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- XRPL is gearing up for significant upgrades, enhancing programmability, compliance features, and lending capabilities while upholding its core values.
- Ripple CTO David Schwartz unveiled XRPL’s roadmap on X, introducing custom logic enhancements that expand functionality while preserving consensus integrity.
The XRP Ledger (XRPL) is undergoing a major shift towards enhanced programmability and Institutional Lending as outlined in a recent X post by Ripple CTO David Schwartz, where he revealed XRPL’s 2025 roadmap. This vision aims to strike a balance between flexibility, security, and efficiency, enabling developers to create custom functionalities without altering the core consensus process.
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 timeline for deployment includes an early devnet for Smart Escrows in Q1, a fully functional Smart Escrow devnet in the second quarter, the release of Smart Escrows for voting in Q3, and the launch of a Smart Contract devnet in Q4.
The announcement was well-received by the community, with Austin King, co-founder of Omni Network, calling it “the biggest upgrade to XRP Ledger since 2013” and highlighting its significance by noting that “most chains like Ethereum chose to do full programmability from the start.”
Key Considerations for XRPL Programmability
The roadmap prioritizes a permissionless approach that will allow developers to implement new functionalities without requiring approval from the Unique Node List (UNL). The main objectives for programmability include seamless compatibility with XRPL’s existing architecture, access to native features, and an easy learning curve for developers. Additionally, the plan ensures that programmability has minimal impact on transaction speed, security, and validator costs.
After evaluating various Virtual Machines (VMs), Ripple concluded that WebAssembly (WASM) is the best fit for XRPL programmability. WASM offers a balanced approach in terms of performance, flexibility, and integration with the ledger’s architecture. This ensures that developers can execute smart logic efficiently while maintaining XRPL’s speed, security, and cost-effectiveness.
Introducing Extensions on XRPL
Instead of implementing full smart contracts immediately, Ripple will introduce an incremental approach through a new concept called Extensions.
Extensions are small code modules that attach to XRPL’s existing features, such as escrows, tokens, and the decentralized exchange. They enhance functionality without requiring complete rewrites or independent smart contracts. This approach allows developers to introduce custom logic in a lightweight and efficient manner, reducing the risk of complexity while maintaining security.
One of the first use cases for Extensions is Smart Escrows, which will provide customizable escrow release conditions. Some real-world applications of Smart Escrows include notary escrows, where only a specific account can unlock the escrow, and credential-based escrows, which require the recipient to possess a specific credential or NFT for release.
XRPL’s Smart Features and Institutional DeFi Capabilities
Beyond escrows, Ripple envisions applying the Smart Feature model across the XRPL ecosystem, enabling innovations such as Smart AMMs for customizable trading curves, Smart Accounts with enhanced security features like firewalls and spending limits, and Smart Tokens for regulatory compliance checks.
Meanwhile, XRPL’s native Decentralized Exchange (DEX) continues to evolve, integrating greater automation and liquidity management through its Central Limit Order Book (CLOB), which has long supported efficient price discovery and deep liquidity for decentralized trading. With over 2.8 billion transactions processed, XRPL remains one of the most mature and resilient blockchains driving institutional DeFi adoption.
Currently, XRP is trading at $2.29, showing a 6.49% increase in the last 24 hours despite a 9.89% decline over the past week. While short-term fluctuations have impacted its price, the ongoing developments could act as a long-term catalyst for increased adoption and price appreciation.
