- Cardano founder Charles Hoskinson has proposed integrating XRP into Cardano’s Midnight sidechain to offer XRP holders significantly better DeFi yields through activities like staking and yield farming.
- This initiative, along with the upcoming Glacier Drop and potential wallet and stablecoin integrations, signals a broader effort to enhance XRP’s utility across the Cardano ecosystem.,
Hoskinson Wants Cardano to Power XRP DeFi
In a surprising yet strategic proposal, Cardano founder Charles Hoskinson has expressed his desire for Cardano’s privacy sidechain, Midnight, to serve as the DeFi layer for the XRP ecosystem. Speaking during a live broadcast, Hoskinson said he envisions a future where XRP holders can remain part of the XRP community while accessing “much better yields” by bridging their tokens to Midnight.
The statement, which was spotlighted by the Angry Crypto Show, positions Midnight as a potential game-changer. Launched as a privacy-focused sidechain by Cardano’s research arm IOG, Midnight enables the deployment of private smart contracts through its extended UTXO model, without altering Cardano’s base layer.
What This Means for XRP Holders
With Midnight’s mainnet expected later this year, XRP holders may soon be able to bridge their assets to Cardano’s DeFi ecosystem. This would unlock opportunities such as yield farming, staking, and liquidity provision, enabling users to earn higher passive income on their XRP holdings.
This isn’t Hoskinson’s first outreach to XRP holders. Earlier this year, he revealed that XRP addresses would be included in the upcoming Glacier Drop, distributing NIGHT and DUST tokens to over 37 million wallets, including those on the XRP Ledger.
Ripple’s Ecosystem Gets a Boost from Cardano
Hoskinson’s push for Midnight as a DeFi hub for XRP comes shortly after crypto exchange Uphold announced a partnership with Flare Network, offering DeFi yield opportunities to XRP holders. However, Cardano’s entry, especially with its advanced sidechain architecture, could give XRP a more robust DeFi foundation.
Additionally, Cardano is reportedly working on integrating XRP into its non-custodial wallet, Lace, and is in talks to onboard Ripple’s RLUSD stablecoin. According to Hoskinson, all these developments form a “whole package” tailored for XRP holders.
A New Era for XRP Utility?
With Midnight’s DeFi vision and strategic incentives like the Glacier Drop, Cardano is extending a serious invitation to the XRP community. If realized, this collaboration could reshape how XRP functions in decentralized finance, unlocking new earning opportunities and utility across blockchains.
