Charles Hoskinson called Bitcoin and XRP "the sleeping giants of decentralized finance"
Charles Hoskinson Names Bitcoin and XRP as the "Sleeping Giants" of DeFi
Hoskinson's Bold Take at Token2049
At the Token2049 conference in Singapore, Cardano founder Charles Hoskinson delivered a candid assessment of the decentralized finance (DeFi) sector—and it wasn't all self-congratulatory. Speaking with Crypto Banter's Ran Neuner, Hoskinson described Bitcoin and XRP as "sleeping giants" within the DeFi ecosystem, arguing that both hold immense untapped potential despite being overshadowed by flashier blockchain networks. For Hoskinson, the DeFi race isn't just about total value locked (TVL) metrics—it's about the long-term sustainability and governance philosophy behind each network.
Cardano's Struggles and Strengths in DeFi
Hoskinson admitted that Cardano has fallen behind rivals like Solana in raw DeFi metrics. The network's total value locked remains under $1 billion, and its stablecoin adoption trails far behind competitors. Yet, he pointed to the platform's strengths in decentralization and participation: with 1.3 million staking wallets, Cardano boasts one of the most distributed governance systems in the entire crypto landscape. To Hoskinson, that foundation—rather than speculation—is what will make Cardano thrive in the years ahead.
XRP's Untapped DeFi Potential
Hoskinson's comments on XRP turned heads. He highlighted that nearly $100 billion worth of XRP is sitting idle—earning no yield and operating without a native DeFi ecosystem. "There's an entire market's worth of capital that could be generating value but isn't," he said. By merging XRP liquidity with tokenized real-world assets (RWAs) and yield-bearing instruments, Hoskinson believes the DeFi industry could attract massive capital inflows. It's a wake-up call to developers and investors alike: XRP may be dormant, but it's far from dead.
Bitcoin's Overlooked DeFi Role
While Bitcoin often gets pegged as "digital gold," Hoskinson argued it has far greater DeFi potential than most give it credit for. Despite a market capitalization north of $2.4 trillion, Bitcoin remains underutilized in decentralized finance. Hoskinson explained that both Bitcoin and Cardano share a similar Unspent Transaction Output (UTXO) model, making it technically possible to run Cardano smart contracts on Bitcoin. "The code can compile and execute across both systems," he noted, suggesting that the world's first cryptocurrency might yet become a foundational pillar of decentralized finance.
Building the Infrastructure: Cardano's Next Moves
Cardano isn't standing still. Hoskinson revealed that its privacy-focused sidechain, Midnight, has already secured over 100 partnerships—including with major players like Brave, Blockchain.com, and Bitcoin.com. With more than 200 engineers actively building within the Cardano ecosystem, he envisions a DeFi landscape where interoperability, privacy, and security work hand in hand. The combination of Cardano's robust architecture and Bitcoin's liquidity could create what Hoskinson calls a "multi-chain DeFi revolution."
The Promise of Tokenized Real-World Assets (RWA)
A recurring theme in Hoskinson's vision is tokenization. He believes that integrating real-world assets into DeFi—everything from real estate and bonds to commodities—will drive the next major wave of cryptocurrency adoption. "DeFi becomes meaningful when it connects to tangible value," he said. By bridging digital networks like Cardano, Bitcoin, and XRP with regulated financial assets, crypto could evolve from a speculative playground into a global infrastructure for capital formation.
Regulation and the Next Five Years
Hoskinson also underscored the importance of regulatory clarity in the United States. He argued that sound policy—not speculative hype—will determine which projects succeed long-term. Favorable regulation, coupled with tokenization and smart contract interoperability, could usher in what he calls a "second era" of DeFi growth. Over the next five years, he expects to see a surge of institutional and retail participation once governments establish clearer frameworks for decentralized platforms.
Hoskinson's Closing Message: DeFi's Next Chapter Has Just Begun
The Cardano founder's remarks offered a blend of humility and foresight. While acknowledging his own network's shortcomings, he made it clear that the future of decentralized finance will depend on cooperation among major blockchain players—not rivalry. Bitcoin and XRP, he insisted, are sleeping giants that, once awakened, could redefine how DeFi operates on a global scale. "This isn't about who wins," Hoskinson said, "it's about who builds systems that last."
