Charles Hoskinson Proposes Gateway to Unlock Ripple’s XRP $136 Billion DeFi Potential On Cardano

XRP, the third-largest cryptocurrency by market cap at over $136 billion, could soon enter a new chapter in Cardano’s DeFi ecosystem. 

Charles Hoskinson, founder of Cardano and CEO of Input Output Global, proposed a plan to integrate XRP into Cardano’s DeFi ecosystem using the blockchain’s privacy-oriented sidechain, Midnight.

In a livestream aired June 2025 and later reposted by the Angry Crypto Show on X, Hoskinson described a proposal to create a cross-chain bridge between XRP and Midnight.

Once bridged, XRP tokens would gain access to Cardano-native DeFi services such as staking, yield farming, lending, and liquidity pools.

Midnight: Cardano’s Privacy Bridge to DeFi

Midnight is a zero-knowledge-based sidechain that Input Output Global has been developing since 2022. Built on Cardano’s extended unspent transaction output (eUTXO) model, it supports confidential smart contracts with enhanced privacy. It entered the testnet phase in 2024 and is scheduled for mainnet deployment in 2025.

Hoskinson stated in the livestream that XRP users, once connected through this cross-chain bridge, will benefit from secure and private DeFi interactions.

He emphasized that Midnight’s focus on transaction confidentiality could be a key feature for XRP holders seeking utility beyond the XRP Ledger, which has limited DeFi capabilities.

XRP DeFi: A Gap in the Ledger

XRP Ledger (XRPL), developed by Ripple Labs, supports fast and low-cost payments but lacks native DeFi infrastructure. 

Unlike Ethereum or Cardano, XRPL does not have an integrated ecosystem for staking or yield-generating protocols. The proposed bridge to Midnight addresses this limitation directly.

Hoskinson’s plan could enable XRP holders to participate in on-chain DeFi activity for the first time, offering them new earning opportunities. It would also deepen Cardano’s multi-chain strategy, bringing another high-volume token into orbit.

Cardano is making additional moves to support the XRP community alongside the bridge. Hoskinson confirmed that XRP wallets will be eligible for the upcoming Glacier Drop, an airdrop campaign tied to the Midnight ecosystem. Eligible wallets will receive NIGHT and DUST tokens, Midnight’s native and utility assets.

Cardano’s Lace wallet will soon support XRP, allowing users to hold and swap XRP alongside ADA and other native assets. This marks a step toward multi-chain asset management in the Cardano ecosystem.

Hoskinson also disclosed that discussions are underway regarding the possible integration of Ripple’s RLUSD stablecoin. While no timeline or official confirmation has been released, the conversation signals potential for broader collaboration between Ripple and the Cardano ecosystem.

The alignment of XRP with Cardano’s infrastructure represents a rare case of two top-10 blockchain projects bridging functionality. 

While previous attempts to link major chains have often stalled due to technical or governance hurdles, Hoskinson’s proposal positions Midnight as an interoperability layer that could simultaneously address privacy and utility.

No official launch date has been given for the XRP-Midnight bridge. However, with Midnight’s mainnet expected in 2025 and increasing development activity reported in Q1 2025, the groundwork appears to be advancing.