Cardano Founder Defends $100M Bitcoin Plan to Boost ADA and DeFi

Cardano founder Charles Hoskinson has addressed growing criticism over his plan to convert $100 million worth of ADA from the treasury into Bitcoin and Cardano-native stablecoins. In a recent interview with media personality David Gokhshtein, Hoskinson explained the move aims to boost Cardano’s liquidity and DeFi ecosystem not abandon it.

Earlier, Hoskinson proposed converting idle ADA into a diversified reserve to earn a 10% yield. However, some commentators, including Anthony Pompliano, accused him of planning to dump ADA for Bitcoin. Hoskinson dismissed these claims, stressing that Cardano would actually benefit from this multi-asset strategy.

Cardano Treasury Remains Underutilized

Currently, Cardano’s treasury holds about 1.7 billion ADA, which Hoskinson values at $1 billion. He noted it once peaked at $5 billion but now sits idle. “It just sits there like a dragon on a big pile of gold,” he said. To make this capital productive, Hoskinson proposed allocating $50 million to Cardano-native stablecoins and another $50 million to Bitcoin.

Hoskinson stated that any yield from these investments would go straight back into ADA and be returned to the treasury. He believes this will help grow Cardano’s total value locked (TVL) and stablecoin supply, two key metrics that attract major stablecoin issuers like Circle.

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

Cardano Lags Behind Solana and Ethereum

Currently, Cardano’s stablecoin supply sits at just $33 million, with a TVL of $340 million resulting in a 9.8% stablecoin-to-DeFi ratio. In contrast, Solana holds $11 billion and Ethereum about $190 billion in stablecoins.

Hoskinson expects the official proposal to move forward quickly. He also teased future collaborations with networks like Bitcoin and XRP. Upcoming XRP-related plans include integration into the Lace wallet, Midnight’s Glacier airdrop, and improved yield opportunities for XRP holders.

Hoskinson remains firm that his $100 million plan will strengthen Cardano’s position in DeFi. By earning yield and reinvesting in ADA, the ecosystem can attract more users, issuers, and liquidity.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.