- Cardano founder Charles Hoskinson plans to make Midnight, Cardano’s privacy-focused sidechain, the DeFi layer for the XRP ecosystem, enabling XRP holders to access smart contract features like staking and lending.
- The collaboration includes upcoming support for XRP in the Lace Wallet, integration of Ripple’s RLUSD stablecoin, and a Midnight airdrop for eligible XRP holders.
Midnight to Power XRP’s DeFi Future
In a bold move to unify blockchain ecosystems, Cardano founder Charles Hoskinson has revealed plans to position Midnight, Cardano’s privacy-centric sidechain, as the DeFi layer for the XRP Ledger. During a recent AMA session, Hoskinson emphasized that the partnership would allow XRP holders to access advanced DeFi tools—without ever moving their tokens off-chain.
This strategic move seeks to solve one of XRP’s key limitations: the lack of native smart contract support. By connecting to Midnight, XRP users could soon access staking, lending, and liquidity pool opportunities while maintaining token custody and privacy.
Privacy, Smart Contracts, and Yield—All in One Layer
Midnight leverages zero-knowledge cryptography, enabling users to run confidential smart contracts. This ensures sensitive data remains hidden while interacting with DeFi apps. As part of this vision, Midnight could transform how XRP holders engage with DeFi—offering real yields with full privacy.
Hoskinson isn’t stopping at interoperability. He announced that Cardano’s Lace Wallet will soon support XRP, creating a seamless experience for users to manage their assets across ecosystems.
A Unified Blockchain Ecosystem: Midnight, RLUSD & More
Beyond smart contracts, Ripple’s RLUSD stablecoin could also be integrated into Cardano and Midnight, providing stable liquidity across DeFi platforms. Talks between Hoskinson and Ripple execs, including CTO David Schwartz and CEO Brad Garlinghouse, point to a genuine collaboration aimed at building a bridge between Cardano and the XRP Ledger.
This growing alliance focuses on synergy, not rivalry—combining Cardano’s smart contract power with XRP’s unmatched cross-border liquidity.
Midnight Airdrop Incentivizes Early Support
To kickstart adoption, Cardano launched two major airdrop campaigns: the Glacier Drop and the Midnight airdrop. XRP holders with at least $100 in XRP as of June 11, 2025, can claim from the 1.2 billion NIGHT tokens, which serve as governance fuel for the Midnight network.
Currently live on testnet, Midnight supports major chains like Ethereum, Solana, Avalanche, and now XRP. With a mainnet launch expected later this year, the DeFi potential for XRP is poised to explode.
