Cardano (ADA) Reaches Out to Ripple in Search of Cooperation Partners

The stablecoin RLUSD should be integrated into the ADA ecosystem, said Cardano founder Hoskinson.

Cardano (ADA) is reaching out to Ripple in search of cooperation partners. The stablecoin RLUSD should be integrated into the ADA ecosystem, said Cardano founder Hoskinson. Is that realistic?

The Cardano (ADA) ecosystem lacks a stablecoin, and an attempt at an algorithmic solution called DJED failed due to price fluctuations

Now, in a YouTube round, Cardano founder Charles Hoskinson is raising hopes that the still young Ripple stablecoin RLUSD will be integrated. Hoskinson said that talks have already been held with Ripple CEO Brad Garlinghouse and his technical director David Schwartz. There is a “strong possibility” that RLUSD will come to Cardano.

According to Hoskinson, Ripple’s management has signaled to Cardano to wait until March. By then, Ripple should have concluded matters with the New York Financial Services Authority and be free to expand the presence of RLUSD, according to Hoskinson. What is striking, however, is that neither Garlinghouse nor Schwartz confirmed Ripple’s talks with Cardano and Hoskinson. RLUSD made its debut shortly before Christmas and is currently available in versions for the XRP network and Ethereum (ETH). With a market capitalization of now over 100 million US dollars, RLUSD has not yet achieved a real breakthrough.

Hoskinson has had many skirmishes with the Ripple community in the past. His courting of Ripple and RLUSD is therefore surprising. In terms of content, such a cooperation would have its charm, because the Ripple stablecoin is designed in a classic way and is based on cash reserves that fully secure the value of RLUSD. A trustworthy stablecoin in the Cardano ecosystem could trigger growth in areas such as decentralized finance (DeFi). But it is not clear whether Ripple has any real interest in joining forces with Cardano for RLUSD.

Conclusion: Cardano and Ripple – can it work?

Critics are also surprised that Hoskinson continues to act as the strong man at Cardano and thinks he can personally conclude a deal with Ripple. Only a few days ago, responsibility for ADA was transferred to investors, and Cardano activated self-administration with the Plomin upgrade.

Far-reaching strategic decisions such as an integration of RLUSD would therefore have to be confirmed in a referendum; Hoskinson can no longer order them on his own. But the 37-year-old Hoskinson is known for his ego, which in turn is likely to make Ripple’s management ambivalent. The information available so far on an RLUSD integration at Cardano leaves many questions unanswered, which could also indicate that Hoskinson is rushing ahead without consulting Ripple.

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