XRP: Cardano Founder Reveals Crypto Potential

What to Know:

• Charles Hoskinson believes XRP and Midnight outperform legacy finance’s Canton Network in real-world asset (RWA) tokenization.
• Traditional finance institutions are partnering on the Canton Network to tokenize assets using blockchain.
• Hoskinson’s comments highlight the competition and differing approaches in the RWA sector.

The real-world asset (RWA) tokenization space is heating up, with traditional financial institutions and blockchain-native projects vying for dominance. Cardano founder Charles Hoskinson recently weighed in, asserting that efforts like the Canton Network, backed by legacy finance, fall short of the capabilities offered by XRP and Cardano’s Midnight platform. His comments underscore the fundamental differences in approach and ambition within the rapidly evolving RWA landscape.

Hoskinson’s Critique of Legacy Finance

Hoskinson’s central argument is that traditional finance is essentially trying to replicate what XRP Ledger (XRPL) and Midnight already achieve, but at a significantly lower level. He boldly claims a “100x” advantage for XRPL and Midnight, suggesting that legacy institutions underestimate the transformative potential of Web3. This isn’t just about technology; it’s about the scale of the opportunity and the need for fully integrated strategies, not incremental upgrades.

The Scale of the RWA Opportunity

When questioned about the “100x” claim, Hoskinson clarified that he was referring to the sheer size of the RWA market, estimated at a staggering $10 trillion. To compete effectively, he argues, requires more than just technological prowess. It demands comprehensive, end-to-end solutions, strong partnerships, and vibrant communities. He believes that ecosystems like Cardano and the XRP community possess an authenticity and coordinated effort that traditional finance initiatives struggle to replicate.

XRPL and Cardano’s RWA Initiatives

While Ethereum currently leads in RWA tokenization, XRP Ledger and Cardano are steadily gaining traction. A Messari report indicated that the combined market capitalization of RWAs on XRPL has reached approximately $131 million. Cardano has also made progress, participating in a project with the London Stock Exchange Group (LSEG) that led to the launch of the MCM Fund I. Moreover, Cardano aims to leverage its Midnight protocol to accelerate RWA tokenization while preserving privacy.

The Importance of Community and Authenticity

Hoskinson’s remarks touch on a critical aspect of Web3: the power of community. He suggests that traditional finance institutions entering the space without fully embracing its core principles, particularly community engagement and decentralized governance, will face an uphill battle. This sentiment resonates with the broader crypto ethos of building open, permissionless systems driven by collective participation.

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

Navigating the RWA Landscape

The RWA sector is poised for significant growth, but the path forward remains uncertain. While traditional finance brings established infrastructure and regulatory expertise, blockchain-native projects offer innovation, community-driven development, and a fundamentally different approach to asset ownership and transfer. The ultimate winners will likely be those who can effectively bridge the gap between these two worlds, combining the best of both to unlock the full potential of RWA tokenization.

The debate between Hoskinson and the legacy finance-backed Canton Network highlights the philosophical and practical differences in approaching real-world asset tokenization. As the RWA space matures, the success of these competing approaches will depend on their ability to deliver tangible benefits to both institutions and individual users, fostering a more efficient and accessible financial ecosystem.

Related: XRP Signals Potential Price Target

Source: Original article