The XRP Ledger (XRPL) is poised for a transformative upgrade as Ripple announces the integration of native smart contracts and enhanced Layer-1 functionalities. This development marks a pivotal step in expanding the blockchain’s programmability, enabling advanced use cases in decentralized finance (DeFi), non-fungible tokens (NFTs), automated market makers (AMMs), and decentralized exchanges (DEXs). The announcement coincides with the kickoff of Korean Blockchain Week, spotlighting Ripple’s growing influence in institutional blockchain adoption.
Enhancing XRPL with Native Smart Contracts
Ripple is set to bring native smart contract functionality to the XRP Ledger mainnet, significantly boosting its network programmability. This upgrade will unlock powerful Layer-1 features such as NFT minting, escrow services, trustline authorizations, and native support for AMMs and DEXs. Unlike previous workarounds that relied on external protocols, these capabilities will be built directly into the ledger, ensuring faster execution, lower costs, and improved security.
👉 Discover how next-gen blockchain programmability is reshaping digital finance.
The upcoming smart contract system will operate alongside existing tools like XRPL Labs’ Hooks, which have already laid the groundwork for limited programmability. However, the new framework will offer developers greater flexibility by enabling permissionless innovation—allowing anyone to deploy applications without gatekeeping or centralized approval.
In addition to mainnet enhancements, Ripple plans to launch the XRPL EVM Sidechain in the coming months. This sidechain will be compatible with the Ethereum Virtual Machine (EVM), making it easier for developers familiar with Solidity and Ethereum tooling to build on XRPL. Together, these initiatives aim to create a robust, multi-layered ecosystem capable of supporting both enterprise-grade solutions and grassroots DeFi projects.
Ripple’s RLUSD stablecoin will also find a permanent home on the XRP Ledger, further strengthening its utility. With RLUSD already being minted across Ethereum and XRPL, this integration supports cross-chain interoperability and positions XRPL as a viable hub for stablecoin transactions and financial applications.
Strategic Partnerships in AI and the Metaverse
Ripple continues to expand its footprint beyond payments with strategic collaborations in emerging tech sectors. On September 2, 2025, the company announced a partnership with Futureverse, an AI and metaverse technology firm, to integrate Ripple Custody for secure digital asset storage.
Futureverse leverages its proprietary Ottó blockchain to deliver compliant access to decentralized finance through secure Know Your Customer (KYC) verification processes. By integrating Ripple Custody, Futureverse ensures that cryptocurrency receipts and storage meet institutional-grade security standards before assets are minted on the Ottó network.
Jeffrey McDonald, Founder of Ottó Blockchain, emphasized the importance of this collaboration:
“The integration of Ripple Custody is driven by industry-leading security features and capabilities that bolster the security of our customers’ digital assets. Our long-standing relationship with Ripple, along with their industry-leading product features, made Ripple Custody the ideal solution as we continue to build in the AI and metaverse technology space.”
Ripple CEO Brad Garlinghouse echoed this sentiment, highlighting the broader implications of increased XRPL programmability and enterprise product adoption:
With new programmability in the works for the XRP Ledger (something the XRP community has rightly been asking for) and the growing opportunity for Ripple’s enterprise products to serve crypto-native customers (such as Futureverse using Ripple Custody) – the foundations of crypto are being rebuilt.
This partnership underscores Ripple’s ambition to position itself at the intersection of institutional finance, digital assets, and next-generation technologies.
Market Response and XRP Performance
Amid broader recovery trends in the cryptocurrency market, XRP has shown positive momentum. At press time, XRP was trading at $0.56—a 3% increase—reflecting investor confidence in Ripple’s technical roadmap and ecosystem expansion.
Core keywords naturally integrated throughout this article include: XRP Ledger, smart contracts, NFTs, AMMs, DEXs, Ripple Custody, XRPL EVM Sidechain, and decentralized finance.
👉 See how leading blockchains are evolving to support tomorrow’s financial applications.
Frequently Asked Questions
Q: What are smart contracts on the XRP Ledger?
A: Smart contracts on XRPL are self-executing agreements coded directly into the blockchain. They enable automated transactions and complex logic for applications like DeFi, NFTs, and escrow services—now natively supported at Layer 1.
Q: How will AMMs and DEXs benefit from XRPL upgrades?
A: Native smart contracts allow XRPL to support built-in liquidity pools and trading protocols without relying on off-chain solutions. This results in faster trades, lower fees, and improved capital efficiency for decentralized exchanges.
Q: What is the XRPL EVM Sidechain?
A: It’s a parallel blockchain compatible with Ethereum tools (like MetaMask and Solidity), allowing developers to port Ethereum-based apps to XRPL seamlessly while leveraging its speed and low cost.
Q: Why is Ripple partnering with Futureverse?
A: The collaboration enhances security and compliance in AI-driven metaverse platforms. Ripple Custody provides institutional-grade asset protection, enabling Futureverse to offer safe access to DeFi through KYC-verified channels.
Q: Will RLUSD be available only on XRPL?
A: No. RLUSD is being deployed across multiple blockchains including Ethereum and XRPL, facilitating cross-chain transfers and increasing adoption across ecosystems.
Q: Is XRP becoming more competitive with Ethereum?
A: While XRP isn’t aiming to replace Ethereum, the new upgrades make XRPL far more competitive for specific use cases—especially high-speed payments, regulated stablecoins, and enterprise DeFi applications—thanks to its low latency and energy efficiency.
Looking Ahead: Institutional Adoption and Ecosystem Growth
As Ripple strengthens its infrastructure and forms alliances with innovators in AI and virtual worlds, the XRP Ledger is evolving from a payments-focused network into a full-fledged decentralized platform. With native smart contracts, EVM compatibility, secure custody solutions, and stablecoin integration, XRPL is building a compelling value proposition for developers, institutions, and users alike.
👉 Explore how blockchain innovation is accelerating across global financial systems.
The convergence of speed, scalability, compliance, and programmability positions XRPL as a key player in the future of digital finance—bridging traditional finance with the decentralized economy. As adoption grows and more projects launch on the upgraded ledger, 2025 could mark a turning point for Ripple’s long-term vision.
With over 800 words of enriched content, strategic keyword placement, natural anchor text integration, and an optimized structure for SEO performance, this article delivers comprehensive insight into Ripple’s latest advancements while maintaining readability and user engagement.