XRP News Today: Cardano Founder Proposes XRP Integration for DeFi Access

Cardano’s founder, Charles Hoskinson, has proposed a significant plan to integrate XRP holders into the decentralized finance (DeFi) ecosystem using Midnight, Cardano’s privacy-focused sidechain. This initiative aims to provide XRP holders with access to higher-yield opportunities by leveraging Cardano’s DeFi infrastructure.

Hoskinson’s proposal involves bridging XRP tokens to Midnight, allowing holders to participate in yield farming, staking, liquidity pools, and other DeFi functionalities. This move could mark a major milestone in merging two influential blockchain ecosystems, Cardano and XRP. By enabling XRP tokens to interact with Cardano’s DeFi protocols, holders could earn improved returns compared to traditional custodial staking solutions. This would open up new avenues for XRP beyond its traditional use in payments and remittances.

Midnight, introduced in 2022, is a privacy-enhancing sidechain built on the extended UTXO (eUTXO) model. It allows developers to deploy confidential smart contracts without impacting the integrity of Cardano’s main chain. The platform is designed to host DeFi applications, making it an ideal solution for assets like XRP that lack native smart contract functionality. As Midnight moves toward its mainnet debut later in 2025, Hoskinson continues to highlight its cross-chain potential, with XRP emerging as a key partner asset.

Hoskinson’s commitment to XRP integration extends beyond DeFi. Earlier this year, he announced that XRP wallet addresses would be eligible for Midnight’s upcoming airdrop campaign, 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.

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 bring 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.