Charles Hoskinson, co-founder of Cardano, has floated the idea of converting $100 million worth of ADA into stablecoins and Bitcoin in a move aimed at strengthening Cardano’s growing DeFi ecosystem.
Speaking during a recent YouTube livestream, Hoskinson suggested that diversifying the treasury would help close the gap between Cardano and its larger competitors when it comes to on-chain liquidity and stablecoin usage.
Why Stablecoins Matter to DeFi Growth
Stablecoins are essential to modern decentralized finance because they act as reliable collateral, payment mediums, and trading pairs. Ethereum and Solana dominate DeFi largely because of their deep liquidity pools, most of which are backed by stablecoins like USDC and USDT.
Cardano, by comparison, has been slower to build out its stablecoin infrastructure. According to data from DefiLlama , Cardano currently has about $31 million worth of stablecoins issued on-chain, with a total DeFi TVL of around $356 million. That ratio works out to less than 10% stablecoins-to-TVL, far lower than Ethereum’s 190% and Solana’s 110%.
Hoskinson argued that by increasing Cardano’s stablecoin presence and adding Bitcoin to the mix, the ecosystem could better support future DeFi products. His target is to get that ratio up to 33% to 40%, which would mark a major improvement over current levels.
Addressing the Critics
Predictably, not everyone agreed with the plan. Some community members expressed concern that a $100 million ADA sale could negatively affect the token’s price.
Hoskinson dismissed those worries during his livestream, calling the skeptics “inexperienced.”
A Growing Trend of Treasury Diversification?
Cardano isn’t the only blockchain project thinking about how divonomies grow more complex, it’s becoming increasingly common for DAOs, foundations, and layer 1 networks to build diversified treasuries including Bitcoin reserves to support their ecosystems.
For Cardano, bringing in more stablecoins and Bitcoin could help position it better against DeFi leaders like Ethereum and Solana. With growing competition for developers and liquidity, these moves could be an important step toward boosting participation on the network.
Final Thought: A Strategic Move or a Risky Bet?
Diversifying Cardano’s treasury into stablecoins and Bitcoin is about building stronger foundations for a DeFi economy that can compete globally.
Whether or not Hoskinson’s $100 million idea moves forward, one thing is clear: It’s a clear signal that crypto projects are shifting toward long-term thinking, focusing on building ecosystems designed to grow and sustain over time.
