Cardano is preparing to overhaul its $1.2 billion treasury by transforming a portion into a diversified crypto fund. Founder Charles Hoskinson has proposed converting around $100 million worth of ADA into yield-generating assets to boost DeFi’s growth and financial stability.
This change marks a strategic shift in Cardano’s financial posture. Instead of holding non-productive ADA alone, the new plan includes stablecoins like USDM, USDA, and IUSD alongside Bitcoin and synthetic assets. The aim is to develop a self-sustaining treasury that would reflect global sovereign wealth funds.
The fund would be used to purchase additional ADA and multiply the long-term treasury by returning earned funds. Such a framework would minimize the use of network inflation and transaction fee dependency, which would increase the ecosystem’s financial independence.
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One of the main aspects of the plan is improving DeFi liquidity within the Cardano network. Currently, the DeFi stablecoin ratio is less than 10 percent. The ratios of Ethereum and Solana are significantly higher, totaling 190 and 110 percent, respectively.
In response, Cardano hopes to raise its stablecoin percentage to at least 33 percent. With the introduction of liquid assets, trading activity is likely to increase, consumer confidence will grow, and the listing of native stablecoins on large exchanges is expected to be facilitated.
Hoskinson Proposes New Treasury Board for Asset Management
In addition to financial reforms, the proposal introduces a governance structure to oversee the new fund. A board would be elected to manage the assets, with each member competing to deliver the highest returns.
This approach brings decentralization and accountability into treasury operations. It would also provide an opportunity for knowledgeable financial experts in the community to volunteer their services in managing Cardano funds.
In the future, the treasury might be diversified by tokens of partner networks like the KNIGHT token of Midnight. These assets will be integrated and managed via additional infrastructure and integration as the platform develops.
Cardano’s $100 million crypto fund plan signals a bold shift in treasury strategy. The move is designed to strengthen DeFi liquidity, improve financial sustainability, and build a decentralized structure for long-term ecosystem growth.
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