$100M ADA Swap to Bitcoin and Stablecoins Suggested
In a bold move to strengthen Cardano’s decentralized finance (DeFi) ecosystem, Charles Hoskinson has proposed converting $100 million worth of ADA into Bitcoin (BTC) and stablecoins such as USDM and USDA. The plan aims to fuel on-chain liquidity and improve Cardano’s stablecoin issuance, a sector Hoskinson says is lagging behind major competitors.
“This would generate non-inflationary revenue and help build Cardano’s DeFi economy,” Hoskinson stated.
He emphasized that this conversion would not negatively affect ADA’s market, rejecting concerns about liquidity and volatility.
Boosting TVL and Stablecoin Ratio
Cardano currently holds a Total Value Locked (TVL) of $356 million, with just $31 million of stablecoins minted, according to DeFiLlama. That translates to roughly 10% of TVL in stablecoins, a ratio Hoskinson wants to increase to 30–40%.
By comparison, Solana boasts a much larger TVL of $9.8 billion and over $11 billion in stablecoins minted, highlighting the gap Cardano aims to close.
“The stablecoin situation is killing Cardano,” Hoskinson tweeted, underscoring the urgency of his proposal.
Tension with Cardano Foundation Leadership
The proposal appears to diverge from the philosophy of Cardano Foundation CEO Frederik Gregaard, who previously stated that TVL is not the primary metric for measuring adoption and success. Hoskinson’s remarks contrast this by positioning TVL and stablecoin utility as key growth drivers.
Hoskinson dismissed critics of the plan as “inexperienced,” asserting the market could handle a $100 million sale without disruption.
Strategic Goals: Liquidity, Revenue, and Adoption
The core objective behind the proposed ADA swap is to drive non-inflationary growth through more active stablecoin infrastructure, expanding Cardano’s DeFi utility and global competitiveness. Increased stablecoin circulation could attract developers, investors, and new protocols to build on the Cardano blockchain.
If successful, this strategy could reposition Cardano as a stronger force in the DeFi space by improving liquidity and increasing platform stickiness.