⚠️ATTENTION: “$100M ADA to BTC? Charles Hoskinson’s Plan”
Cardano co-founder Charles Hoskinson has introduced a bold proposal to convert $100 million worth of ADA from the project’s treasury into Bitcoin and stablecoins. The move is intended to boost on-chain liquidity and catalyze the growth of Cardano’s decentralized finance (DeFi) ecosystem.
In a recent livestream, Hoskinson argued that diversifying treasury assets is a necessary step toward solving a major imbalance in Cardano’s DeFi landscape.
• Currently, Cardano holds around $33 million in stablecoins against $330 million in Total Value Locked (TVL), resulting in a stablecoin-to-TVL ratio of under 10%.
• In contrast, Ethereum's ratio is approximately 190%, while Solana stands at 110%. This places Cardano significantly behind in DeFi readiness and capital efficiency.
To address this gap, Hoskinson proposed that a 5–10% allocation of Cardano’s $1.2 billion treasury (equivalent to 1.7 billion ADA) could be safely redirected into Bitcoin and stablecoins, without causing major market disruption.
• He stressed that Cardano’s trading volume is strong enough to absorb the conversion.
Beyond improving liquidity, the proposal includes plans to integrate yield-generating financial instruments and introduce a formal governance structure, possibly managed by an elected board overseeing the treasury as a sovereign wealth fund.
Hoskinson mentioned that formal deliberations could begin during the upcoming Rare Evo event, with the possibility of implementation before the end of the year—especially as the 39 budget withdrawal requests are processed.
This marks a strategic pivot for Cardano, signaling its intent to become more competitive within the DeFi landscape by leveraging both stable and non-native crypto assets for ecosystem development.
