Cardano founder Charles Hoskinson has proposed converting $100 million worth of ADA from the network’s treasury into USDM, a native Cardano-backed stablecoin. According to him, this move is aimed at injecting fresh liquidity into the ecosystem and jumpstarting decentralized finance activity.
The Cardano treasury currently holds around 1.7 billion ADA. From this reserve, Hoskinson suggests allocating 100 million ADA to establish deeper stablecoin liquidity and support financial infrastructure development within the network.
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He stated that such a strategy could improve market-making, increase trading volume, and raise the total value locked (TVL) in Cardano’s DeFi platforms. Hoskinson made these comments during a live AMA session, emphasizing the need to take bold steps to unlock the ecosystem’s full potential.
He further proposed a financial model that would generate 5 to 10 percent annual returns from the deployed stablecoin. These returns would then be used to repurchase ADA and replenish the treasury, creating a cycle of sustainable growth.
Hoskinson highlighted the importance of ecosystem tools like Intersect, a governance organization designed to manage treasury-funded initiatives. He expressed frustration at what he described as community hesitation and a lack of execution on opportunities that could elevate Cardano’s DeFi position.
Liquidity Plan Targets Institutional Capital and Long-Term Growth
Hoskinson believes this liquidity injection could attract interest from prominent venture capital firms such as a16z and Pantera Capital. He noted that deal sizes from these firms could range between $25 million and $45 million, bringing in additional capital and credibility.
According to Hoskinson, profits generated from venture capital participation can be funnelled back into the Cardano treasury to enhance its financial base. He added that the network already possesses the infrastructure needed to execute this strategy and should move swiftly to capitalize on it.
He also pointed to missed opportunities, such as failing to onboard USDC or secure large-scale partnerships. According to him, these examples show how internal delays and lack of coordination continue to hold the ecosystem back.
Hoskinson’s $100 million proposal signals a push to revitalize Cardano’s DeFi space through stablecoin liquidity. The plan offers a clear structure for economic sustainability and calls on the community to move from planning to action.
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