The collaboration will enable XRP holders to participate in yield farming and lending through Cardano’s DeFi layer, including the privacy-focused protocol Midnight.
Cardano founder Charles Hoskinson recently responded to the increasing curiosity of the blockchain community as to whether Ripple’s XRP and Ripple USD (RLUSD) stablecoin were supposed to land on the Cardano network. Although he did not specify a release date, Hoskinson dropped some hints about a much larger long-term strategy that is in progress between the two ecosystems.
When asked about the RLUSD stablecoin coming to Cardano, Hoskinson admitted that they are making progress on what he termed as a full-fledged “XRP package.” This project is characterized by various levels of interoperability such as the technical maintenance of the official Cardano wallet, Lace, DeFi and even an unprecedented delivery strategy known as ‘glacier drops.’
Though RLUSD sparked the conversation, Hoskinson made it clear the stablecoin is just one component of the large-scale plan. “These are discussions that are part of the overall Bitcoin DeFi agenda. It’s the same with XRP entering our space,” he stated during the discussion. The integration of RLUSD on the Cardano network is not the only priority as it seems that the company intends to establish a sound connection between both ecosystems.
Among the vital aspects of this integration is the planned integration of XRP in Cardano decentralized finance framework. This will also involve enabling XRP owners with the capability to lend their asset and yield farm, which have been severely lacking with the XRP ecosystem. “I’d love for Cardano Midnight to be the DeFi layer of the XRP ecosystem,” Hoskinson said as he referred to Cardano’s privacy-focused protocol.
Together with DeFi use, the native Cardano wallet, Lace, will be a key feature of the cross-chain project. Designed to improve the user experience within Cardano’s ecosystem, Lace would be enhanced to support XRP-based assets. It has the potential to enable users to have access to and control Ripple-associated cryptocurrencies directly through the wallet interface, to further simplify cross-chain utility.
Meanwhile, Hoskinson used a peculiar phrase during the discussion: “glacier drops,” which has attracted a lot of attention. Although it is not a widely used term in the crypto world, the term seems to mean a delayed release of tokens or a feature in stages. Instead of a traditional airdrop, this method implies the more measured and hibernal launch corresponding to the technical or adoption milestones up to the point of adoption.
Moreover, it’s important to note that Hoskinson didn’t shed light on concrete launching dates announced, but pointed out that planning and discussions are being advanced. He also revealed how significant the collaboration could be for Ripple. “So they can stay and continue to be XRP, but then they can get much better yields for their holders and for X Ripple itself, the company that created XRP,” he said.
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