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Nidhi Kolhapur
Nidhi Kolhapur
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Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Jun 14, 2025 07:38 UTC
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Charles Hoskinson Proposes $100M ADA Treasury Shift to Boost Cardano DeFi
Charles Hoskinson proposes using $100M in ADA to boost stablecoin liquidity and bring Bitcoin-based DeFi to Cardano.
The plan aims to improve Cardano’s DeFi competitiveness by turning its $1.5B treasury into a yield-generating sovereign fund model.
In a recent YouTube video, Charles Hoskinson shared a major update on Cardano’s financial direction. He proposed using $100 million worth of ADA to strengthen stablecoin liquidity and bring Bitcoin into the Cardano DeFi ecosystem.
Low Stablecoin Liquidity Holds Cardano Back
He started off by pointing out that Cardano does not have enough stablecoin liquidity. There is only about $33 million in stablecoins supporting over $330 million in total value locked (TVL). In comparison, Ethereum and Solana have way more stablecoin support, and Cardano is falling behind.
“We have a treasury with about $1.5 billion of ADA, and yet there’s only about $30 million of stablecoins in the entire Cardano ecosystem,” he said. “That’s a problem.”
Hoskinson Proposes Bold Move-
To fix this, Hoskinson is proposing a bold move: take 5–10% of the $1.2 billion Cardano treasury and convert it into a mix of native stablecoins like USDA, USDM, iUSD, and even some Bitcoin to help start Bitcoin-based DeFi on Cardano.
The goal here is to generate yield from these assets like a sovereign wealth fund (like Norway or Abu Dhabi) and reinvest the profits back into ADA. This move could boost yields, improve liquidity, and speed up stablecoin adoption on Cardano. It may also help native stablecoins get listed on more exchanges and position Cardano as a strong player in the DeFi space.
Will This Hurt ADA?
Hoskinson believes that the $100 million move will not hurt ADA’s price. “Hundreds of millions of dollars of ADA change hands daily without visibly affecting the cryptocurrency’s price,” he said. He says that the market is strong and liquid enough to handle it, especially if done gradually using time-weighted average price algorithms and OTC trades.
Governance in Progress
Cardano is still figuring out how to handle governance. Charles wants the treasury fund plan ready for discussion at the Rare Evo Conference in August.
He has already written a 40-page document outlining the idea and shared it with internal teams. Further, the team will gather feedback from Cardano’s DeFi projects and prepare a full proposal, possibly by the conference.
Cardano Aims for Cross-Chain Growth and $1B Treasury
Hoskinson says Cardano’s treasury will eventually become multi-asset. As more chains connect to Cardano, their fees could also flow into the treasury, building a large, diverse portfolio to support cross-chain growth.
If the strategy works out, it could be a game-changer for Cardano. Stablecoin liquidity could rise to 33–40% of TVL, making the ecosystem much healthier. The treasury could grow to over $1 billion in stablecoins and Bitcoin. Cardano’s DeFi could become much more competitive on the global stage.
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FAQs
Cardano has only $33 million in stablecoins supporting over $330 million TVL, a low ratio (around 10%) compared to competitors like Ethereum and Solana, hindering its DeFi growth.
Hoskinson believes the $100 million conversion won’t significantly hurt ADA’s price, citing the market’s deep liquidity and plans for gradual execution using TWAP algorithms and OTC trades.
The goal is to generate yield like a sovereign wealth fund, reinvesting profits into ADA, boosting stablecoin liquidity to 33-40% of TVL, and making Cardano a stronger DeFi player.
Yes 
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