Cardano’s Hoskinson Says Midnight Could Unlock Institutional Privacy for Bitcoin and XRP

• Cardano’s Charles Hoskinson says that integrating Midnight into XRP’s DeFi ecosystem would “blow the legacy banks out of the water.”
• He added that Bitcoin’s integration of Midnight would introduce the world Satoshi Nakamoto had imagined when he launched Bitcoin.

Cardano’s Midnight Network could be the missing piece that propels the growth of decentralized finance (DeFi) on the XRP Ledger and Bitcoin, says founder Charles Hoskinson.

As CNF reported, Midnight launched earlier this month as a sidechain of Cardano, focused on privacy through zero-knowledge cryptography. Its popularity has soared since launch, with listings on tier 1 exchanges and DEXs. It has even launched a new fellowship targeting some of the most talented developers in the space, as we previously detailed.

Midnight’s impact goes beyond the Cardano ecosystem and will impact the entire blockchain ecosystem, Hoskinson now says.

“Midnight makes what it touches better. Adding Midnight to XRP DeFi is going to blow the legacy banks out of the water. Adding Midnight to Bitcoin gives the world Satoshi imagined possible,” he wrote on X.

According to data from DeFiLlama, DeFi on DeFiLlama still lags behind most major chains, with only $64 million in total value locked. Initiatives like the launch of cbXRP on Base, which users can lend and borrow without selling their XRP holdings, have failed to ignite the network’s DeFi.

Hoskinson says integrating Midnight would also bring Satoshi’s dream into reality. Bitcoin’s privacy is limited, relying on pseudonimity as all transactions are public and permanent. Solutions like Taproot and the Lightning Network have improved privacy, but still don’t compare to more privacy-focused networks. A sidechain like Midnight could offer the privacy that BTC users need.

Hoskinson: Midnight Supercharges Cardano’s DeFi Ecosystem

While it could boost XRP and Bitcoin, Midnight’s biggest impact will be on Cardano. According to Hoskinson, it will “supercharge our DeFi ecosystem and will 10x the MAUs, Transactions, and TVL as we are first to market with private DeFi at scale.”

While bigger than XRP’s, Cardano’s DeFi is still a fraction of its large-cap rivals like Ethereum and Solana. DeFiLlama data shows that the network has $182 million in total value locked. It’s a steep drop-off from its peak in December last year, when it hit $700 million. As we reported earlier this year, the ratio of stablecoin market capitalization to DeFi TVL on Cardano is 10%, while Ethereum and Solana hit 195% and 125%, respectively.

Hoskinson’s proposal is the latest of his efforts to promote collaboration with other chains. A week ago, he proposed a cross-chain bridge between Cardano and Solana, which would enable Cardano to tap into Solana’s $8.4 billion DeFi sector.

ADA trades at $0.3712 at press time, opening the week with a slight dip amid a 40% recovery in its trading volume.