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.
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.”
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.
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.
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.
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.
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.
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