Charles Hoskinson Proposes $100M ADA Treasury Shift to Supercharge Cardano DeFi

In a bold move to enhance Cardano’s DeFi ecosystem, Charles Hoskinson has proposed diverting $100 million worth of ADA from the blockchain’s $1.5 billion treasury. His goal? Strengthen stablecoin liquidity and integrate Bitcoin-backed DeFi on Cardano.

Hoskinson points out that Cardano has only $33 million in stablecoin liquidity despite having over $330 million in TVL, which puts it far behind Ethereum and Solana. To fix this, he suggests converting 5–10% of the treasury into a mix of native stablecoins—such as USDA, USDM, and iUSD—and possibly Bitcoin.

The strategy involves modeling the treasury like a sovereign wealth fund that generates yield, which can be reinvested into ADA. This could increase stablecoin adoption, boost exchange listings, and improve the entire DeFi landscape for Cardano.

Hoskinson insists this plan wouldn’t negatively impact ADA’s price due to the market’s liquidity. The conversion would be gradual, using time-weighted average price (TWAP) algorithms and OTC trades.

A formal proposal may be presented at the Rare Evo Conference in August. If approved, the strategy could eventually grow the treasury to $1B in stablecoins and Bitcoin—turning Cardano into a DeFi powerhouse.