Charles Hoskinson, the founder of Cardano, has revealed a new proposal that could transform XRP into a major player in decentralized finance. In a recent livestream, Hoskinson introduced plans to use Midnight, Cardano’s privacy-focused sidechain, as the primary DeFi gateway for XRP holders.
The plan involves creating a cross-chain bridge that would allow XRP tokens to move onto Midnight. As soon as these tokens become bridged, they could be utilized within the Cardano DeFi ecosystem to access yield farming, staking, lending, and liquidity pools.
This would allow the XRP holders to have new earning potential that is lacking within the XRP Ledger.
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In a section posted on Twitter by the Angry Crypto Show, Hoskinson said that such a merger would enable XRP users to enjoy much better returns in the DeFi on Cardano. The solution also incorporates transaction privacy, which is a major feature of Midnight, based on the extended UTXO model of Cardano and aimed at enabling confidential smart contracts.
Midnight has been under development since 2022, and by 2024, it had passed the stage of a testnet. With a complete mainnet launch still coming (and set to occur in 2025), Hoskinson has been keen to point out its work in sparking cross-chain functionalities, with XRP now viewed as a prospective key asset.
Expanded Ecosystem Support Aims to Attract the XRP Community
Beyond DeFi integration, Cardano is extending deeper support for XRP users. Hoskinson confirmed that XRP wallet holders will be included in Midnight’s Glacier Drop airdrop campaign, which will distribute NIGHT and DUST tokens to millions of eligible wallets across several chains.
Also, XRP will soon be supported on the Cardano Lace wallet, allowing users to exchange their XRP supply alongside Cardano-native assets. This will enhance convenience and even strengthen the bond between the two communities.
In addition, discussions regarding the possible integration of the future stablecoin, Ripple’s RLUSD, into the Cardano blockchain are on the agenda. Things are still under discussion, but such a step would expand the practical usefulness of both networks and extend their cooperation framework.
Hoskinson referred to these moves as one cohesive package that can help broaden the use of XRP. With proposed DeFi access via Midnight, XRP could make a giant stride toward becoming a decentralized finance powerhouse.
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