XRPL Launches EVM-Compatible Sidechain for DeFi Access

TLDR

• XRPL’s sidechain enhances DeFi access for users and developers.
• XRP is used as gas on the new EVM-compatible sidechain.
• Integration with Axelar and Wormhole supports over 80 blockchains.

The XRPL ecosystem has launched an Ethereum Virtual Machine (EVM)-compatible sidechain, allowing users to access decentralized finance (DeFi) applications. The sidechain offers cross-chain support, significantly expanding the capabilities of the XRP Ledger. This development is a collaboration between Ripple and Peersyst, with integrations from Axelar and Wormhole for enhanced interoperability.

The launch provides a new environment to deploy EVM-based applications, bridging the gap between XRP Ledger and Ethereum’s smart contracts. XRP is now used as gas on this sidechain, increasing its utility for developers and users. The sidechain is expected to lead to significant increases in Total Value Locked (TVL) and ecosystem growth, although exact figures are unavailable as of June 30, 2025.

Partners and Technology Behind the Sidechain

Ripple, known for its role in the XRPL ecosystem, partnered with Peersyst to develop this EVM-compatible sidechain. Peersyst, a blockchain infrastructure firm, is recognized for building layer-1 solutions and fostering interoperability. David Schwartz, Ripple’s CTO and co-creator of the XRPL, commented on the project’s potential to extend the ecosystem’s capabilities.

The sidechain involves cross-chain bridges from Axelar and Wormhole, integrating with over 80 blockchains and 200 apps across 35 blockchains, respectively. These partnerships are expected to bolster institutional credibility and attract additional funding and liquidity incentives to the XRPL ecosystem.

Expected Impact on Assets and Liquidity

The native use of XRP as gas on the EVM sidechain is a notable shift, enhancing its role within the ecosystem. The sidechain’s EVM compatibility allows Ethereum (ETH) and ERC-20 tokens to be utilized across chains. This compatibility broadens exposure to a wide range of assets through Axelar and Wormhole networks, connecting with numerous blockchains.

The sidechain is positioned to bring more liquidity and increased developer activity, drawing parallels to past events where EVM compatibility led to substantial growth for ecosystems like Avalanche and Polygon. Initial liquidity inflows are anticipated, although precise figures are yet to be published.

Institutional and Regulatory Insight

No direct funding figures have been released, but the development has involved extensive building and testing in partnership with Peersyst. The integration of renowned interoperability protocols is expected to attract institutional investors and increase liquidity incentives.

Currently, no regulatory bodies like the SEC or CFTC have issued statements on this development. However, as the DeFi ecosystem grows on the XRPL EVM, ongoing monitoring of regulatory updates will be critical for stakeholders in the space.

Community and Developer Reactions

The launch has been met with optimism in community forums and developer circles, with many anticipating new dApps and integrations. The XRPL EVM blog expresses confidence in the foundation’s readiness for future development, encouraging more builders to explore the opportunities within the new sidechain environment.

GitHub discussions reveal high anticipation among developers eager to work on EVM/DeFi applications. Increased community engagement is expected as developers from existing XRPL and Ethereum communities collaborate on new DeFi solutions.

The launch enables experimentation with cross-chain dApps, contributing to liquidity flows between the XRP Ledger and the larger Ethereum ecosystem. For more information, refer to the XRPL EVM Sidechain Mainnet Launch Announcement.

To learn more about the team behind the technological advancements, visit the Peersyst Team Profile on x.com.