XRP News Today: XRP Ledger to Integrate Ethereum Smart Contracts in 2025

The XRP Ledger is set to become compatible with Ethereum smart contracts through the launch of an Ethereum Virtual Machine-compatible sidechain in the second quarter of 2025. This development was confirmed by Ripple Chief Technology Officer David Schwartz at the Apex 2025 event. The sidechain, developed in collaboration with Peersyst Technology, aims to expand the utility of XRP beyond its traditional payment role by integrating Ethereum’s smart contract capabilities into the XRPL ecosystem.

The sidechain will provide full EVM compatibility, allowing developers to deploy applications using established Ethereum tools such as Solidity, MetaMask, and Truffle. Transactions on the network will utilize wrapped XRP (wXRP) as the native gas token. The Axelar network will function as the exclusive bridge for transferring assets, including the XRP required to create wXRP, between the XRPL mainnet and the new EVM sidechain. This architecture connects XRPL to over 69 other blockchain ecosystems supported by Axelar.

The sidechain operates on a Proof-of-Authority (PoA) consensus mechanism, selected for its performance and efficiency. Its targeted metrics include over 1,000 transactions per second and transaction costs below $0.01. To ensure network integrity, the sidechain’s code underwent a security audit by Informal Systems in February 2025. The audit identified and resolved one critical issue related to a Cosmos SDK module, with other findings being of low risk.

This initiative represents a strategic effort to attract developers from the larger EVM ecosystem and provide new avenues for applications on the XRP Ledger. By lowering the barrier to entry, the sidechain may foster a more diverse application environment for XRPL’s user base, which holds over six million wallets. The use of wXRP for transaction fees introduces a new demand mechanism for the XRP token, tying its utility directly to the activity level on the EVM sidechain. This could extend its tokenomics beyond its primary function in facilitating cross-border settlements.

Activity on the sidechain’s testnet suggests initial developer interest. Projects including Strobe Finance, Vertex Protocol, and Secured Labs are already building applications. Additionally, 87 new entities with no prior involvement in the XRP ecosystem are now contributing on the testnet, suggesting the potential for broad ecosystem growth upon the mainnet’s release. The project’s structure as a sidechain allows these new capabilities to be introduced without altering the XRPL mainnet’s core protocol, which remains optimized for payments. The mainnet launch of the XRPL EVM Sidechain is scheduled to proceed in the second quarter of 2025.