Cardano and XRP Forge Defi Alliance through Midnight Sidechain
Charles Hoskinson, the founding visionary of Cardano, described a strategic movement to bring decentralized finances (defi) to the XRP ecosystem, without forcing users to migrate the assets of the book XRP book. In the center of this plan it is MidnightSidechain centered on Cardano’s privacy designed to extend the capacities to the XRP holders.
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Unlock defi in XRP, without migratory assets
In a recent Ask-Me-Aything session, Hoskinson confirmed that the midnight protocol will allow XRP holders to access characteristics such as stagnations, loans and liquidity swimming pools while maintaining their tokens in the XRPL. Key innovation is a bridge without trust that allows XRP to interact with the Midnight intelligent contract framework, preserving asset custody in the original chain.
This integration addresses the long data limitation of XRP: the inability to support native intelligent contracts. When using midnight, holders obtain financial utility without sacrificing security or fragmenting the ecosystem.
Core privacy: intelligent zero knowledge contracts
Midnight is distinguished by embedding zero knowledge cryptography To guarantee the confidentiality of the transaction. Users can participate in Defi, such as leverage loans or secret vote, without exposing the balances of the wallet or the details of the transaction in the chain.
This privacy layer is expected to attract institutional investors and individuals aware of privacy that require discretion in their financial interactions.
Wallet evolution: Lace wins XRP support
Beyond the integration of the protocol, Cardano’s Lace wallet It is configured to admit XRP, allowing a perfect management of ADA, XRP and other main assets of a single interface, without needing multiple wallets.
This feature significantly reduces user friction and promotes a multiple asset management experience under reliable application.
RLUSD: A Linchpin with USD rays
Looking to the future, Cardano and Ripple are exploring the integration of RlusdA stablecoin backed by USD proposed by Ripple. Embarting Rlusd at midnight would provide vital liquidity for defi markets built on the side chain.
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This movement would effectively combine the stability of RLUSD prices with the liquidity of XRP, strengthening more the bases for defi use cases.
Dual Airdropps: Midnight and Glacier programs
To start adoption, Cardano has launched two tokens distribution initiatives:
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Midnight Drop & Glacier Drop: XRP holders who had at least $ 100 in XRP before June 11, 2025 are eligible to claim part of 1.2 billion night Government tokens
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Extended support: Participants through multiple chains (Ethereum, Solana, Avalanche and XRP) are included in the campaign
These aerial drugs aim to create a basic user base and cause the initial participation of governance.
A future of multiple chains: the launch of Mainnet in Horizon
Midnight is live in Testnet and is expected to be launched in Mainnet at the end of 2025. It will support interoperability with Ethereum, Solana, Avalanche and critically XRPL, which makes it a true hub of multiple chains
This cross -chain capacity places midnight as a layer that changes the game in the evolution -decentralized financial panorama.
Strategic implications
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For XRP: It offers a new utility without forcing asset migration: sessions, rethinking and liquidity grouping can occur natively.
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For Cardano: The XRP community is ready and improves the lace wallet portfolio.
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For crypto in general: Models of a cooperative, instead of adversing, focuses on blockchain ecosystems.
What is coming?
The challenges remain: implement safe bridges, guarantee tokens audits and coordinate governance structures in the chains. In addition, Ripple’s regulatory position could affect the speed of deployment. But with Hoskinson in discussions with Ripple’s leadership, including the CEO Brad Garlinghouse and CTO David Schwartz, both camps seem committed to technical alignment
As Testnet midnight transitions to Mainnet, full wallet support and RLUSD integration could materialize in early 2026. The first defi applications can follow shortly after, with the form of governance and privacy.
Conclusion
This historical collaboration between Cardano and Ripple points out a proactive change in philosophy defi: Interoperability and cooperation Ecosystems on roasts. By combining the privacy and intelligent contracts of Midnight with the speed and liquidity of XRPL, this association could unlock defi for millions. It is a promising step towards a more unified and multiple future, and one that could establish new standards for blockchain synergy.
Writer
@Ellena
Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.
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