XRP Ledger Integrates Ethereum Smart Contracts: What This Means for Crypto and DeFi
The XRP Ledger (XRPL) has officially launched its highly anticipated Ethereum Virtual Machine (EVM) sidechain on mainnet, marking a significant milestone for blockchain interoperability and decentralized finance (DeFi)1. Developed in partnership with Peersyst, this new sidechain brings full Ethereum compatibility to the XRPL ecosystem, allowing developers to deploy Ethereum-based smart contracts and decentralized applications (dApps) using familiar tools like Solidity and MetaMask 2.
Why Is This Important?
• Seamless Cross-Chain DeFi:
The XRPL EVM sidechain enables XRP to interact directly with Ethereum dApps, opening the door for new DeFi products, tokenization, and payment solutions that leverage both networks’ strengths.
• Developer-Friendly:
By supporting Ethereum’s development environment, the sidechain lowers the barrier for developers to build or port existing Ethereum dApps to XRPL, tapping into its deep liquidity and fast, low-cost transactions.
• Native XRP as Gas:
Unlike Ethereum, where ETH is used for transaction fees, the XRPL EVM sidechain uses XRP as its native gas token, increasing utility for XRP holders and simplifying cross-chain asset movement.
How Does It Work?
The sidechain is connected to the main XRPL via the Axelar bridge, which links over 80 blockchains and ensures a 1:1 relationship for XRP bridged between the networks. This setup preserves XRP’s value and allows users to move assets seamlessly. The integration with Squid as the official cross-chain transfer UI further enhances the user experience, while upcoming support for the Wormhole protocol will expand interoperability to over 35 blockchain ecosystems.
Performance and Cost Advantages
The XRPL EVM sidechain is designed for speed and efficiency, offering faster block times and lower transaction fees than Ethereum. This makes it particularly attractive for high-volume dApps and DeFi protocols that require quick settlement and minimal costs.
What’s Next?
With the XRPL EVM sidechain now live, developers can start building and deploying EVM-compatible applications that benefit from both the reliability of the XRP Ledger and the programmability of Ethereum. This launch is expected to accelerate innovation in DeFi, payments, and tokenization, positioning XRPL as a major player in the multichain future of blockchain.
