Cardano is set to enhance its blockchain interoperability with the integration of Bitcoin and XRP DeFi features through its Midnight protocol. Founder Charles Hoskinson announced that the protocol will enable privacy-focused interactions between blockchains, using zero-knowledge cryptography to protect transaction data. This development aims to facilitate decentralized finance activities like lending and yield farming without exposing user transaction histories. The Midnight protocol is positioned as a "fourth-generation" cryptocurrency solution, offering cross-chain infrastructure that could significantly impact sectors where privacy is crucial. Hoskinson also expressed interest in collaborating with Ripple to further Cardano's DeFi capabilities, potentially increasing liquidity and participation in decentralized financial services. This integration marks a major step in Cardano's evolution, aligning with its goal to bridge blockchain ecosystems and enhance privacy.