Cardano Founder: Banks and Insurers Consider RWA on Midnight Chain
Cardano founder Charles Hoskinson has revealed that discussions are underway to bring major banks and insurance companies onto the Midnight blockchain, a Cardano partner chain, to integrate tokenized real-world assets (RWA).
The comments, made during an interview with David Gokhshtein on the Breakdown podcast, highlight Cardano’s growing ambition to position Midnight as a compliant infrastructure layer for institutional finance. The focus is on tokenized deposits, yield generation and privacy-focused blockchain applications.
Institutional interest in tokenized deposits
Hoskinson pointed to a proposed £250 million ($335.97 million) token deposit initiative from Monument Bank as evidence of growing institutional confidence. He said discussions are already underway with other banks interested in joining the effort.
Tokenized deposits are seen by many as the next phase of blockchain adoption in traditional finance. Unlike stablecoins, tokenized bank deposits remain connected to regulated institutions and could improve the efficiency, transparency and interoperability of settlements between financial systems. Hoskinson’s remarks suggest that the Cardano ecosystem is positioning itself in this emerging sector.
Insurance companies explore yield opportunities
Beyond the banking sector, Hoskinson revealed that several insurance companies were considering placing RWAs at midnight to generate yield. This could significantly expand the network’s role in traditional finance.
Members of the Cardano community believe that participation from insurers could be substantial. Insurers manage large pools of capital and often seek stable, return-generating investments. If they adopt Midnight as their blockchain infrastructure for tokenized RWAs, the network could potentially host billions of dollars in assets.
Upcoming hybrid applications
Hoskinson also revealed that the first generation of Cardano-Midnight hybrid applications could launch within six months. These will first roll out to Cardano and then move to midnight. The hybrid model would combine Cardano’s existing infrastructure with Midnight’s privacy-focused capabilities, potentially strengthening Cardano’s institutional position.
Since its introduction, Midnight has attracted partnerships with Google and AlphaTON Capital. Today, Hoskinson and the Midnight Foundation are exploring opportunities to integrate large financial institutions to tokenize real-world assets directly on the blockchain.
