OTC sales are expected to limit market disruption, with support from industry veterans like Emurgo CEO Phillip Pon.
On June 12, Charles Hoskinson shared his vision for reshaping Cardano’s financial strategy with a bold $100 million proposal. Highlighting the underperformance of stablecoin liquidity in the Cardano DeFi ecosystem, Hoskinson drew parallels with sovereign wealth funds like Norway’s and Abu Dhabi’s, which use diversification to ensure consistent returns.
Currently, Cardano’s stablecoin liquidity is less than 10% of its DeFi TVL. Comparatively, Ethereum sits at 190% and Solana at 110%, indicating how far Cardano lags in this area.
Hoskinson’s plan would deploy ADA from the treasury to mint stablecoins such as USDM, USDA, and iUSD and simultaneously purchase Bitcoin. This dual effort would not only seed DeFi growth but also add stable yield generators into the treasury mix.
The concept of a decentralized sovereign wealth fund is increasingly gaining attention in crypto circles, with Cardano positioning itself at the frontier.
By transforming idle assets into productive tools, the network could potentially match the efficiency of state-backed funds, which often yield over 6% annually, as seen in Norway’s $1.7 trillion fund.
A major concern raised by the community was whether selling $100 million worth of ADA would crash the token’s price. In his latest update, Charles Hoskinson said any big sales will be handled OTC, shielding the open market from sudden price moves.
Industry veteran Phillip Pon, CEO of Emurgo, quickly backed the plan. Drawing on his years running OTC desks, Pon explained that moving the coins in small tranches keeps ADA stable.
He warned that locking the treasury up entirely in ADA carries bigger risks over time, so hedging with stablecoins and Bitcoin makes more sense. Layering yield-bearing assets on top also smooths out price swings and gives dApps, today starved for cash, a sturdier runway.
More than just an emergency fund, the move signals that Cardano is ready to play with serious capital. By spinning up DeFi pools for dollars and Bitcoin, the network could lure institutional traders after low-risk yield.
That sets off a flywheel: deeper liquidity pulls in users, users attract projects, and every step fattens the treasury. Done right, Hoskinson’s plan could make Cardano one of the first blockchains to operate like a self-sufficient bank, guiding itself without outside backers.
