XRP Evolves Beyond Finance: Now integrated with Cosmos and building EVM sidechains

XRP is entering the multichain race for crypto interoperability.

As the crypto landscape evolves towards greater interoperability, aiming for mass adoption seems like a distant goal without different blockchains learning to communicate. While behemoths like Chainlink and Polkadot are at the forefront of the interoperability revolution, another project is emerging from the shadows—and it might be closer than you think.

Yes, we're talking about XRP. Despite being largely known for its speed and financial focus, it's quietly making moves to become a major player in the multichain ecosystem.

But first, let's take a step back. Why is interoperability such a hot topic? Well, different blockchains excel in specific domains. For instance, Solana is blazing fast, but Ethereum has the DeFi depth. To truly unlock the potential of crypto, these strengths need to converge.

Enter interoperability protocols like Chainlink’s oracles providing cross-chain data and Polkadot’s parachains enabling different chains to operate in parallel. These protocols are laying the groundwork for a future where value and liquidity can flow seamlessly between blockchains.

Now, how does XRP fit into this picture? It's already making waves in the real-world financial sphere. Having integrated with over 200 financial institutions through RippleNet, with transaction speeds of 3-5 seconds and costs of a fraction of a cent, it's no surprise that major banks such as Santander, Bank of America, and American Express are part of the fold.

Plus, with projects like Colle AI developing cross-blockchain NFT functionality on the XRP Ledger, the possibilities are vast.

But wait, there's more. In a move that's sure to have implications for DeFi and NFT projects, XRP is now rolling out an EVM sidechain to enable compatibility with Ethereum smart contracts.

This initiative will allow for seamless integration with DeFi protocols and NFT marketplaces built on the EVM, opening up a whole new world of opportunities for XRP users.

However, despite its solid infrastructure and regulatory progress, XRP faces key hurdles. With over 50% of XRP’s token supply being held by Ripple Labs, concerns over centralization arise. Its presence in DeFi is still in its early stages, and compared to Polkadot or Cosmos, XRP’s smart contract functionality is lacking.

So, can XRP really pull ahead in the interoperability race? It has the potential, but only if it leverages its unique strengths and addresses the challenges head-on.

While others are building the technology for blockchain communication, XRP is already deeply entrenched in real-world finance. By continuing to strengthen its payment rails and building interoperability on top of them, XRP has the chance to become the ultimate value bridge, connecting not just banks, but the entire crypto ecosystem.

Only time will tell if XRP can truly rise to the challenge and claim the leading role in this new era of interoperability.