Cardano founder Charles Hoskinson unveiled a bold proposal aimed at strengthening the Cardano ecosystem’s stablecoin liquidity. Responding to a user’s request for more stablecoin options, Hoskinson floated the idea of converting $100 million worth of ADA—around 100 million tokens—from the network’s treasury into USDM, Cardano’s fiat-backed stablecoin.
The Cardano treasury currently holds approximately 1.7 billion ADA, valued at $1.23 billion. Hoskinson suggested that allocating a portion of this fund into USDM could jumpstart liquidity within the ecosystem. More importantly, the move could pave the way for strategic partnerships and increased network activity.
One key partner Hoskinson highlighted was Brevan Howard, a major hedge fund. Through collaboration with Brevan Howard, the Cardano network could bolster its total value locked (TVL) and improve market-making efforts—two critical metrics for ecosystem growth and investor confidence.
Hoskinson also emphasized that the initiative could deliver tangible financial returns. He estimated that converting ADA to USDM and deploying it effectively could yield an annual return of 5% to 10%. These returns—between $5 million and $10 million worth of ADA per year—would then be used to repurchase ADA on the open market, effectively recycling funds back into the treasury and potentially reducing ADA’s circulating supply.
Every year it would return 5-10 million dollars worth of ada
— Charles Hoskinson (@IOHK_Charles) June 10, 2025
Beyond treasury gains, Hoskinson believes the proposal could help Cardano gain the attention of prominent venture capitalists like a16z and Pantera Capital. He suggested that this strategy might prompt these VCs to invest between $25 million and $45 million into Cardano—despite their historical preference for rivals like Solana.
Notably, Hoskinson has previously criticized VCs for overlooking Cardano, claiming that firms like a16z have ignored the network due to a lack of financial stake. He reiterated this sentiment at Consensus 2025 in Toronto, where he also clarified that Cardano’s upcoming Midnight project—featuring the NIGHT and DUST token airdrops—would exclude early insider and VC allocations.
Also Read: Cardano (ADA) Eyes Breakout: Bullish Rally or Bearish Drop?
Hoskinson’s proposal marks a strategic pivot for Cardano, blending decentralized ideals with smart financial engineering to fortify its ecosystem and appeal to mainstream capital.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
