XRP News Today: Ripple to Launch Ethereum-Compatible Sidechain by Q2 2025

Ripple is set to expand the capabilities of the XRP Ledger with the launch of an Ethereum Virtual Machine (EVM)-compatible sidechain by the second quarter of 2025. This significant development was announced at the APEX 2025 conference by Ripple's Chief Technology Officer, David Schwartz, and Jaazi Cooper, director of product management at Ripple.

The EVM-compatible sidechain is designed to enable the XRP Ledger to run Ethereum-based decentralized applications (dApps) and smart contracts seamlessly. This compatibility is expected to enhance the XRPL's capabilities in the realms of decentralized finance (DeFi), non-fungible tokens (NFTs), and other dApps. The sidechain, built on evmOS and powered by Ripple and Peersyst Technologies, has been undergoing testing and is nearing completion before its full rollout.

Ask Aime: Will XRP's EVM-compatible sidechain enhance DeFi and NFT possibilities?

The testnet for the XRPL EVM sidechain went live earlier this year and has shown rapid growth. According to Peersyst Technologies, 87 new entities with no prior involvement in XRP have started contributing to the ecosystem, including infrastructure, apps, and demand generation. This influx of new participants is anticipated to significantly expand the XRP ecosystem once the mainnet goes live, potentially marking one of the largest onboarding events in XRP's history.

The EVM sidechain will offer users the opportunity to generate yield through various DeFi applications, such as liquidity pools, and engage in smart contract interactions. This development is part of Ripple's broader strategy to integrate Ethereum's capabilities into the XRP Ledger, thereby attracting a wider range of developers and users to the platform.

The launch of the EVM-compatible sidechain is a strategic move by Ripple to leverage the strengths of both the XRP Ledger and Ethereum, creating a more versatile and robust blockchain ecosystem. This initiative is expected to drive innovation and adoption within the XRP community, positioning the XRP Ledger as a competitive player in the rapidly evolving blockchain landscape.

This development is significant as it bridges the gap between the XRP Ledger and Ethereum, enabling seamless support for Ethereum-based smart contracts and decentralized applications. This positions the XRP Ledger to attract projects and developers from Ethereum’s vast ecosystem, broadening its developer base and utility. The EVM compatibility allows developers to build apps like DeFi projects and NFT platforms using Solidity, Ethereum’s most popular programming language, making the XRP Ledger much more useful.

As more Layer 1 blockchains compete, Ripple’s move to support Ethereum-based tools, while keeping XRP Ledger’s fast speed and low costs, could help it stand out in the growing blockchain world. With the full launch expected by the end of Q2, the crypto community is watching closely. If successful, this sidechain could bring in a new era for XRP, one that extends far beyond remittances.