Hoskinson: XRP and Midnight Are “100x Beyond” Legacy Finance in RWA Tokenization
Cardano founder Charles Hoskinson criticized legacy finance initiatives like the Canton Network—backed by institutions such as State Street and BNY Mellon—as underambitious for real-world asset (RWA) tokenization. He argued that blockchain-native projects, notably the XRP Ledger (XRPL) and Midnight (Cardano’s privacy-preserving protocol), already deliver capabilities that traditional players are trying to recreate and said they operate at a “100x” higher level. Hoskinson framed the RWA opportunity as roughly a $10 trillion market that requires fully integrated, end-to-end strategies, credible partners, and committed communities — attributes he claims decentralized projects possess and legacy institutions lack. The comments prompted pushback from a developer questioning the empirical basis of the “100x” claim. The article notes XRPL’s combined RWA market cap of about $131 million (Messari) and Cardano’s participation in an LSEG-led project (MCM Fund I). The piece highlights intensifying competition in RWA tokenization and positions Midnight and XRPL as competitive alternatives to legacy finance approaches. (Disclaimer: informational, not financial advice.)
Neutral
Hoskinson’s comments are largely rhetorical and strategic positioning rather than new protocol launches or regulatory changes that directly alter market fundamentals. The assertion that XRPL and Midnight are “100x” beyond legacy finance aims to highlight competitive advantages in RWA tokenization but lacks immediate, quantifiable evidence that would drive large capital flows. Short-term impact: neutral to mildly positive for XRP and ADA-related sentiment as trader attention shifts toward their RWA narratives; however, without concrete adoption milestones or large institutional asset tokenizations, price reaction should be limited and likely short-lived. Long-term impact: potentially bullish if Midnight, XRPL, or Cardano secure significant RWA deployments or custody/settlement partnerships, because proven real-world asset flows (in the billions) would materially increase demand for associated infrastructure and tokens. Historical parallels: past proclamations (e.g., platform claims of RWA readiness) produced limited price moves until actual integrations or fund listings occurred (Ethereum-based RWA initiatives saw muted token effects until institutional on-ramps and custody were formalized). Key indicators traders should watch: announced enterprise partnerships, regulatory clarity for tokenized assets, measurable RWA TVL or market caps, and custody/settlement integrations with banks. Until such milestones appear, market effects remain sentiment-driven and thus neutral overall.