The sidechain, launched by a blockchain network associated with cross-border payment company Ripple, allows developers to build, port, and deploy cross-chain Ethereum-compatible applications within the XRP ecosystem. Officials stated that this parallel blockchain combines the low-cost transaction advantages of the XRP Ledger with Ethereum smart contract functionality, opening up channels for new types of decentralized applications such as lending, asset tokenization, and payments on an infrastructure that optimizes speed, security, and scalability.

It is reported that the XRPL EVM sidechain was developed in collaboration by Ripple, Peersyst, and Axelar, and adopts Evmos' software architecture. Although the XRP Ledger previously supported limited native smart contract programming, it has not been compatible with EVM. However, the Flare network, which is integrated with the XRP Ledger, has independently provided smart contract functionality through the EVM-compatible layer. The sidechain connects to the XRPL mainnet via Axelar as the exclusive cross-chain bridge for transferring assets such as wrapped XRP, which will serve as the sidechain's native fuel token. [BlockBeats]