Key Takeaways:
Cardano founder Charles Hoskinson has launched a new privacy-focused blockchain, Midnight, securing a $250 million tokenized deposit deal with UK bank Monument and partnerships with Google Cloud, MoneyGram, and Vodafone.
"There really isn’t a bespoke chain for that," Hoskinson said, describing the "Web 2.5 space" that Midnight targets, which combines traditional regulated business with the world of crypto. He said the platform allows compliance officers to define asset interaction rules to remain compliant with regulations.
The agreement with Monument bank, which provides $250 million in tokenized deposits, creates a pathway for similar deals with financial institutions in the U.S. and Europe. Midnight uses a dual-token model: a public, tradable governance token called Knight, and a private, non-transferable utility token called Dust, which is consumed in transactions. This structure is designed to separate speculative interests from user transaction costs.
The launch represents a significant step for privacy-centric finance, creating a regulation-friendly platform for AI agents and offering new yield opportunities for assets like Bitcoin. For the Cardano ecosystem, Midnight provides a new income stream for validators who will secure both chains, and its native asset was the first Cardano-based token to be listed on Binance spot following a major airdrop.
Hoskinson envisions Midnight as a programmable privacy system built for a future where AI agents manage crypto transactions on behalf of users. "Midnight is an agentic native system," he explained, using zero-knowledge proofs to let users prove facts without revealing the underlying sensitive data.
This technology extends to creating new forms of decentralized finance. The platform will allow Bitcoin holders to earn yield through a private and compliant mechanism. Users can deposit Bitcoin, which is then used across various lending protocols to generate yield. The returns are used to purchase more Bitcoin for the user, creating a compounding effect. "You push a button & and the suddenly your Bitcoin starts paying yield like staking," Hoskinson stated in an interview.
Midnight is designed to directly benefit its partner chain, Cardano (CRYPTO: ADA). The new blockchain's security will be handled by existing Cardano stake pool validators, allowing them to earn revenue from two sources simultaneously.
The project has already engaged the community through its "Glacier Drop" airdrop, which distributed tokens across eight ecosystems, with the largest allocation going to Cardano. According to data from the announcement, Cardano's ADA token was trading at $0.2519, up 0.80% in the 24 hours following the news.
This article is for informational purposes only and does not constitute investment advice.
