In a significant development that could reshape the future of decentralized finance (DeFi), Cardano founder Charles Hoskinson has laid out a strategy to bring XRP into the Cardano ecosystem using Midnight, Cardano’s upcoming privacy-focused sidechain. The proposal, revealed during a recent livestream, envisions Midnight acting as a secure and private DeFi gateway for XRP holders.
According to Hoskinson, the plan includes the creation of a cross-chain bridge that will allow XRP to be transferred into Midnight’s network. Once bridged, these tokens could be deployed across Cardano’s DeFi protocols, offering services like staking, yield generation, lending, and liquidity provisioning — all areas where XRP currently has limited native utility.
This proposal marks one of the most ambitious cross-ecosystem moves involving XRP to date. While XRP has long been positioned as a tool for cross-border payments, its DeFi capabilities have remained underdeveloped compared to other layer-1 assets. Cardano’s proposition could change that by offering XRP holders new ways to engage in the growing world of decentralized finance, with enhanced privacy built in.
Midnight’s Role in a More Private and Interconnected Future
Midnight, first introduced in 2022, has been designed as a zero-knowledge-powered sidechain for Cardano, offering private smart contracts based on an extended UTXO model. Its architecture is intended to accommodate enterprise-grade confidential computing, leveraging technologies such as zero-knowledge proofs and specialized programming tools like the DUST language.
Although still in development, Midnight moved into public testnet phases in 2024 and is anticipated to launch its mainnet in 2025. Hoskinson has repeatedly framed it as a foundational pillar of Cardano’s future, especially for cross-chain functionality. The integration with XRP is being positioned as one of Midnight’s earliest and most visible use cases.
XRP to Receive Airdrop Benefits and Wallet Integration
To encourage adoption, Cardano is planning to include XRP wallets in Midnight’s upcoming “Glacier Drop” campaign — an airdrop initiative that will distribute the chain’s native tokens, NIGHT and DUST, across a wide spectrum of users. This airdrop will span millions of wallets across multiple networks, making it one of the most expansive token distributions ever proposed by the Cardano community.
In addition, Hoskinson confirmed that support for XRP will be added to the Lace wallet, Cardano’s official wallet platform. This update will enable users to manage and transact with XRP alongside other Cardano-native assets, streamlining the user experience and tightening the integration between the two ecosystems.
Talks Around Stablecoin Collaboration Also Underway
Adding further weight to the integration narrative, discussions are underway about incorporating Ripple’s stablecoin, RLUSD, into Cardano’s infrastructure. While no deal has been finalized, Hoskinson noted that such collaboration would expand the scope of both ecosystems, offering more robust options for stable payments and decentralized finance.
From a strategic standpoint, these developments reflect a broader vision. Hoskinson has framed the integration not as a single technical feature but as a bundled initiative meant to extend XRP’s capabilities far beyond its current limits. By tapping into Midnight’s privacy tools and Cardano’s DeFi network, XRP could find new life as a multifaceted asset within a larger blockchain ecosystem.
Looking Ahead
The potential partnership represents a convergence of two distinct blockchain philosophies: Cardano’s methodical, privacy-first approach and Ripple’s focus on efficient global value transfer. By bridging the two, Cardano aims to create not just a functional cross-chain bridge but a meaningful gateway that brings liquidity, privacy, and utility to assets that have long been siloed.
While the initiative is still in its early stages, the message is clear: Cardano is positioning itself as a hub for cross-chain DeFi, and XRP could become one of its earliest beneficiaries. With the launch of Midnight on the horizon and new tools rapidly coming online, the future of blockchain interoperability and XRP’s role within it may be closer than many expect.
