Cardano Eyes Massive Ripple Deal: $165M TVL Boost Potential

• Ripple and Cardano Talks: Charles Hoskinson confirmed discussions with Ripple on integrating the RLUSD stablecoin into Cardano, addressing criticism of the network’s limited stablecoin options.
• Ripple’s RLUSD Growth: RLUSD, with $600M in supply and growing exchange listings, is gaining traction across Ethereum and the XRP Ledger.
• Cardano’s Stablecoin Gap: Integrating RLUSD could boost Cardano’s TVL from $165M, aligning it closer to Ethereum’s $22B ecosystem.

Charles Hoskinson, Cardano’s founder, has revealed ongoing talks with Ripple regarding the potential integration of the Ripple USD (RLUSD) stablecoin into the Cardano blockchain. Speaking in a recent post, Hoskinson confirmed, “We are actively talking.” This comes as the Cardano ecosystem faces criticism for its lack of popular stablecoin options, including the widely used USDC.

Jane, we've already had a call with the RLUSD people. We are actively talking

— Charles Hoskinson (@IOHK_Charles) January 13, 2025

Back in 2021, ADA reportedly had the chance to collaborate with Circle, the issuer of USDC, but the deal fell through. Hoskinson has clarified that Input Output Global (IOG), the company he leads, will not fund such integrations, stating, “The company’s private profits are not ‘the people’s money.'”

Meanwhile, RLUSD has gained significant traction since its launch last month. The stablecoin is already listed on exchanges like Bitstamp and Bullish, with Ripple President Monica Long hinting at further listings. Hoskinson expressed admiration for the RLUSD team, calling them “smart professionals.” Despite this, the path to integrating RLUSD into Cardano remains unclear. For now, the stablecoin is supported on Ethereum and the XRP Ledger, with Ripple signaling plans to expand to other blockchains.

Cardano’s Need for a Robust Stablecoin Ecosystem

Hoskinson emphasized the importance of expanding the stablecoin offerings, which currently include USDM and Djed. He noted, “If there is a reasonable path to integrating RLUSD, I’ll try to cover it as a gift to the ecosystem.” ADA’s blockchain currently handles over 75,000 daily transactions but lacks the liquidity provided by major stablecoins like USDC and RLUSD.

Integrating RLUSD could attract a broader audience to Cardano’s ecosystem, boosting its total value locked (TVL), which stands at $165 million as of January 2025. By comparison, Ethereum boasts a TVL exceeding $22 billion, partly due to its robust stablecoin integrations.

RLUSD has quickly risen to prominence, with $600 million in total supply and daily trading volumes exceeding $40 million. Ripple’s ambition to expand RLUSD’s adoption aligns with ADA need for a more competitive DeFi infrastructure.

Despite the optimism, challenges remain. ADA must address technical and governance issues to make RLUSD integration viable. Additionally, Ripple must demonstrate the stability of stablecoin across blockchains. Both companies are under pressure to deliver, given the high expectations from their communities.

The partnership between Ripple and Cardano could reshape the stablecoin landscape if successful. RLUSD integration represents an opportunity to bridge a critical gap. For Ripple, it’s a chance to showcase RLUSD’s versatility.