Ripple is rolling out native programmability, one of the most significant updates to the XRP Ledger (XRPL) since its inception in 2013.
For context, native programmability will allow developers to create custom features while maintaining the XRPL’s efficiency and security. This development, spearheaded by RippleX engineers, looks to expand the blockchain’s utility for both institutions and developers.
XRPL to Welcome Native Programmability
According to the proposal from Senior RippleX Software Engineer Mayukha Vadari, unlike Ethereum, which sprang up with programmability from the start, the XRPL initially focused on modules for major financial use cases.
Notably, the network has built-in tools like a decentralized exchange (DEX), escrows, and native tokens, making it attractive to financial institutions. However, developers face challenges when trying to customize these features.
The latest upgrade will introduce a new approach called “Smart Features.” Essentially, instead of replacing XRPL’s existing functions, these Smart Features allow developers to enhance them with their own custom logic using “extension,” a small line of code.
What does this mean? Institutions will be able to tweak and tailor XRPL’s capabilities—such as escrows, automated market makers (AMMs), and token transfers—to meet regulatory and operational needs.
Smart Escrows
According to the report, the first feature to roll out under this new framework is Smart Escrows. Currently, escrows on the XRPL can only be released after a set time or by using a passcode. Now, with the upgrade, developers can create more advanced conditions for unlocking funds.
For instance, Smart Escrows could allow only specific accounts to release funds, require the recipient to hold a certain NFT, or ensure that a previous escrow has been completed before another one is unlocked. These capabilities can bring new possibilities to industries like real estate and financial services.
Future Smart Features and Smart Contracts
Besides escrows, the same concept can apply to other XRPL features. Specifically, Smart AMMs could allow for custom trading strategies, Smart Accounts could incorporate advanced security protections, and Smart Tokens could enforce regulatory compliance.
For use cases requiring full flexibility, XRPL will also introduce Smart Contracts. Interestingly, these contracts will function similarly to Ethereum’s but with an XRPL twist.
The report confirmed that they will operate on pseudo-accounts and execute transactions using a new ContractCall function. Notably, the setup will ensure compatibility with existing XRPL functions and at the same time offer greater programmability.
Austin King, co-founder of Omni Network, commented on the latest development, arguing that it represents the biggest upgrade the XRP Ledger has witnessed since its inception in 2013.
The biggest upgrade to XRP Ledger since 2013 was just announced: Native Programmability.
Here’s an overview of the key things you need to know, and how it will lay the foundation for this new era of $XRP.
Let’s dive in 🧵 https://t.co/zCyOEXLndH
— Austin King (@0xASK) February 25, 2025
The EVM Sidechain, Another XRP Ecosystem
Alongside native programmability, RippleX insists the forthcoming EVM sidechain will remain an important part of Ripple’s roadmap. For the uninitiated, the sidechain allows Ethereum developers to deploy Solidity-based applications.
Speaking on the development, Ripple CTO David Schwartz described the upgrade as part of Ripple’s larger plan for institutional DeFi on the XRPL in 2025. He noted that the roadmap sets out a vision for expanding XRPL’s capabilities while maintaining its strengths.
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
The programmability roadmap includes an early developer network for Smart Escrows in Q1, a full-featured Smart Escrow test environment in Q2, and a community vote to enable Smart Escrows in Q3. A Smart Contracts developer network is set to follow in Q4.
However, some community members questioned whether the EVM sidechain could undermine XRP. In response, Schwartz clarified that the sidechain still operates within the XRP ecosystem. According to him, fees on the sidechain will be paid using bridged XRP. “It will be another XRP ecosystem,” the Ripple CTO revealed.
