- Cardano is paving the way for XRP holders to access DeFi opportunities through its privacy-focused sidechain, Midnight, enabling yield farming, staking, and more.
- Cardano’s integration plans also include wallet support, airdrops, and potential adoption of Ripple’s RLUSD stablecoin to deepen cross-chain utility.
Midnight Rising: Cardano’s Secret Weapon for XRP DeFi Access
Cardano founder Charles Hoskinson is turning heads in the crypto space with a groundbreaking plan to merge the utility of Cardano and XRP. In a recent livestream, Hoskinson proposed using Midnight, Cardano’s privacy-centric sidechain, to serve as a DeFi gateway for XRP holders. This vision could transform how XRP is utilized—shifting it from a payments token to a full-fledged DeFi participant.
Bridging Two Powerhouses: Cardano and XRP
Hoskinson’s proposal revolves around bridging XRP tokens to Midnight, allowing access to ADA DeFi protocols, including staking, yield farming, and liquidity pools. With XRP traditionally lacking native smart contract capability, this partnership could be revolutionary, opening up high-yield opportunities that were previously out of reach for XRP holders.
What Is Midnight, and Why Does It Matter?
Launched as a testnet in 2024, Midnight leverages Cardano eUTXO model to offer confidential smart contracts while preserving blockchain transparency. Though originally built for privacy, it is now positioned as a launchpad for decentralized applications—making it a perfect fit for assets like XRP.
With mainnet debut expected in late 2025, Midnight’s ability to power cross-chain DeFi apps may become one of the biggest developments in blockchain interoperability.
DeFi, Airdrops, and More for XRP
Once XRP is bridged to Midnight, holders can enjoy improved returns through DeFi tools not available on the XRP Ledger. Hoskinson even stated his mission is to offer “much better yields” for XRP investors.
On top of that, XRP addresses will be included in Midnight’s upcoming Glacier Drop, which will distribute NIGHT and DUST tokens to over 37 million wallets. XRP is also set to be integrated into Lace, Cardano’s native wallet, giving users direct access to manage their assets across ecosystems.
RLUSD and a New DeFi Era
Hoskinson teased potential integration of Ripple’s USD-backed stablecoin, RLUSD, into the Cardano ecosystem—further underscoring the long-term commitment to XRP support. If successful, this “whole package” could redefine how XRP functions in the broader crypto world.
By building this bridge, Hoskinson isn’t just extending an olive branch—he’s offering XRP holders a powerful entry point into the world of DeFi.
