In a recent livestream, Cardano founder Charles Hoskinson gave some rare behind-the-scenes insight into ongoing discussions between Cardano and the RLUSD (Ripple USD) stablecoin team. And while there’s interest on both sides, nothing is set in stone just yet.
According to Hoskinson, early talks about integrating RLUSD onto Cardano began last year, and those conversations have continued into 2025. The Cardano team has even offered to support the integration for free, signaling a strong desire to bring more stablecoin activity to the ADA ecosystem.
But there’s a big wrinkle: the uncertain corporate future of Circle.
What you'll learn 👉
🧠 Circle Acquisition Talks Could Change Everything
One of the more surprising revelations from Hoskinson is that Ripple may be in talks to acquire Circle, the issuer of USDC. This rumored deal is reportedly valued at around $11 billion, and it’s a major variable in RLUSD’s future roadmap.
If Ripple acquires Circle, that would consolidate two of the most influential stablecoin entities under one roof – and according to Hoskinson, it would force a complete reevaluation of RLUSD’s development path and listing strategy. Simply put: if Circle becomes part of Ripple, RLUSD might no longer follow its current rollout plans. That includes whether or not it lands on Cardano.
🧩 How RLUSD Might Be Integrated – If It Happens
Hoskinson shared that his team has already proposed technical frameworks for integration. The two main approaches being explored are:
- A layer-zero routing model, which allows assets like RLUSD to be natively transferred across multiple chains without issuing them again.
- A more traditional direct issuance model, where RLUSD would be minted directly on Cardano.
Both options have pros and cons. Layer-zero routes offer more interoperability but are technically complex, while direct issuance gives Cardano more native control over the asset.
Despite not being part of Ripple, Cardano clearly sees the potential in RLUSD – especially when it comes to building out DeFi connections with the XRP ecosystem. Hoskinson emphasized the importance of stablecoins for XRP-related DeFi, which is still early but growing.
What’s notable is the tone: Cardano appears genuinely committed to supporting XRP-related tools, despite the historically rocky relationship between the two communities. In fact, things seem to be changing.
🔗 Cardano and Ripple – From Rivalry to Collaboration?
Back in April, it was confirmed that Cardano’s Lace wallet would soon allow users to store, send, and receive XRP. This step alone marked a shift toward cooperation between the two networks.
And now, with Hoskinson confirming that relations with Ripple have improved, it looks like more collaboration may be on the horizon. This could include technical bridges, wallet integration, and maybe even shared smart contract functionality.
🌉 Midnight Could Bridge the Smart Contract Gap
In a recent interview with eToro’s Sam North, Hoskinson floated another big idea: using Cardano’s Midnight blockchain as a privacy-preserving bridge to support Bitcoin and XRP.
He pointed to a key limitation in both networks: neither the XRP Ledger nor Bitcoin have advanced smart contract features. Midnight, a sidechain designed for confidentiality and programmable logic, could act as the missing link – bringing DeFi and dApp capabilities to two of the oldest and most widely used blockchains.
Hoskinson even suggested this could help boost Cardano’s total value locked (TVL) to levels beyond Solana and Ethereum combined, though that claim feels aspirational for now.
🧠 What’s the Conclusion?
This thread reveals a lot more than just an update on RLUSD. It shows that Cardano is quietly working on becoming a core interoperability player, not just a Layer 1 smart contract platform.
If RLUSD joins Cardano, it would signal a deeper alliance between XRP and ADA communities – and if Ripple does acquire Circle, that deal could reshape the entire stablecoin landscape. Add in Cardano’s work on Midnight, and the strategy becomes clearer: Cardano wants to be the connective tissue between major crypto ecosystems.
It’s a long game – but if Hoskinson’s vision plays out, it could put Cardano in a much stronger position than most people expect.
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