Midnight to Unlock XRP's Next Growth Phase?

Cardano founder Charles Hoskinson believes that Ripple (XRP) may need Cardano's privacy-focused sidechain, Midnight, to unlock its next phase of growth. Speaking with Wendy O, Hoskinson noted that while Ripple has built a strong payment network, there is still an opportunity for XRP to expand into decentralized finance (DeFi), tokenization, and institutional finance.

Hoskinson argued that the next phase of crypto will focus on privacy, interoperability, and real-world assets. Midnight targets these trends, making it a potential game-changer for XRP's growth. Hoskinson views Ripple as one of the leaders in the 'Web 2.5' economy, alongside companies like Tether, Circle, and Binance.

Ripple still lacks a native smart contract ecosystem, limiting access to DeFi tools, yield opportunities, and tokenized assets for XRP holders. Hoskinson believes that Midnight can fill this gap by enabling developers to build XRP-related applications within the Midnight ecosystem.

Hoskinson sees institutions increasingly needing privacy, selective disclosure, compliance tools, and real-world asset infrastructure. Rather than forcing companies to migrate to a new blockchain, Midnight is designed to work across existing ecosystems, creating an open system that connects blockchains rather than competing with them.