Cardano Expands DeFi Access Through Midnight Sidechain

Charles Hoskinson, founder of Cardano, has outlined a bold new vision- one that could bring Cardano and XRP closer than ever before. 

At the heart of this plan is MIdnight, a privacy focused sidechain built on Cardano that could act as a DeFi gateway for the XRP community. 

Source: X

Midnight: Bringing DeFi to Ripple without leaving the ledger 

Ripple has always been fast and efficient- but it’s missed out on one big thing: smart contracts.

That's limited what users could do in the world of DeFi. But Charles Hoskinson has a fix in mind. 

In a recent AMA, he shared that Midnight Cardano's privacy-focused sidechain, will let Ripple holders tap into DeFi features like staking, lending and liquidity pools– without moving their XRP off the XRPL. 

In simple terms, you keep your XRP right where it is and still get access to powerful tools. 
Privacy Powered Small Contracts 

One of Midnight’s standout features is its use of zero-knowledge cryptography, which enables private, confidential smart contract interactions. 

With this technology, users can engage with DeFi platforms while keeping their financial activity secure and hidden from public view- a major upgrade for privacy conscious investors. 
Lace Wallets and RLUSD Integration in the works
But the partnership isn’t about Midnight. It’s expanding into the broader Cardano ecosystem too.

Hoskinson revealed that Cardona’s Lace Wallet Will soon support Ripples, making it easier for users to manage all their assets- ADA,XRP and more under one roof. 

And there’s more in  the pipeline. Discussions to Integrate Ripple’s RLUSD Stablecoin into Its Network

If it happens, it would offer a USD-pegged stablecoin option for DeFi apps Midnight-bringing much-needed liquidity and price stability to the platform’s growing ecosystem. 
Ripple Exces on Board with the vision 
This isn’t a one-sided initiative. Hoskinson revealed that he has already been in talks with Rippl’s top brass, including CTO David Schwartz and CEO Brad Garlinghouse. 

The goal is to ensure seamless technical integration between Midnight and Ripples's Ledger Home combining Cardano’s smart contract capabilities with XRP’s strength in liquidity and cross-border transactions.

Airdrops to Fuel Adoption

To get the community involved, Cardano is rolling out two airdrops campaigns- the Midnight Drop and the Glacier Drop. 

If you held at least $100 worth of XRP on or before June 11, 2025, you’re lucky- you may be eligible to claim a share of the 1.2 billion NIGHT Tokens up for grabs.

These tokens won’t just be collectibles- they’ll play a key role in governing the Midnight network as it evolves. 

Midnights Multi-Chain Future 

Midnight is already live on testnet, and a mainnet launch is expected later this year. 

Once launched, it will support interactions with Ethereum, solana, Avalanche and now XRPL– positioning as a serious player in the multi-chain DeFi landscape. 

Source: Twitter

Final Thoughts 

This partnership makes a major step forward for both ecosystems. For XRP, it unlocks a world of DeFi possibilities without compromising on-chain security.

For Cardano, it’s a chance to expand its tech to a new user base. And for the broader crypto space, it signals a future where collaboration beats competition. 

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