XRP Expands into Cosmos with IBC
The XRP Ledger (XRPL) is taking a significant step forward in blockchain interoperability by integrating with the Inter-Blockchain Communication (IBC) protocol. This move, led by Peersyst Technology, establishes an EVM-compatible sidechain that connects XRPL to Cosmos, unlocking new possibilities for XRP within decentralized finance (DeFi) and beyond.
With this integration, XRP gains native access to IBC, the Cosmos SDK, and enhanced programmability through the Ethereum Virtual Machine (EVM). This development aims to expand XRP's use cases while leveraging Cosmos' established infrastructure for cross-chain transactions.
The XRPL EVM Sidechain: Bridging XRP to DeFi
One of the key components of this integration is the XRPL EVM sidechain, a network designed to enable smart contract functionality for XRP while maintaining compatibility with Ethereum-based applications.
The sidechain delivers three primary benefits:
Programmability: By incorporating EVM compatibility, developers can build and deploy Ethereum-based smart contracts using XRP as the primary asset.
Scalability: The XRPL EVM sidechain functions as a Layer 2 (L2) solution, enabling higher transaction throughput while maintaining security and efficiency.
Interoperability: By adopting IBC and the Cosmos SDK, the sidechain allows XRP to interact seamlessly with other blockchain ecosystems, increasing liquidity and expanding its reach.
This initiative addresses one of XRPL’s long-standing limitations—interoperability with smart contract-based ecosystems—while ensuring that XRP remains central to transactions within its network.
Why IBC and Cosmos?
IBC has become a critical standard for cross-chain communication, enabling assets and data to move freely between independent blockchain networks. Unlike traditional bridge solutions that rely on wrapped tokens, IBC provides a trust-minimized framework for secure interoperability.
By integrating IBC, XRPL benefits from:
Seamless connectivity with Cosmos-based chains and other IBC-enabled networks.
Direct access to Cosmos' liquidity, DeFi applications, and staking models.
A robust, scalable framework that supports future cross-chain expansion.
This move reflects a growing trend of established blockchain networks adopting Cosmos SDK and IBC to enhance their cross-chain capabilities.
Devnet Testing and Next Steps
The XRPL EVM sidechain is currently in final-stage Devnet testing, with:
1 million transactions completed
60,000 addresses registered
1,000 tokens and 10,000 smart contracts deployed
The project is expected to move into Testnet soon, marking the next step toward mainnet deployment. The integration is being developed in collaboration with RippleX, Axelar, and Peersyst Technology, ensuring a secure and efficient rollout.
Closing Thoughts
As the blockchain industry moves toward greater connectivity, XRP’s integration with IBC signals a broader shift toward modular, interoperable networks, where assets and applications are no longer siloed but instead move fluidly across multiple ecosystems.
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