Charles Hoskinson Proposes Converting $100M in ADA to Stablecoins and Bitcoin to Boost Cardano DeFi
Cardano co-founder Charles Hoskinson has proposed allocating $100 million worth of ADA from the project’s treasury into a mix of stablecoins and Bitcoin to bolster liquidity and accelerate the expansion of Cardano’s decentralized finance (DeFi) ecosystem.
Speaking in a recent YouTube livestream, Hoskinson outlined the strategic shift as a way to improve Cardano’s stablecoin-to-DeFi ratio, which currently lags behind major blockchain competitors. Cardano presently holds approximately $33 million in stablecoins against a total value locked (TVL) of $330 million, reflecting a ratio below 10%. In contrast, Ethereum and Solana boast much stronger ratios at 190% and 110%, respectively.
“What I’d like to see,” Hoskinson explained, “is whether we could take about $100 million worth of ADA in the treasury and convert it into a blend of stablecoins native to Cardano—such as USDM, USDA, and ADA-backed synthetics like iUSD—as well as allocate some of it to Bitcoin to help seed Bitcoin DeFi on Cardano.”
The goal, he said, is to bring Cardano’s stablecoin-to-TVL ratio closer to a healthy DeFi benchmark of 33–40%, thereby creating a more robust and liquid ecosystem.
Hoskinson noted that Cardano’s treasury—currently valued at around $1.2 billion (1.7 billion ADA)—could safely allocate 5–10% toward this initiative without significant risk. To ease concerns about market volatility, he emphasized the market’s ability to absorb such a transaction.
“Hundreds of millions of dollars of ADA are traded daily,” he said. “Using tools like time-weighted average prices (TWAPs), over-the-counter (OTC) desks, and other mechanisms, we could manage a $100 million conversion over 30 to 90 days without causing notable price disruption.”
The proposal also includes the potential creation of yield-generating instruments and a governance framework, possibly led by an elected board, to oversee the resulting sovereign wealth fund.
Formal discussions around the proposal may begin as early as the upcoming Rare Evo conference. If approved, implementation could follow the conclusion of the current budget cycle, after the 39 outstanding withdrawal requests, with execution likely before the end of the year.
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