The company announced Monday that it has begun testing the first phase of its Ethereum Virtual Machine (EVM)-compatible sidingchain. The sidechain is based on the Ripple test network and is being developed in conjunction with Peersyst. XRP Ledger's main network-based sidechain is scheduled to launch in the second quarter of 2023.

XRP Ledger supports its own version of smart contracts, but most developers create smart contracts for Ethereum and other EVM blockchains with which the Ripple network is not yet compatible.

At the same time, Ripple notes that it decided not to directly add support for Ethereum smart contracts to the main XRP Casino network, as this could have negatively affected its efficiency, scalability and security. Instead, the company opted to create a separate sidechain and bridge to connect it to the core network.