Cardano has announced a strategic treasury allocation of $100 million worth of ADA into Bitcoin and its native stablecoins USDM and USDA. The move aims to bolster liquidity within Cardano’s decentralized finance (DeFi) ecosystem and attract greater institutional participation.
Charles Hoskinson, Cardano’s founder, cited the network’s low stablecoin-to-DeFi ratio—currently under 10%—as a primary motivation for the diversification. The announcement triggered a 4% short-term decline in ADA’s price, reflecting immediate market uncertainty.
This treasury reallocation mirrors institutional investment strategies by balancing growth opportunities with risk management. Cardano anticipates the initiative will strengthen its DeFi infrastructure and increase appeal to institutional investors seeking diversified blockchain exposure.