Cardano Founder: Banks, Insurers Eye RWAs on Midnight Chain

Cardano Founder: Banks, Insurers Eye RWAs 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 partner chain of Cardano, to integrate tokenized real-world assets (RWAs).

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) tokenized deposit initiative from Monument Bank as evidence of increasing institutional confidence. He said discussions are already ongoing with additional 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 settlement efficiency, transparency, and interoperability across financial systems. Hoskinson’s remarks suggest the Cardano ecosystem is positioning itself in this emerging sector.

Insurance Firms Exploring Yield Opportunities

Beyond banking, Hoskinson disclosed that several insurance companies are evaluating placing RWAs on Midnight to generate yield. This could significantly expand the network’s role in traditional finance.

Members of the Cardano community believe insurer involvement could be substantial. Insurers manage large capital pools and often seek stable yield-generating investments. If they adopt Midnight as blockchain infrastructure for tokenized RWAs, the network could eventually host billions of dollars in assets.

Hybrid Applications Coming Soon

Hoskinson also revealed that the first generation of hybrid Cardano-Midnight applications could launch within six months. These will first deploy on Cardano, then transition 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. Now, Hoskinson and the Midnight Foundation are exploring opportunities to onboard major financial institutions to tokenize real-world assets directly on the blockchain.

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