Cardano's Hydra protocol is positioning itself as a transformative real-time settlement layer for traditional finance, potentially replacing conventional financial intermediaries. The protocol facilitates immediate final settlements between parties within a Hydra 'hub,' effectively eliminating operational delays and overnight risks. Built on Cardano's stable Layer 1, which has been operational for eight years, Hydra ensures settlement finality and offers programmable, transparent rules for automated compliance. Analysts believe this innovation could streamline institutional workflows and significantly reduce costs, marking a fundamental shift in financial infrastructure.