XRP Ledger to Launch Ethereum-Compatible EVM Sidechain in Q2, Expanding DeFi and Developer Access
The XRP Ledger (XRPL) is set to launch its Ethereum Virtual Machine (EVM)-compatible sidechain in the second quarter of 2025, according to an announcement at the APEX 2025 conference by Ripple executives. This new product aims to bridge XRP Ledger with the Ethereum ecosystem, enabling support for Ethereum-based decentralized applications (dApps) and smart contracts. The XRPL EVM sidechain testnet has already shown significant momentum, with 87 new entities—many of which previously had no involvement with XRP—now contributing infrastructure, applications, and ecosystem growth. Backed by Peersyst Technologies, the sidechain is expected to drive potentially the largest onboarding event in XRP’s history. EVM compatibility will also give users access to decentralized finance (DeFi) opportunities like liquidity pools and yield generation via smart contracts. Leading Ripple figures Jaazi Cooper and David Schwartz have positioned the move as a major step in expanding XRP’s use cases and integration with broader DeFi innovations. The development is likely to enhance liquidity and attract developers to the XRP ecosystem, reflecting a strategic effort to gain relevance in the competitive layer 1 blockchain space.
Bullish
This development is considered bullish for XRP and the broader ecosystem because it directly enhances interoperability with Ethereum, the largest smart contract platform. Historically, announcements around cross-chain integration, especially EVM compatibility (as seen with projects like Avalanche, Binance Smart Chain, and Polygon), have led to increased developer interest, liquidity inflows, and higher on-chain activity for the integrating blockchain. The onboarding of DeFi applications and new developers can drive demand for XRP, improve utility, and expand its role beyond payments into decentralized finance. In the short term, traders may speculate on higher usage and collaborations, while in the long term, the project could capture a larger share of the DeFi and Web3 market. This aligns with positive price reactions seen in similar interoperability expansions across other chains.