Cardano may soon welcome a new addition as discussions about the possible integration of Ripple’s RLUSD stablecoin continue to gain ground. If the integration is successful, it may lead to a complete shift in how these two established altcoins relate to one another.
From Rivalry to Collaboration
The dynamics between Cardano and Ripple seem to have started changing for the better in recent times. While Hoskinson once held reservations about Ripple’s approach, his stance seems to be shifting after having productive discussions with the team. After meetings with Ripple’s leadership, including CEO Brad Garlinghouse and CTO David Schwartz, Hoskinson has realized how much both networks have in common. Interestingly, the initial talks have proved promising, as Hoskinson noted that working with Ripple has been straightforward.
RLUSD, which launched in December 2024, currently operates on Ethereum and the XRP Ledger with a market cap of $53.09 million. The stablecoin has already gained traction, securing listings on major exchanges like Bitstamp and Bullish. Its trading volumes have shown impressive growth, surging 106% in recent market activity.
Integration Plans and Technical Framework
The proposed integration could leverage Cardano’s Midnight sidechain, a privacy-focused network designed to enhance secure transactions and data privacy. This integration would not only expand RLUSD’s reach but also strengthen Cardano’s stablecoin ecosystem, which Hoskinson acknowledges needs development.
The technical framework for this integration plans to make use Cardano’s layered architecture, specifically the Cardano Settlement Layer (CSL) and Cardano Computation Layer (CCL). This structure would ensure secure, fast transactions while maintaining independent computational logic for smart contracts.
Hoskinson has suggested implementing a self-service model for the integration, similar to Coinbase’s Rosetta framework, making it easier for serious projects to onboard. If successful, this integration could position Cardano as a key player in the evolving digital asset landscape while providing RLUSD with access to Cardano’s robust proof-of-stake consensus mechanism.
Beyond Integration: How Cardano and Ripple Could Transform DeFi
The collaboration goes beyond technical integration just for the sake of it. Both parties see promise in joining Cardano’s expertise in scalability and sustainability with Ripple’s strength in payments and stablecoins. This partnership could enhance blockchain interoperability and drive broader adoption of decentralized technologies.
While the integration is still in the discussion phase, Hoskinson has committed to covering it “as a gift to the ecosystem” if a reasonable path forward emerges. This move could be particularly significant for Cardano, which previously missed an opportunity to integrate USDC in 2021.
The timing of these discussions coincides with broader market developments, including RLUSD’s recent expansion into DeFi through Chainlink integration. As both networks continue to evolve, their potential collaboration could create new opportunities for developers, businesses, and users across both ecosystems.
