Ripple CTO David Schwartz Responds to Cardano’s Midnight Blockchain Launch

TLDR

Table of Contents

Ripple CTO David Schwartz acknowledged Midnight, Cardano’s new privacy blockchain.
Midnight aims to protect data with privacy-first features using zero-knowledge proofs.
Ripple and Cardano face pressure to demonstrate real-world utility, says Mike Novogratz.
Midnight’s privacy-first blockchain could compete with XRP’s compliance-focused model.

Ripple CTO David Schwartz has finally reacted to Cardano’s Midnight blockchain, which has been gaining attention for its privacy-first features. As Cardano’s Midnight enters the conversation, it presents itself as a serious contender in the blockchain space with a focus on secure data handling. This development comes at a time when industry figures like Mike Novogratz are urging both XRP and Cardano to prove real-world utility and long-term value.

Ripple CTO Acknowledges Midnight: Cardano’s Privacy Blockchain

In a recent development, Ripple’s Chief Technology Officer (CTO), David Schwartz, responded to Cardano’s new privacy-focused blockchain, Midnight. This was the first time Schwartz publicly acknowledged the launch of Midnight, marking a notable moment for Cardano’s blockchain technology. Although his response was brief, it highlighted an interesting shift in the conversation surrounding privacy blockchains and their real-world applications.

The comment came two weeks after the official launch of Midnight, which was designed to address growing concerns over data privacy in blockchain systems. Midnight uses zero-knowledge proofs to create a dual-state ledger, separating public and private data in a secure manner. This setup ensures that certain information stays protected while maintaining transparency where necessary.

Cardano ADA founder Charles Hoskinson said that Midnight and the $XRP Ledger are already operating and performing at 100x the scale 🙌 pic.twitter.com/i0k7f1BV16
— XRPcryptowolf (@XRPcryptowolf) December 28, 2025

Schwartz’s acknowledgment of Midnight, although understated, has significant relevance in the context of privacy and utility in blockchain networks. His statement placed Midnight on the radar of XRP holders and blockchain enthusiasts alike, prompting discussions about its potential impact on the current landscape.

Midnight’s Privacy Features and XRP’s Focus on Utility

Midnight’s key feature is its privacy-first approach, a quality that aims to protect user and transaction data through a combination of zero-knowledge proofs and a public-private dual-state ledger. The goal is to enhance privacy while ensuring transparency when necessary, catering to businesses that need to disclose certain information without compromising confidentiality.

This feature aligns with the core values of the XRP Ledger, which has always emphasized utility and compliance. Both blockchains aim to offer real-world applications for enterprises and financial institutions. However, Midnight’s approach to privacy marks a clear divergence from XRP’s focus on open transparency.

The launch of Midnight also highlights a trend toward privacy in blockchain technology, with businesses and users becoming increasingly concerned about data exposure. While XRP offers transparent public ledgers that enable fast and efficient transactions, Midnight presents an alternative that seeks to balance privacy with regulatory compliance. The conversation between these two blockchains has now evolved, with Midnight offering a new perspective on how privacy can be integrated into the blockchain ecosystem.

Mike Novogratz’s Warning: Real-World Use and Profitability

Mike Novogratz, a well-known investor in the cryptocurrency space, recently raised concerns about the future relevance of XRP and Cardano unless they demonstrate measurable utility in the next few years. Novogratz stressed that the market is increasingly shifting toward “business tokens” that show quantifiable value and profitability.

This warning underscores the importance of practical use cases and utility in the blockchain world, as investors and users are becoming more focused on the long-term value of blockchain networks. Both XRP and Cardano face pressure to prove that their platforms can deliver real-world benefits for businesses and users, beyond just speculative investments.

The rise of Midnight presents an interesting challenge in this context, as it targets a specific need—privacy—while maintaining a business-oriented approach. If Midnight can deliver on its promises of secure data handling and compliance, it could force XRP and Cardano to prove that their solutions can provide comparable or better benefits in the evolving market.

The Ripple and Cardano Debate Intensifies

With the introduction of Midnight, the debate between Ripple and Cardano enthusiasts has grown more complex. While XRP continues to focus on its utility in cross-border payments and financial services, Cardano is positioning Midnight as a viable privacy solution for businesses that require secure, verifiable data transactions.

Ripple’s David Schwartz has been at the forefront of these discussions, highlighting the need for utility in blockchain systems. However, the launch of Midnight and its privacy-first design may lead to new conversations about what constitutes the most valuable blockchain solution in the coming years. Both projects are under pressure to innovate and adapt to the changing needs of the global market, ensuring they can maintain relevance and provide tangible benefits.