Ripple’s XRP Ledger Introduces Major 2.5.0 Upgrade to Compete with ETH and SOL

XRP Ledger’s latest upgrade adds smart contracts, batch payments, and performance tools to intensify competition with Ethereum and Solana.

The XRP Ledger is stepping up its game. With the release of version 2.5.0, XRPL is rolling out a powerful suite of upgrades designed to attract institutional users, dApp developers, and blockchain innovators. From batch transactions to smart contracts via Hooks, this update positions XRPL more directly in competition with established platforms like Ethereum and Solana.

Powerful New Tools for Enterprise and Developer Adoption

Among the most talked-about features is the batch transactions capability, enabling enterprises to make mass payments and token distributions efficiently. This feature reduces transaction overhead and is especially suited for high-volume payment processors and token issuance platforms.

New XRP Ledger Software Update 2.5.0 is out! This is how the new update will push the XRP Ledger forward ✅ –

Long awaited new amendments:

🔹Batch transactions.
🔹Token escrow (RLUSD, memes, treasuries etc).
🔹Premissioned DEX (P-Domain is in voting) so that institutions can… pic.twitter.com/kIGrLjvBhE

— Vet (@Vet_X0) June 24, 2025

Also introduced is token escrow, which supports secure, automated payouts ideal for vesting schedules and decentralized finance (DeFi) applications. Escrow functionality increases trust and control for managing digital assets like RLUSD, and strengthens XRPL’s infrastructure for complex financial operations.

• Batch transactions: process multiple payments simultaneously
• Token escrow: facilitates scheduled and conditional payouts
• Designed for enterprise-scale adoption

Permissioned DEX and Delegated Authority

Another major enhancement is the implementation of a permissioned decentralized exchange (DEX), offering greater control over asset listings and liquidity access. Accompanied by permission delegation, developers can now assign specific transaction rights to trusted third parties, creating new possibilities for automation and access control.

These governance enhancements help XRPL bridge the gap between fully decentralized and permissioned ecosystems, giving businesses the flexibility they often require.

Smart Contracts Come to XRPL via Hooks

A major leap in XRPL’s feature set is the formal inclusion of Hooks, a system allowing the creation of smart contracts and decentralized applications (dApps) natively on the ledger. This functionality makes XRPL more competitive with Ethereum’s smart contract environment, but with the advantage of faster speeds and lower costs.

According to RippleX engineer Mayukha Vadari, the addition of Hooks “will help XRPL compete more directly with Ethereum and Solana,” a goal that seems increasingly realistic with this update.

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Enhanced Interoperability and Performance

The update also boosts interoperability, making it easier for XRPL to interact with other blockchain networks. This is especially valuable for enterprises pursuing cross chain applications. Alongside these feature upgrades, the 2.5.0 release squashes several bugs affecting NFT trustlines and RPC responses, contributing to overall network stability and speed.

Network data supports this momentum:

• Daily XRPL addresses surged 7x
• Whale wallets reached an all time high
• XRP token saw a 6 percent price increase, trading near $2.17

CoinLaw’s Takeaway

The XRPL 2.5.0 update is a strategic evolution rather than just a technical patch. By aligning with industry demands for scalability, smart contracts, and interoperability, XRP Ledger is carving a clearer path in the competitive blockchain space. The update shores up XRPL’s reputation as a fast, low cost alternative to Ethereum, while tackling some of the very limitations that have kept it from wider DeFi and enterprise adoption.