Plan Aims to Strengthen Cardano’s Native Stablecoin Ecosystem
Cardano founder Charles Hoskinson has proposed a bold initiative to inject $100 million worth of ADA from the Cardano Foundation’s treasury into the project’s growing DeFi ecosystem. The informal proposal includes diversifying treasury holdings by purchasing assets like Bitcoin and Cardano-native stablecoins such as USDM, USDA, and iUSD.
The plan, which is under review by the Cardano Foundation and key stakeholders, is intended to boost liquidity, adoption, and long-term sustainability for Cardano’s native decentralized finance projects.
“We as an ecosystem have to be willing to invest in ourselves,” said Hoskinson during a recent livestream.
Addressing Market Concerns: Price Impact and Liquidity
Some community members expressed concern that selling $100 million in ADA could cause significant downward pressure on the token’s price, which is currently trading around $0.63, far below its all-time high of $3.10.
However, Hoskinson dismissed the fears, arguing that Cardano’s daily trading volume and market liquidity are sufficient to handle such a transaction. He emphasized the use of time-weighted average price (TWAP) strategies and over-the-counter (OTC) deals to minimize any market disruption.
“Liquidity and exchange listings are not one of Cardano’s failings,” Hoskinson stated. “A structured sale over 30 to 90 days is completely manageable.”
A Strategic Push to Raise Stablecoin Adoption
The ultimate goal of the initiative is to increase the stablecoin-to-TVL (total value locked) ratio to 30–40%, aligning Cardano’s metrics with more mature DeFi ecosystems. Hoskinson noted that this would encourage exchange listings and external adoption of Cardano-native stablecoins, which are essential for DeFi growth.
A 40-page proposal document is reportedly in development, outlining the plan’s specifics and rationale.
Community Reaction: Cautious Optimism
While some ADA holders remain skeptical, others have praised the proposal. Cardano community members believe supporting homegrown, decentralized stablecoins is in line with the network’s core values of resilience, censorship resistance, and self-sustainability.
“If Charles really does have OTC buyers ready and avoids sell pressure, that changes the game,” said a Cardano memecoin developer.
Conclusion
Charles Hoskinson’s proposed $100 million ADA deployment could reshape Cardano’s DeFi landscape. If executed carefully, it may provide the liquidity and stablecoin foundation needed to compete with other blockchain ecosystems — while demonstrating the ecosystem’s commitment to self-investment.