The Daily: XRP Ledger set to launch Ethereum-compatible sidechain, Stripe doubles down on crypto acquisitions, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Wednesday! Bitcoin held firm near all-time highs this morning, with the latest U.S. CPI data coming in lower than expected amid President Trump’s announcement of a finalized China tariff deal and fresh calls for the Fed to cut rates.

In today’s newsletter, XRP Ledger developers get set to launch an Ethereum-compatible sidechain, payment giant Stripe doubles down on its crypto project acquisition spree, Connecticut passes a law banning state crypto reserves, and more.

Meanwhile, Sygnum analysts warn Strategy’s rising holdings risk making bitcoin “inappropriate” for central bank reserves.

Plus, ICYMI, U.S. Solana ETFs could see approval in two to four months as the SEC requests updated filings.

Let’s get started.

XRP Ledger set to launch Ethereum-compatible sidechain

XRP Ledger, a blockchain associated with cross-border payments firm Ripple, plans to launch an Ethereum-compatible EVM sidechain this month to expand smart contract functionality.

Ripple CTO David Schwartz announced the sidechain timeline at the Apex 2025 event in Singapore.
The parallel-running blockchain combines XRPL’s low-cost transactions with Ethereum’s smart contract capabilities, leveraging the evmOS stack.
XRPL contributors Ripple and Peersyst are co-developing the sidechain, which is currently live on testnet.
The upcoming mainnet launch will follow further testing and validator partnerships.
While the XRP Ledger already supports native smart contracts, the network does not currently support the EVM.
Axelar will serve as the exclusive bridge for moving assets between XRPL and the sidechain, with wrapped XRP used as the native gas token.

Stripe doubles down on crypto project acquisition spree

Payments giant Stripe has agreed to acquire crypto wallet infrastructure firm Privy for an undisclosed sum as part of its broader push into the digital asset space.

The deal follows Stripe’s recent $1.1 billion acquisition of stablecoin platform Bridge and its launch of a stablecoin-based money management tool.
Privy, which claims to power over 75 million accounts, helps developers embed secure, user-friendly, and multi-chain crypto wallets into their apps while abstracting away some of the complexities, including seed phrases and gas accounting.
Privy will remain an independent product under Stripe, aiming to scale faster while continuing to serve platforms like OpenSea, Farcaster, and Hyperliquid.

Connecticut enacts law banning state crypto reserves

Connecticut has enacted a new law banning state and local governments from holding, investing in, or accepting crypto assets.

The law also specifically prohibits the creation of a strategic crypto reserve and mandates risk disclosures from crypto businesses that engage in money transmission.
The H.B. 7082 legislation, now Public Act No. 25-66, passed unanimously in both chambers of the Connecticut General Assembly without dissent.
Connecticut’s move sharply contrasts with states like New Hampshire and Arizona, which passed crypto reserve bills earlier this year, as well as President Trump’s U.S. bitcoin reserve.

Peter Thiel-backed crypto exchange Bullish files for US IPO

Bullish, the Peter Thiel-backed crypto exchange, has confidentially filed for a U.S. IPO, according to the Financial Times, citing two sources familiar with the matter.

The company submitted paperwork to the SEC in recent weeks, opting for a private filing to keep financials under wraps until it moves closer to going public, with Jefferies expected to serve as the lead underwriter for the offering.
The firm, which acquired crypto media outlet CoinDesk from Digital Currency Group in November 2023, previously attempted an IPO through a SPAC in 2021 but did not follow through on the deal.
Bullish’s IPO bid comes on the heels of Circle’s blockbuster debut, joining other crypto firms like Kraken and Gemini in planning to go public.

Sandeep Nailwal takes unilateral control of Polygon Foundation as CEO

Polygon co-founder Sandeep Nailwal has assumed unilateral control as CEO of the Polygon Foundation, marking a decisive power shift following the exit of all other co-founders from the Ethereum scaling project.

Nailwal is pivoting Polygon to prioritize the cross-chain aggregator AggLayer and an upgraded high-throughput PoS chain while sunsetting its zkEVM product due to its weak strategic position.
He framed the move as necessary to provide “clear direction and focused execution,” signaling a new founder-led era for Polygon.