Charles Hoskinson floats $100M in ADA to create Decentralized Sovereign Wealth Fund
Hoskinson proposes $100M ADA DeFi allocation
Cardano co-founder Charles Hoskinson has proposed converting $100 million worth of ADA—the network’s native token—into a mix of Bitcoin and Cardano-based stablecoins, in a move aimed at accelerating the development of the platform’s DeFi and stablecoin ecosystems.
Speaking during a YouTube livestream, Hoskinson outlined the idea of reallocating treasury funds to support liquidity and adoption. The proposed assets include Bitcoin, along with USDM and USDA, stablecoins native to Cardano’s blockchain. “We could take $100 million of ADA in the treasury, convert it... to prime Bitcoin DeFi,” he said.
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Treasury diversification for ecosystem growth
Hoskinson emphasized that such a move could inject momentum into Cardano’s decentralized finance sector, especially as newer protocols seek deeper liquidity pools. The initiative would not only bolster adoption of Cardano-native stablecoins, but also enhance cross-chain activity by tapping into Bitcoin’s established ecosystem.
He also downplayed fears about the market impact of liquidating ADA from treasury reserves, noting that ADA “does not have a liquidity problem.” By proposing the move as part of a broader strategic allocation rather than an emergency funding action, Hoskinson framed it as an investment in long-term network sustainability.
Diverging views within Cardano leadership
Hoskinson’s remarks stand in contrast to those of Cardano Foundation CEO Frederik Gregaard, who recently stated that total value locked (TVL) is not a key measure of blockchain adoption. Gregaard’s focus has instead been on regulatory alignment and enterprise-grade blockchain infrastructure.
The difference in perspective highlights a growing strategic debate within the Cardano ecosystem over how best to define and measure progress.
As DeFi platforms across blockchains mature, Cardano’s ability to deploy capital effectively could influence its relevance in the competitive layer-one landscape. Whether Hoskinson’s $100 million swap proposal gains community and governance support will be a critical indicator of Cardano’s strategic direction in the months ahead.
We also reported that Cardano launches Bitcoin DeFi protocol Cardinal.
