 
 
Cardano founder Charles Hoskinson expressed excitement about RealFi, calling it “the most exciting thing” about blockchain’s future.
In a recent post on X, Hoskinson highlighted that RealFi’s returns are generated through microfinance, which can be automatically converted into ADA, Bitcoin, or other crypto assets. This off-chain conversion, he explained, creates a constant stream of buy demand, potentially strengthening Cardano’s long-term ecosystem.
RealFi (Real Finance) is Cardano’s attempt to link blockchain-based finance with real-world economic activity. DeFi opened financial access through smart contracts and decentralized lending. Still, its growth primarily benefited those already within the crypto ecosystem, such as traders, developers, and investors with capital to spare.
On the other hand, RealFi focuses on real people in emerging economies, offering tools such as digital identity, microloans, and credit scoring to bridge the gap between cryptocurrency liquidity and real-world needs.
Hoskinson first introduced the concept in 2021, as a way to “serve real people real finance.” He argued that while DeFi revolutionized access to capital, it failed to address the “financial exclusion” faced by billions without reliable banking access.
 
Cardano’s RealFi vision tackles this through systems like Atala PRISM, which ties identity to verifiable financial data, such as bill payments or phone usage, allowing lenders to assess creditworthiness even in areas without traditional credit systems.
RealFi is also deeply intertwined with Cardano’s partnerships in Africa. Through collaborations with the Ethiopian Ministry of Education, World Mobile in Tanzania, and Pezesha in Kenya, Cardano is utilizing blockchain technology to create verifiable identities, enhance connectivity, and unlock financing opportunities for small businesses.
These partnerships serve as RealFi’s testing ground, combining crypto capital with real-world lending models that already have default rates as low as 2%.
RealFi also represents a strategic evolution for Cardano’s DeFi ecosystem. By connecting crypto holders to microfinance opportunities, RealFi introduces a new class of yield generation tied to real economic output, not just trading activity or on-chain speculation.
