Cardano founder Charles Hoskinson clarifies his proposal to convert a portion of ADA’s on-chain treasury into a multi-asset yield-generating fund.
Hoskinson was recently interviewed by media personality David Gokhshtein to discuss his proposal to boost Cardano’s liquidity and DeFi ecosystem.
Recall that Hoskinson floated a plan to convert approximately $100 million worth of ADA from the treasury into a mix of Cardano-native stablecoins and Bitcoin to earn a yield of up to 10%. He suggested that the yields would be reinvested in ADA and deposited into the treasury.
However, several market commentators criticized his proposal. Some critics, like Anthony Pompliano, suggested that the Cardano founder intends to dump ADA for Bitcoin.
Hoskinson Defends His Proposal
During his recent interview, Hoskinson emphasized the importance of a multi-asset reserve. He mentioned that the Cardano ecosystem remains the largest holder of ADA, with 1.7 billion coins currently in its treasury.
The Cardano founder estimated the current value at $1 billion, noting that it had previously reached an ATH of $5 billion. However, he claims the treasury is currently sitting idle without earning anything in return.
“[The massive ADA] just sits there like a dragon on a big pile of gold,” Hoskinson remarked.
He believes converting a portion of this idle ADA treasury into a multi-asset reserve would generate more yield. This influenced his proposal to convert $100 million worth of ADA into a mix of Cardano-native stablecoins and Bitcoin.
Bitcoin Allocation
Hoskinson proposed allocating 50% of the $100 million to Cardano-native stablecoins, potentially earning yields through lending and other DeFi activities. The remaining half, representing $50 million, will go into Bitcoin, hoping its price will appreciate in the future.
He emphasized that combining these allocations will enable Cardano to earn yields, which will be reinvested in ADA and deposited into the treasury. In his view, this strategy would help to boost Cardano’s stablecoin and TVL metrics.
Cardano Currently Lags Behind Solana and Ethereum in the Stablecoin Metric
Hoskinson argues that major stablecoin issuers like Circle usually consider a network’s TVL and stablecoin supply before launching its USDC token.
According to him, Cardano’s stablecoin and TVL metrics are lower compared to those of major competitors, such as Solana and Ethereum. He said Cardano’s stablecoin supply is roughly $33 million and its TVL is worth around $340 million, bringing the network’s stablecoin-to-DeFi ratio to around 9.8%.
Conversely, he noted that major chains have a massive stablecoin supply, with Solana and Ethereum boasting around $11 billion and $190 billion, respectively.
Proposal Could Launch Soon
However, Hoskinson expects Cardano’s DeFi ecosystem to experience a major boost once the multi-asset treasury goes live. He opined that an official proposal for the treasury can be drafted pretty quickly.
JUST IN: #Cardano $ADA Founder Charles Hoskinson says “the good news is I think we can get a proposal out pretty quickly for a multi-asset managed treasury. Then you can talk about blockchain to blockchain partnerships. Bitcoin, XRP, or others, we can do economic partnerships.” pic.twitter.com/dFVWhSgcQ6
— Angry Crypto Show (@angrycryptoshow) June 19, 2025
Afterward, the Cardano ecosystem team can focus on other initiatives, including partnerships with other blockchain networks, such as Bitcoin and XRP.
Some initiatives lined up for XRP include its integration into the Lace wallet, participation of XRP holders in Midnight’s Glacier airdrop, and better yields for XRP holders.
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