Ripple (XRP) Labs Launches New Ethereum Virtual Machine (EVM)-Compatible Sidechain for the XRP Ledger (XRPL)

Ripple will launch a new Ethereum Virtual Machine (EVM)-compatible sidechain for the XRP Ledger (XRPL) by the end of Q2 2025.

The Ethereum Virtual Machine (EVM)-compatible sidechain for the XRP Ledger (XRPL) is set to launch by the end of Q2 2025, confirmed Ripple Chief Technology Officer (CTO) David Schwartz at Apex 2025 in Singapore.

Currently live on testnet, the sidechain is undergoing validator onboarding and technical checks before deploying to mainnet.

Developed in collaboration with Peersyst, the chain uses the evmOS software stack and will be connected to XRPL via a bridge provided by Axelar. As the native gas token on the new chain, Wrapped XRP (WXRP) will serve as a key component.

More Than 1,000 Smart Contracts Already Deployed on Testnet

Since its launch, the EVM sidechain has seen the deployment of more than 1,000 smart contracts on its testnet. This places it in direct competition with other EVM-compatible platforms that have already established large developer ecosystems.

For instance, BNB Chain currently supports more than 3,000 decentralized applications and is known for offering low transaction fees, usually remaining below $0.30. Meanwhile, Avalanche provides fast finality, executing transactions in less than two seconds, and supports customizable subnets tailored for institutional use.

Polygon, a Layer-2 scaling solution for Ethereum, boasts widespread adoption thanks to its minimal fees and compatibility with leading DeFi protocols like Aave and Uniswap.

In contrast to these existing platforms, Ripple's approach presents Ethereum compatibility within the XRP environment. By integrating Solidity-based smart contracts without abandoning its core network, Ripple is attempting to showcase XRPL as a hybrid that could attract developers seeking lower fees and faster execution while still being able to utilize familiar Ethereum tools and protocols.

The EVM sidechain is part of a broader expansion strategy by Ripple. In recent months, the XRP Ledger has seen the addition of EURØP, a MiCA-compliant euro stablecoin backed by Societe Generale, and USDB, a bond-backed stablecoin from Brazil's Braza Group.

In a separate development, Zeconomy issued digital commercial paper (DCP) on XRPL, marking the launch of the first institutional-grade financial product on the network.

However, despite the technological advancements, Ripple continues to face criticism over its perceived alignment with centralized financial systems.

Venture capitalist Gary Cardone recently slammed the project, accusing it of positioning itself as a tool for central banks. This follows recent speculation that the European Central Bank (ECB) may be considering using XRP Ledger for its digital euro framework.

Comparing XRP's growing institutional influence to a “financial virus,” Cardone claimed that the adoption of the token supports authoritarian financial controls. He criticized the project's vision, stating that it "aims to create a programmable, controllable financial system to be deployed on a global scale."