Hoskinson noted that Cardano and Bitcoin share the UTXO model which enables contract interoperability.
Cardano founder Charles Hoskinson has outlined new opportunities for growth in the decentralized finance (DeFi) sector. Speaking at Token2049 Singapore, he emphasized the hidden potential of Bitcoin and XRP DeFi. He acknowledged setbacks in Cardano’s own DeFi performance but stressed long-term strengths and untapped markets.
Cardano founder Charles Hoskinson referred to XRP as a “sleeping giant” in the DeFi space, citing its unused capital. He noted that XRP, with a market valuation near $100 billion, lacks yield-generating products and native DeFi infrastructure. “There’s no DeFi ecosystem for it,” he said during an interview with Crypto Banter.
He believes that pairing XRP with real-world assets and yield platforms could shift billions into DeFi. Platforms like Flare are beginning to introduce such solutions, but the market remains largely underdeveloped. According to the Cardano founder, this gap presents an opening for new players to lead.
Hoskinson argued that XRP’s size and liquidity make it ideal for building scalable DeFi products. He suggested that the capital locked in XRP, if activated, could support a multibillion-dollar DeFi economy. He emphasized the need for proper infrastructure to attract institutional and retail participants alike.
The Cardano founder also discussed Bitcoin DeFi, describing it as another overlooked opportunity with massive value. He pointed out Bitcoin’s $2.4 trillion market cap and lack of yield solutions as a mismatch. “We have a native advantage because both Bitcoin and Cardano use UTXO,” Hoskinson said.
He explained that Cardano smart contracts can run on Bitcoin due to their shared architecture. This compatibility could allow seamless DeFi products between the two networks. According to Hoskinson, unlocking this potential can bridge liquidity and expand Cardano’s role in Bitcoin DeFi.
He said that Bitcoin remains underutilized in decentralized finance, and new tools could unlock dormant value. The Cardano founder stressed that with the right strategy, Bitcoin DeFi could rival Ethereum-based ecosystems. He views interoperability as a core strength for future DeFi platforms.
Cardano founder Charles Hoskinson acknowledged that Cardano lags in DeFi compared to Solana and other platforms. Cardano’s total value locked remains under $1 billion, and growth in stablecoins has been weak. However, he emphasized that markets often price projects based on vision and community.
“Cardano has 1.3 million staked wallets and the largest on-chain governance system,” said the Cardano founder.
He added that those metrics support long-term resilience and decentralized growth. Despite low DeFi metrics, Cardano maintains a strong level of developer and community involvement.
He highlighted other projects like Midnight and Hydra, which aim to scale performance and enhance privacy. Midnight already has over 100 partnerships, including Brave and Blockchain.com.
