Cardano Creator Unveils Big Plan for XRP Holders

Cardano’s visionary founder, Charles Hoskinson, is extending an olive branch to the XRP community with a proposal that could revolutionize how XRP holders engage in decentralized finance (DeFi). In a recent livestream, Hoskinson introduced a bold concept—leveraging Midnight, Cardano’s privacy-focused sidechain, as a dedicated DeFi platform for XRP.

A Bridge Between Cardano and XRP

In a highlighted clip shared by Cardano-centric media outlet Angry Crypto Show, Hoskinson pitched the idea of transforming Midnight into the DeFi engine for the XRP ecosystem. This would give XRP holders access to higher-yield opportunities by allowing them to interact with Cardano’s DeFi infrastructure.

The proposal hinges on enabling XRP tokens to bridge over to Midnight, granting access to yield farming, staking, liquidity pools, and other DeFi functionalities traditionally unavailable to native XRP holders. This move could serve as a major milestone in merging two of the most influential blockchain ecosystems.

JUST IN: #Cardano $ADA Founder Charles Hoskinson says "I'd love for Cardano and Midnight to be the DeFi layer of the $XRP ecosystem, so they can stay and continue to be XRP, but then Ripple and XRP holders can get much better yields." pic.twitter.com/pQHDr3xICE

— Angry Crypto Show (@angrycryptoshow) June 14, 2025

What Is Midnight?

Midnight was first introduced in 2022 as a privacy-enhancing sidechain for Cardano. Two years later, in 2024, Input Output Global (IOG), Cardano’s R&D firm, launched the Midnight testnet to demonstrate the platform’s capabilities.

Built on the extended UTXO (eUTXO) model, Midnight allows developers to deploy confidential smart contracts without impacting the integrity of Cardano’s main chain. More than just a privacy solution, Midnight is shaping up to be a versatile platform for hosting DeFi applications, especially for assets like XRP that don’t have native smart contract functionality.

As the project moves toward its mainnet debut later in 2025, Hoskinson continues to spotlight its cross-chain potential, with XRP now emerging as a key partner asset.

DeFi Yields for XRP: A Game-Changer

Hoskinson emphasized that once bridged to Midnight, XRP tokens can be deployed into Cardano’s growing ecosystem of DeFi protocols. This would allow holders to earn improved returns compared to traditional custodial staking solutions.

In his words, the objective is to offer “much better yields” by opening the doors of Cardano’s DeFi infrastructure to XRP holders. These returns could be realized through standard DeFi strategies like staking, lending, and liquidity provision.

This innovative push mirrors a similar move by crypto exchange Uphold, which recently announced a partnership with Flare Network to help XRP investors earn passive income via DeFi opportunities. Together, these initiatives signal a shift in how XRP can be utilized beyond payments and remittances.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

Airdrops and Wallet Integration

Beyond DeFi, Hoskinson’s commitment to XRP integration runs deeper. Earlier this year, he announced that XRP wallet addresses would be eligible for Midnight’s upcoming airdrop campaign, dubbed the Glacier Drop. This initiative will distribute NIGHT and DUST tokens to over 37 million eligible wallets across various chains, including the XRP Ledger.

Additionally, XRP is set to gain support on Lace, Cardano’s official non-custodial wallet, enabling seamless storage and management of XRP alongside Cardano-native assets.

Ripple USD (RLUSD) on the Horizon?

Hoskinson also hinted at the possibility of integrating Ripple’s USD-backed stablecoin, RLUSD, into the Cardano blockchain. While discussions are still ongoing, such a move would represent another step in bringing more real-world utility to both networks.

The series of initiatives, from DeFi access and wallet support to airdrops and discussions on stablecoins, is being framed by Hoskinson as a comprehensive expansion of the XRP ecosystem. He described the collection of features as a “whole package” designed to bring real value and utility to XRP holders.

With Hoskinson’s ambitious proposal, the Cardano and XRP ecosystems are inching closer to unprecedented interoperability. If successful, Midnight could open the floodgates for millions of XRP holders to participate in the DeFi economy, marking a significant evolution in how the asset is used and valued.

By reimagining Midnight as XRP’s DeFi backbone, Hoskinson isn’t just bridging chains; he’s building a collaborative future for blockchain utility.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

---

Follow us on Twitter, Facebook, Telegram, and Google News