Cardano Founder Proposes Treasury Allocation to Enhance Stablecoin Presence

According to Foresight News, Cardano founder Charles Hoskinson has proposed using 100 million ADA from the treasury to convert to Bitcoin and stablecoins, including USDM and USDA. This proposal aims to increase the share of stablecoins in the Cardano ecosystem and its decentralized finance (DeFi) sector.

Hoskinson assures that this move will not negatively impact the ADA market and has dismissed concerns about liquidity. Currently, stablecoins on the Cardano blockchain account for only about 10% of the total value locked (TVL), much lower than the Solana stablecoin ecosystem.

This proposal contrasts with the views of Cardano Foundation CEO Frederik Gregaard, who previously emphasized that TVL is not an important metric for assessing the success of the ecosystem.