Banks Pick Cardano’s Midnight Over Ethereum and Solana
- Selective disclosure – hide transaction details from the public while proving compliance to regulators.
- Secure ordering – prevent bots from reordering pending transactions (MEV).
- Compliance tools – prove regulatory adherence without broadcasting secrets.
Public ledgers expose every move to anyone, so banks can’t simply post customer trades online. They must hide details from the public while still showing regulators proof when asked – that’s called selective disclosure.
Another problem is MEV, or maximal extractable value. Bots can see pending transactions and reorder them for profit before the trade settles. For a bank moving billions in one go, this hidden “tax” is unacceptable.
Midnight’s Solution
Midnight tackles these issues by offering programmable privacy.
- A hedge fund can buy a large amount of tokenized bonds on Midnight, and the counterparty can confirm the trade while regulators can audit it.
- Yet the rest of the market never sees the position.
Midnight launched its mainnet in March, partnering with Monument Bank to handle tokenized deposits. Validators include Google and BlockDaemon.
Underlying Technology
- Cardano gives Midnight a strong foundation.
- Network has run 100 % of the time since its start and uses proof‑of‑stake.
Layer Zero connects to over 80 blockchains.
Additional services: USDX for stablecoin liquidity and Pyth for reliable data feeds round out the ecosystem.
This integrated setup contrasts with Ethereum and Solana, which are still trying to add privacy layers on top. Cardano and Midnight deliver the necessary privacy from day one, making them more appealing to institutions.
