Ethereum-Compatible Sidechain for XRP Ledger Now Live on Testnet

Peersyst Technology has officially launched the testnet for its Ethereum Virtual Machine (EVM)-compatible sidechain on the XRP Ledger (XRPL), marking a major step toward expanding decentralized finance (DeFi) within the XRP ecosystem. Developed in collaboration with RippleX, blockchain interoperability platform Axelar Network, and blockchain science firm Common Prefix, the sidechain aims to combine XRPL’s speed and low fees with Ethereum’s smart contract capabilities.

The newly launched testnet uses XRP as its native token and is designed to unlock broader Web3 functionalities for XRPL users. Peersyst initially introduced the devnet version in October 2022, followed by an upgraded release in June 2023. Now with the testnet live, the company plans to onboard new partners and validators to further strengthen the network. “There’s still a lot more to announce, but we’re taking it step by step,” Peersyst stated.

Ripple’s Chief Technology Officer, David Schwartz, previously expressed strong support for the EVM sidechain, saying he hopes it becomes a competitive smart contract platform within the XRP ecosystem. His endorsement underscores Ripple’s strategic push to bridge the gap between XRPL and Ethereum-compatible platforms.

This development is seen as a significant milestone for XRP holders and developers, offering the potential for expanded use cases including DeFi applications, NFT integration, and cross-chain interoperability. With growing momentum and upcoming announcements, the XRPL sidechain is poised to reshape the landscape of smart contract deployment using XRP.

The initiative also reflects a broader trend of integrating Ethereum compatibility across various blockchain ecosystems to boost adoption, flexibility, and developer engagement.

Search interest in XRPL, XRP DeFi, and EVM-compatible blockchains is expected to rise as the project progresses through its testnet phase and beyond.