Ripple CTO Hints at New XRP Ecosystem as XRPL Gets Historic Upgrade

• Ripple’s XRPL upgrade introduces native programmability, enabling developers to customize features like token transfers and escrows using Smart Features.
• Ripple’s EVM sidechain will allow Ethereum developers to deploy Solidity-based apps while maintaining XRP’s ecosystem with bridged XRP fees.

Since its launch in 2013, Ripple has introduced major updates to the XRP Ledger (XRPL). The upgrade, which focuses on native programmability, will enable developers to customize and enhance existing XRPL features.

According to the report , Ripple’s latest upgrade to the XRP Ledger focuses on enhancing its programmability, a feature that has been absent from the network since its inception. Initially, the XRPL focused on core financial use cases, offering functionalities such as decentralized exchanges (DEXs), escrows, and native tokens. While these features made it attractive to financial institutions, developers faced limitations when attempting to customize or extend the system.

However, the new update introduces “Smart Features,” a structure that allows developers to build on the existing XRPL functionalities. Unlike Ethereum, which launched with programmability as a core feature, the XRPL upgrade aims to add customization through small lines of code called “extensions.” These Smart Features will let developers tweak basic functionalities like token transfers, automated market makers (AMMs), and escrows to suit operational and regulatory needs.

The Introduction of Smart Escrows

The first feature introduced under the Smart Features framework is Smart Escrows. While traditional escrows on the XRPL are limited to basic conditions, such as unlocking funds after a certain time or with a passcode, Smart Escrows will offer advanced options.

For example, developers could implement conditions that require specific accounts to release funds or allow the recipient to release funds only after completing a specific action, like holding a particular NFT. This increased flexibility could open new use cases in real estate and finance sectors, where customized fund release conditions are essential.

The Smart Features framework is not limited to Smart Escrows. It will also extend to other features within the XRP Ledger. For instance, Smart AMMs, as per a report from our previous post, could offer customized trading strategies, and Smart Tokens could help enforce regulatory compliance. Additionally, the upgrade will include Smart Contracts, which will function similarly to Ethereum’s contracts but with an XRPL-specific design.

Smart Contracts on the XRP Ledger will operate through pseudo-accounts and execute transactions via a new ContractCall function. This approach will ensure compatibility with existing XRP Ledger features while enabling greater programmability and flexibility for developers.

EVM Sidechain: A New XRP Ecosystem

Alongside the launch of native programmability, RippleX is also working on an Ethereum Virtual Machine (EVM) sidechain. The EVM sidechain will allow Ethereum developers to deploy Solidity-based applications within the XRP ecosystem.

While some community members expressed concerns about whether this could overshadow XRP’s native features, Ripple CTO David Schwartz clarified that the EVM sidechain would operate within the XRP network. Additionally, fees on the sidechain will be paid using bridged XRP, ensuring it remains part of the broader XRP ecosystem.

However, Ripple’s move toward native programmability is part of a broader strategy to enhance the XRPL’s functionality, especially for institutional decentralized finance (DeFi). The rollout of Smart Escrows and Smart Contracts is expected to continue throughout 2025, with developer networks for Smart Escrows launching in Q1 and full test environments set for Q2.

It’s here – Ripple’s roadmap for institutional DeFi on the XRP Ledger in 2025. As roadmaps go, I (personally) think this one is pretty great – outlining a clear direction with use cases and features (available and to be proposed) of what Ripple will be focused on contributing to… https://t.co/L8WgovxiPJ

— David "JoelKatz" Schwartz (@JoelKatz) February 25, 2025

Ripple’s CTO, David Schwartz, emphasized that this upgrade is key to the company’s vision of expanding XRPL’s capabilities while maintaining its core strengths. The combination of native programmability and the EVM sidechain is expected to broaden the XRPL’s appeal and support a more diverse range of use cases.