Cardano founder Charles Hoskinson has unveiled a proposal to convert $100 million worth of ADA holdings into Bitcoin and stablecoins, aiming to bolster the network’s decentralized finance ecosystem. The announcement immediately triggered a 6% decline in ADA’s market value, reflecting investor sensitivity to the unexpected treasury strategy.
According to the plan, funds from Cardano’s treasury would be allocated toward BTC and stablecoin assets to enhance liquidity pools and generate sustainable returns throughout DeFi protocols. Hoskinson described the move as critical to ‘bootstrap DeFi activity, improve stablecoin liquidity, and create a self-sustaining yield-generating cycle’ for Cardano.
The proposal ignited intense debate within the community, with developers divided between concerns over potential ADA value dilution and optimism regarding ecosystem resilience. Critics warn such diversification could reduce native token utility, while proponents argue improved liquidity may attract institutional interest and increase total value locked (TVL) across Cardano’s DeFi landscape.
Market volatility and intensified regulatory scrutiny of treasury asset management remain key concerns following the proposal. Observers highlight that execution details and risk controls will dictate whether this strategy achieves its goals of strengthening DeFi infrastructure without undermining Cardano’s core tokenomics.