During the Apex conference, David Schwartz the CTO at Ripple, mentioned that ETH EVM will be compatible with XRP Ledger. Furthermore the launch is expected during the Q2. This means that developers will be able to deploy application with the tools already familiar with ETH developers. For example, solidity, Truffle. Furthermore, WXRP will be the currency used in TX as the native token.
Performance Targets and Technical Architecture
The sidechain uses Proof-of-Authority consensus Mechanism to achieve performance and efficiency, with a goal of more than 1,000 transactions per second at a cost of less than $0.01. Furthermore it is said that Axelar network will be used as the bridge between the XRPL and EVM chain. This will in turn open XRPL to over 69 other blockchain ecosystems. An Informal Systems security audit in February 2025 revealed and fixed one critical issue, and the remaining results were categorized as low risk.
Developer Mind and Ecosystem Development
The use of testnet indicates high developer engagement as 87 new entities. Which have never been involved with XRP previously. This is a huge milestone for XRP ecosystem and increasing its use cases. Applications on the testnet are already being built by projects such as Strobe Finance and Verttex Protocol. This is a tactical move to bring developers within the entire EVM ecosystem and offer new development opportunities to the XRPL user base of more than six million wallets.
Strategic Implication on XRP Tokenomics
The sidechain opens up new opportunities for XRP in the form of wrapped XRP transaction fees. Which is critical as utility is directly related to activity levels on the EVM sidechain. This applications XRP tokenomics past cross-border settlements without sacrificing the payment optimization of the mainnet. The sidechain will enable new functions without modifying the XRPL core protocol. Furthermore, increasing the use cases of DeFi and smart contracts.
