Why Charles Hoskinson Believes Cardano and XRP Are Winning the Tokenization Game

Web3 native platforms are already operating at a scale that traditional finance is struggling to catch up with—at least according to Cardano founder Charles Hoskinson. In recent commentary, Hoskinson highlighted a stark reality: while legacy financial institutions are scrambling to rebuild infrastructure, decentralized networks built for Web3 from the ground up have already achieved what they’re still chasing.

The 100X Gap: Why Traditional Finance Can’t Keep Pace

Hoskinson’s core argument centers on a fundamental difference in design philosophy. Cardano, XRP, and similar platforms were architected for decentralization from day one. Traditional institutions, by contrast, are essentially retrofitting old systems to support tokenization—a far more complicated and less efficient approach.

“The comparison isn’t even close,” Hoskinson essentially said, describing Web3’s structural advantage as roughly “100X better” than what traditional finance is attempting. This isn’t just rhetoric; it reflects real infrastructure gaps. Legacy finance is playing catch-up in a race where the native Web3 players already have a massive head start.

The challenge goes beyond just technology. Traditional systems fundamentally misunderstand what drives Web3’s value proposition. They’re focused on incremental improvements to existing mechanisms, while truly Web3-native platforms capture something entirely different: genuine decentralization, composability, and capital efficiency.

$10 Trillion RWA Market: The Real Opportunity

Hoskinson’s optimism hinges on tokenization of real-world assets—a market he pegged at around $10 trillion. This includes everything from real estate to commodities. The RWA space represents enormous potential for blockchain networks that can handle the infrastructure demands.

Purpose-built systems like Cardano, XRP, and Midnight (Cardano’s privacy sidechain) are positioned to capture outsized value from this shift. The reasoning is straightforward: these networks have the technical foundations to support institutional-grade tokenization at scale. Traditional finance institutions rebuilding their systems simply don’t have that advantage.

Unlocking $100 Billion in XRP Liquidity

Beyond the RWA opportunity, Hoskinson identified another angle: the dormant capital sitting in XRP. He estimated over $100 billion worth of XRP that currently generates no yield. His vision involves bridging XRP liquidity into Cardano’s DeFi ecosystem—a move that could unlock returns for XRP holders while boosting Cardano’s Total Value Locked.

This approach represents a strategic pivot. Historically, there was tension between the Cardano and XRP communities. But Hoskinson’s recent messaging suggests a shift toward collaboration rather than rivalry. Instead of viewing XRP as competition, he’s advocating for ecosystem synergy: XRP brings liquidity, Cardano offers DeFi infrastructure, and users benefit from improved capital efficiency.

Combining RWA, DeFi, and Liquidity for Competitive Edge

Hoskinson outlined a more ambitious vision for integrating RWA tokenization with existing DeFi protocols and the liquidity of Bitcoin and XRP. This convergence, he argued, positions Cardano to compete with or potentially outpace networks like Solana in terms of utility and adoption.

The common thread: interoperability and strategic partnerships unlock value. Closed systems lose out. Open, composable networks that can tap into multiple sources of liquidity and asset classes will be the real winners in Web3’s next phase.

Charles Hoskinson’s thesis is clear—the tokenization race isn’t between Cardano and XRP versus traditional finance. It’s between networks that were built for this moment and institutions still learning to adapt. The outcome, he implied, was never really in doubt.