Inside Hoskinson’s Plan to Unlock $20 Trillion in Crypto Assets with Cardano’s Midnight Protocol

Charles Hoskinson, the CEO of IOHK, is setting his sights on helping unlock a staggering $20 trillion in crypto assets through the launch of the Midnight protocol. In a recent interview on the Blockster podcast, Hoskinson shared his ambitious vision for the Cardano ecosystem, highlighting how the privacy-focused protocol could tap into a massive pool of value that has been sidelined due to restrictive regulatory barriers. Notably, Midnight is designed to provide privacy as a service through the use of zero-knowledge proofs (ZKPs), which allow transactions to occur without revealing sensitive data. The protocol addresses the growing demand for privacy in blockchain networks, where concerns over privacy and regulatory compliance are becoming increasingly prominent. “Privacy is the biggest pie ever seen in the history of any business endeavor,” Hoskinson stated, emphasizing the vast, untapped potential of assets that require privacy protections. Another major aspect of the Midnight protocol’s innovation is its ability to facilitate interoperability across multiple blockchains. According to the crypto mogul, the protocol will create a “meta-chain,” enabling various cryptocurrencies, including Cardano, Ethereum, XRP , and Solana, to coexist and transact seamlessly. He further noted that this multi-resource consensus is crucial for fostering a truly decentralized and privacy-oriented ecosystem. “It looks like it’s a layer two to everybody,” he explained, noting that Midnight’s privacy layer will appear as an extension of any major blockchain while maintaining full cross-chain compatibility. Hoskinson also discussed the importance of the tokenomics model behind Midnight. The protocol will utilize a dual-token structure, balancing deflationary assets for governance with inflationary tokens for gas fees. This approach aims to create stability and predictability in transaction costs, a crucial factor for businesses and users alike. That said, by focusing on privacy, interoperability, and a sustainable economic model, Cardano’s Midnight protocol could attract major institutional players. Hoskinson believes this will increase the Cardano ecosystem’s value and catalyze broader adoption of blockchain technology, ultimately unlocking trillions in previously inaccessible assets. “We don’t have real world assets in crypto yet because the private side is too precious and too regulated to be able to bring into the cryptocurrency industry.” He added. “[However], once you have privacy you can now bring it in and that’s 20 trillion dollars of assets. That is the biggest ever seen in the history of any business.” Looking ahead, Hoskinson emphasized that in 2025 , the focus will shift to enhancing interoperability and solidifying Midnight’s privacy features as a cornerstone of the crypto world. He also highlighted the importance of fostering collaboration among blockchain projects, stating, “We’re entering an era where common enemies are becoming friends.”