Cardano founder Charles Hoskinson has pitched Midnight Protocol as a cross-chain privacy layer designed for Bitcoin, XRP Ledger, and other networks to meet compliance while preserving user privacy. He envisions Midnight expanding Cardano’s reach beyond its native chain by integrating with these ecosystems. Midnight would provide programmable privacy features that Bitcoin currently lacks, enabling privacy-preserving DeFi that aligns with regulatory expectations.
Hoskinson described Midnight as a catalyst for Cardano’s growth, suggesting the protocol could raise monthly active users and total value locked by extending activity to external ecosystems. By potentially integrating Midnight with the XRP Ledger, he argues the network could deliver privacy-compliant DeFi that challenges traditional finance. Additionally, he contends Midnight could serve as a privacy layer across other Layer-1s, enhancing liquidity and user bases beyond Cardano.
Hoskinson highlights real-world asset tokenization (RWA) as a large market opportunity, estimating it around $10 trillion, benefiting from Midnight’s privacy design. He warns that half-measures are inadequate and emphasizes the need for a coherent strategy, strong partners, and a robust community. This pivot toward cross-chain privacy signals a shift for Cardano and could attract liquidity and users from outside Cardano. Midnight’s native NIGHT token has drawn speculative interest, trading near $0.08 and down more than 80% since launch.
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