A partnership between Cardano and the XRP ecosystem has gained momentum amid prospects of a Tokeo Wallet integration on the XRPL.
Cardano-based next-generation smart wallet Tokeo Wallet plans to integrate with the XRP Ledger, sparking widespread enthusiasm among Cardano and XRP enthusiasts. Community pundit Angry Crypto Show brought this to the limelight in a post on Tuesday, with the Tokeo Wallet’s official X account confirming the plans.
A Start of the Long-Teased Partnership?
The July 15 tweet disclosed that Cardano’s Tokeo Wallet is currently exploring a possible integration into the XRP Ledger. The incorporation aims at creating interoperability between the Cardano network and the XRP Ledger, laying the foundation for future collaborations.
Nonetheless, this contributes to a broader effort within the Cardano ecosystem to establish interoperability with the XRP Ledger. Recall that Lace Wallet, Cardano’s official wallet, also plans on adding support for XRP, enabling users to hold the Ledger’s native tokens on the Cardano network.
Meanwhile, Cardano founder Charles Hoskinson has long teased a possible partnership between the two chains. He disclosed in June a “whole XRP package” with the Midnight airdrop, including XRP DeFi and RealUSD integration.
Midnight to Become the DeFi Layer of XRP
Furthermore, Hoskinson noted that Cardano’s sidechain, Midnight, will play a crucial role in the integration with XRP. Specifically, he stated that he wants the privacy-focused chain to become a DeFi layer of the XRP Ledger.
Notably, this would allow XRP holders access to a wide range of DeFi features while keeping their stash on the XRPL network. With this, Cardano would unlock billions in liquidity from the XRP ecosystem while offering smart contract functionality and DeFi applications.
Meanwhile, Hoskinson has recently had a good relationship with the XRP ecosystem. He recently disclosed contact with executives of Ripple, one of the core contributors to the XRP Ledger. If the partnership pulls through, it will boost developer activity on Cardano and help address its TVL and stablecoin challenges.
Interestingly, the Cardano founder is also pursuing a similar course with the Bitcoin network. He plans to unlock DeFi on Bitcoin, teasing that it would be bigger than that of Ethereum and Solana.
