Cardano Founder Says XRP and Midnight Are “100x Beyond” Legacy Finance

Cardano founder Charles Hoskinson argues that the legacy finance–backed Canton Network cannot match the performance of XRP and Midnight in the real-world asset (RWA) sector. 

In recent months, several traditional financial institutions, including State Street and BNY Mellon, have partnered on the Canton Network to advance RWA tokenization. For context, the platform aims to support private, compliant, and interoperable transactions of tokenized assets through a public-permissioned blockchain framework. 

Hoskinson Shades Legacy Finance’s Efforts in RWA Race 

Reacting to these developments, Hoskinson described the approach as underambitious compared to decentralized Web3 projects such as Midnight and the XRP Ledger (XRPL).

According to him, legacy institutions are attempting to recreate capabilities that XRPL and Midnight already deliver. He further claimed that XRPL and Midnight operate at a “100x” higher level relative to these traditional finance–led initiatives.

Moreover, the Cardano founder argued that legacy players continue to underestimate what makes Web3 fundamentally distinct and powerful. His comments, however, drew reactions from Krishna, a developer at Rocket Exchange, who questioned the basis of the “100x” claim. 

Requirements to Compete in the RWA Sector 

In response, Hoskinson indicated that he was referring to the scale of the RWA tokenization opportunity itself, which he estimates at around $10 trillion. According to him, competing in a market of that magnitude demands far more than incremental upgrades or half-baked technologies.

Instead, he stressed that projects seeking long-term dominance must deploy fully integrated, end-to-end strategies backed by credible partners and committed communities. 

In his view, ecosystems such as Cardano and the XRP community exhibit a level of authenticity and coordination that traditional finance initiatives cannot replicate, regardless of the approach they take.

Going after that 10 trillion dollar RWA market. There are no half measures or half technologies. You need an end-to-end strategy, great partners, and great communities.

You can’t fake Cardano or XRP Nation.

— Charles Hoskinson (@IOHK_Charles) December 26, 2025

Cardano and XRPL Efforts in the RWA Sector

His remarks suggest that legacy institutions entering Web3 without fully embracing its core principles will struggle to compete with blockchain-native networks.

The comments come amid intensifying discussions around real-world asset (RWA) tokenization, a sector that continues to gain momentum. While Ethereum currently leads many RWA initiatives, the XRP Ledger and Cardano have also attracted growing attention. 

Notably, a Messari report in August indicated that the combined market cap of RWAs on the XRP Ledger has reached approximately $131 million. Meanwhile, Cardano has also made measurable progress in space. 

In September, the network participated in a project organized by the London Stock Exchange Group (LSEG), which culminated in the launch of the MCM Fund I. Interestingly, Cardano aims to accelerate its efforts in the RWA sector with Midnight, which is expected to provide a privacy-preserving protocol for the tokenization of real-world assets.