XRP Ledger Upgrades Aim to Boost Institutional Adoption, XRP Outperforms Bitcoin
Investors tracking XRP have fresh reasons for optimism as Ripple unveils a series of upgrades designed to enhance the XRP Ledger’s appeal to institutions. These enhancements focus on regulatory compliance, lending, and expanding the network’s capabilities.
XRP has responded positively to the news, rising 2.2% in the past 24 hours, outperforming bitcoin’s 1.1% decline amid Tuesday’s market turbulence.
Key Enhancements to XRP Ledger
In a Tuesday update, Ripple announced that the XRP Ledger will introduce new compliance tools and expanded lending functionalities to help institutions meet regulatory requirements while unlocking new financial opportunities.
The upcoming features include:
- Flexible Tokens – Digital assets representing anything from bonds to collectibles, enhanced with extra metadata for broader utility.
- Lending System – A decentralized lending mechanism allowing businesses to borrow and lend directly on the XRP Ledger without relying on banks.
- EVM Sidechain – A dedicated Ethereum Virtual Machine (EVM) sidechain to improve interoperability and attract developers from Ethereum’s ecosystem.
- Permissioned Settings – Customizable access controls to enhance security and regulatory compliance for institutional use.
These additions build on existing features such as clawback, which enables issuers to reclaim tokens linked to illicit activity, and decentralized identity applications for improved security.
EVM Sidechain to Drive Developer Adoption
One of the most anticipated upgrades is the XRPL EVM sidechain, set for mainnet launch in Q2 2025. This integration aims to bridge the gap between Ethereum’s developer community and the XRP Ledger by supporting smart contract protocols previously unavailable on XRPL.
The new sidechain will use XRP as its native token for transactions, covering all financial applications built on this expanded ecosystem.
By leveraging Ethereum’s decentralized computing engine, the XRP Ledger moves closer to becoming a more versatile, institution-friendly blockchain while maintaining its core principles of speed and efficiency.
