential transactions. These tools aim to compete with Ethereum Virtual Machine (EVM) chains in the RWA tokenization marketRipple’s New DeFi Roadmap Renews Toolkit on XRPL^[3].

Analysts suggest that XRPL’s momentum could translate into sustained institutional adoption, particularly if upcoming features like permissioned decentralized exchanges (DEX) and advanced compliance tools gain traction. The ledger’s focus on programmability, coupled with its existing partnerships and academic collaborations—such as Ripple’s University Blockchain Research Initiative (UBRI)—positions it as a key player in the evolution of tokenized financial infrastructureApex 2025: A Turning Point for Institutional Adoption …^[2]. While challenges remain, including competition from EVM-compatible chains, XRPL’s unique blend of speed, compliance, and institutional partnerships highlights its potential to redefine cross-border payments and DeFi ecosystems.