Charles Hoskinson, the founder of Cardano, recently revealed some behind-the-scenes plans to bring XRP and Ripple USD closer to the Cardano ecosystem. He discussed this during a public online session.
A Multi-pronged Approach
Hoskinson explained that the plan involves several initiatives, not just a single partnership. They’ve been in talks with various people and projects within the XRP ecosystem, including the Ripple USD team, Flair, John Deaton, and Brad Garlinghouse. The goal is to create a comprehensive “package” for XRP integration.
XRP Integration on Cardano
This package includes several key elements:
- Wallet Support: The Lace wallet will add support for XRP, improving its emergency support features.
- DeFi Layer: Cardano’s Midnight Cardano will provide a DeFi layer for XRP, enabling easy deployment of XRP smart contracts and applications without modifying the XRP Ledger itself. This lets XRP developers build on Cardano without altering the core XRP system.
- Ecosystem Expansion: Cardano aims to integrate projects like Flair into its banking system, bringing them under the Cardano infrastructure. This will depend on technical and commercial feasibility.
Ripple USD Integration: A Standardized Approach
The integration of Ripple USD is a more nuanced process. Hoskinson highlighted the following:
- Delayed Talks: Initial discussions with the Ripple USD team were delayed due to Ripple’s regulatory challenges and the need for clarity on the future of stablecoin yields, particularly concerning the Genius project.
- Standardized Onboarding: Cardano advocates for a standardized, self-service listing model for Ripple USD, similar to Coinbase’s Rosetta. This would allow other ecosystems to easily integrate Ripple USD without needing individual negotiations. This approach aims to make Ripple USD’s expansion more efficient and scalable.
- Open Standards: Hoskinson stressed the importance of open standards because neither Cardano nor the XRP team are experts in each other’s technology. Open standards streamline the integration process.
Cardano’s Proactive Approach
Cardano plans to take the initiative in the integration process. They will develop the technical integrations first, and then discuss commercial terms afterward. This proactive approach aims to facilitate smoother collaborations.
At the time of this writing, ADA was trading at $0.90.