Cardano may be gearing up for a major DeFi expansion, and it could all start with RLUSD. Ripple’s U.S. dollar-backed stablecoin is in early-stage talks with Cardano, and traders are already speculating on what that could mean for the ecosystem.
Cardano founder Charles Hoskinson confirmed back in May that his team had already met with RLUSD developers. During a livestream on May 24, he said the goal was to bring the stablecoin to Cardano before the end of the year. While nothing is official yet, the market is paying close attention.
A trader known as Merlijn The Trader broke down three key reasons why RLUSD integration could be a game-changer for Cardano.
1. More Liquidity for Cardano
Merlijn believes the first big benefit would be deeper liquidity. If RLUSD were to become tradable on Cardano, it could attract fresh traders and liquidity providers to Cardano-based exchanges.
That would mean smaller spreads, smoother trading, and higher volumes in decentralized exchanges. Since stablecoins are widely used as the base currency of DeFi, RLUSD may be able to push the entire ecosystem up.
Analyst Highlights Benefits If $RLUSD Gets Successfully Integrated Into #Cardano.🧵🧵🧵 pic.twitter.com/ZB2imepouV
— TheCryptoBasic (@thecryptobasic) July 1, 2025
2. Better Yield Farming and Earning Potential
The second potential benefit is more yield farming options. With RLUSD-backed pools, users could gain access to more stable and reliable yield opportunities, including staking, lending, and farming. These types of tools are already popular in DeFi, but Merlijn believes RLUSD could make them more accessible on Cardano.
3. Cross-Chain DeFi Powered by LayerZero
If integration is accomplished through a protocol like LayerZero, cross-chain capabilities may be opened up. It would then become possible for Cardano users to access DeFi apps and assets on other networks, like Ethereum or BNB Chain, without ever exiting the Cardano network. This could bring additional flexibility and efficiency to DeFi projects built on Cardano.
According to DeFiLlama, Cardano has a total value locked (TVL) of $244.44 million, with just $31.36 million in stablecoins. A successful RLUSD integration could help close that gap and bring more users and capital to the network.
Moreover, Hoskinson also teased the idea of a privacy-focused stablecoin, saying many users may want more control over how their transactions are shared. His idea includes “selective disclosure” and a “seasonal freeze” mechanism to protect privacy.
If RLUSD does join Cardano, it could mark a big step forward for the project’s DeFi ambitions.
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