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Ripple to Commence DeFi Activities Following Smart Contracts Integration

Expanding into DeFi marks a significant step for Ripple, as it leverages smart contracts to offer new opportunities to its users.

XRP Ripple

Ripple, the blockchain firm behind the XRP Ledger (XRPL), is preparing to enter the decentralized finance (DeFi) space by incorporating smart contracts into its platform. This strategic move marks a significant expansion for Ripple as it looks to leverage the power of smart contracts to offer new opportunities to its users.

Smart contracts are self-executing programs that automatically enforce, control, or document the terms of an agreement without the need for intermediaries.

These versatile programs have a broad range of applications, including decentralized finance (DeFi) and supply chain management. They are key to the creation of decentralized applications (dApps) on leading blockchain platforms such as Ethereum, BNB Chain, Avalanche, and Solana.

Ripple Expands Into DeFi

Ripple recently announced on its blog that the integration of smart contracts is intended to open up numerous possibilities for users, developers, and entrepreneurs. The initiative aims to attract developers interested in utilizing the advanced capabilities of the XRPL.

With the introduction of smart contracts, Ripple users will gain access to a range of DeFi products. Ripple has expressed enthusiasm about collaborating with DeFi developers and has invited community feedback on the design aspects. The company also called on developers proficient in EVM languages to explore opportunities on the new sidechain.

Smart Contract Integration via Sidechain

Ripple revealed that the integration of smart contracts into the XRPL ecosystem will occur via a sidechain developed in partnership with the blockchain company Peersyst. This development is expected to make XRPL more appealing to developers, though the feature remains in the research phase and a specific launch date has not been provided.

The sidechain, designed with Ethereum-based smart contract developers in mind, offers a familiar environment for deploying dApps, enabling them to use Solidity—the programming language widely used for creating smart contracts on Ethereum.

Ripple added that the push to enhance XRPL’s programmability is anticipated to gain significant momentum in 2025 as the company works towards integrating smart contracts into the mainnet.

Jonathan Agozie

Jonathan Agozie is a prompt engineer committed to crafting clear and technically sound content on blockchain, cryptocurrency, and Web3 technologies.