Ripple Announces XRPL EVM Sidechain to Enhance Blockchain Interoperability

UTC by Steve Muchoki · 3 min read
Ripple Announces XRPL EVM Sidechain to Enhance Blockchain Interoperability
Photo: Depositphotos

Ripple Labs intends to enable DeFi developers to build Ethereum-compatible applications through Wrapped XRP (eXRP) on the Axelar network.s

Leading blockchain payment company Ripple Labs has announced plans to roll out Ethereum Virtual Machine (EVM) compatibility to the XRP Ledger (XRPL) through a product dubbed XRPL EVM Sidechain.

According to the announcement, Ripple is responding to the request from the developers’ community amid the mainstream adoption of web3 products and digital assets.

Moreover, the XRPL EVM Sidechain will unlock more opportunities, especially in the real-world assets (RWA) tokenization that has attracted significant attention from institutional investors and retail traders.

Notably, the XRPL EVM Sidechain will exclusively launch on the Axelar network, a programmable web3 interoperability protocol that has already connected over 50 blockchains.

The blockchain payment company opted to work together with Axelar due to its tested security backed by its 75 validators. Additionally, the Axelar network employs key rotation policies to mitigate the chances of system attack.

The XRPL EVM Sidechain will tap on the Wrapped XRP (eXRP) for fee payment, whereby the Ripple team has been working closely with Peersyst to enhance blockchain interoperability.

“Axelar is a battle-tested, production-ready, and fully compatible bridge to bring wrapped XRP (eXRP) as a native currency to the XRPL EVM sidechain. The Peersyst engineering team is now working to migrate the main bridge to Axelar for the devnet,” Ferran Prat, Peersyst CEO, noted.

Ripple Expansion Bid

As Coinspeaker previously pointed out, Ripple has been in a bid to expand its products to global reach amid the mainstream adoption of digital assets. Already, Ripple has closed the acquisition deal of two major crypto custody firms Standard Custody and Metaco, to enhance mass adoption of digital assets.

The company has accelerated its development and acquisition bid amid the ongoing lawsuit filed by the United States Securities and Exchange Commission (SEC). Late last month, Ripple unveiled its roadmap for DeFi adoption on the XRPL network including an Automated Market Maker, Decentralized Identities (DiD), Oracles, Multi-Purpose Tokens (MPT), and XRPL-native lending protocol.

The company is also in the process of rolling out a US dollar-backed stablecoin on the XRPL and Ethereum networks. As a result, the launch of the XRPL EVM Sidechain will play a crucial role in the mainstream adoption of its upcoming stablecoins in addition to native web3 projects.

Impact on XRP Price Action

XRP price action has heavily been influenced by the ongoing Ripple vs SEC lawsuit, amid the ongoing crypto bullish recovery. The large-cap altcoin, with a fully diluted valuation of about $48.4 billion and a daily trading volume of around $1 billion, has dropped over 8 percent in the past week to trade around 48 cents on Wednesday.

However, the continued XRPL development by Ripple will significantly improve XRP’s liquidity, thus guaranteeing the ultimate bullish breakout in the coming quarters.

Cryptocurrency News, News, XRP News
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