$ADA
Hoskinson Proposes Swapping $100M in ADA for Bitcoin, Stablecoins to Boost Cardano DeFi
Cardano founder Charles Hoskinson has proposed converting $100 million worth of ADA from the project's treasury into Bitcoin and stablecoins to strengthen liquidity and expand Cardano’s DeFi ecosystem.
In a recent livestream, Hoskinson suggested allocating the funds into stablecoins like USDM, USDA, and IUSD, alongside Bitcoin, to improve Cardano's low stablecoin-to-DeFi ratio—currently under 10%. By comparison, Ethereum and Solana have ratios of 190% and 110%, respectively.
He argued this move could generate non-inflationary revenue and stabilize the ecosystem, noting Cardano’s $1.2 billion treasury could safely allocate 5–10% without impacting ADA’s price. Addressing concerns, he claimed a $100M sale could be absorbed over 30–90 days through TWAPs and OTC deals.
Hoskinson also floated creating a decentralized sovereign wealth fund with elected governance, using yield to potentially buy back ADA. Despite the announcement, ADA fell 7% to $0.6377 amid broader market turmoil linked to geopolitical tensions.
