Charles Hoskinson, the founder of Cardano, recently revealed his intention to make Midnight Cardano’s privacy-focused sidechain the primary DeFi layer for the XRP ecosystem. Speaking during a live Ask Me Anything (AMA) session, Hoskinson explained that the goal is to allow XRP holders and Ripple itself to enjoy advanced DeFi services without transferring tokens off the XRP Ledger.
According to Hoskinson, XRP can maintain its core identity while tapping into more robust DeFi options such as staking, lending, and liquidity pools. These features are currently out of reach on the XRP Ledger because it lacks smart contract functionality. It aims to solve this limitation by acting as a secure DeFi gateway.
Midnight, already live on testnet, uses zero-knowledge cryptography to support confidential smart contracts. This allows users to interact with DeFi apps while keeping personal data hidden. Through this mechanism, Midnight offers a secure and private way for XRP holders to access better returns.
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Hoskinson emphasized collaboration over rivalry, aiming to bridge Cardano and XRP rather than position them against each other. By connecting the XRP Ledger to Midnight, Cardano intends to create a seamless DeFi experience that doesn’t require XRP holders to abandon their native chain.
Further strengthening the partnership, Cardano plans to integrate XRP support into its Lace Wallet, enabling users to manage both XRP and other assets in one unified interface. At the same time, discussions are underway to bring RLUSD Ripple’s USD-backed stablecoin into the Cardano ecosystem. If successful, RLUSD will offer stable liquidity for DeFi applications running on Midnight.
Hoskinson has already held talks with Ripple leaders, including CTO David Schwartz and CEO Brad Garlinghouse. These conversations aim to align Cardano’s smart contract capabilities with XRP’s established strengths in global payments and liquidity.
To drive early participation, Cardano launched two airdrop campaigns Glacier Drop and the Midnight airdrop. XRP holders with at least $100 worth of XRP as of June 11, 2025, can claim a portion of the 1.2 billion NIGHT tokens, which govern the Midnight network.
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With Midnight’s mainnet expected to launch later in 2025, Cardano continues to test cross-chain support, including integration with Ethereum, Solana, Avalanche, and now XRP. Through this initiative, Cardano positions itself as a unifying force across multiple blockchain ecosystems.
