Cardano founder Charles Hoskinson has made clear his proposal to convert a portion of the ADA’s on-chain Treasury into a multi-asset yield generation fund.
Hoskinson He was recently interviewed by media personality David Goffstein to discuss his proposal to increase Cardano’s fluidity Defi Ecosystem.
Remember Hoskinson has come up with plans to convert about $100 million worth of ADA from the Treasury to a mix of Cardano-Native Stablecoins and Bitcoins to earn up to 10% yields. He suggested that yields would be reinvested in the ADA and placed in the Treasury Department.
However, several market commentators criticized his proposal. Some critics like Anthony Pompliano have suggested that Cardano founder intends to abandon the ADA for Bitcoin.
Hoskinson defends his proposal
In his recent interview, Hoskinson highlighted the importance of multi-asset reserves. He said the Cardano ecosystem remains the largest owner of the ADA, with 1.7 billion coins currently in the Treasury.
The founder of Cardano estimated its current value at $1 billion, noting that it had previously reached $5 billion ATH. However, he claims that the Treasury is currently sitting idle without gaining anything.
“The (gigantic ada) sits there like a dragon on a big pile of gold.” Hoskinson said.
He believes that converting this idle Ada Treasury into a multi-asset reserve will result in more yields. This influenced his proposal to convert $100 million worth of ADA into a mix of Cardano-Native Stablecoins and Bitcoins.
Bitcoin allocation
Hoskinson suggests that 50% of the $100 million be allocated to Cardano-Native Stablecoins, potentially earning yields through lending and other Defi activities. The other half represents $50 million, and we are looking to enter Bitcoin and expect prices to rise in the future.
He emphasized that combining these allocations will allow Cardano to earn a yield. This will be reinvested in the ADA and deposited in the Ministry of Finance. In his view, this strategy will help boost Cardano’s stubcoin and TVL metrics.
Cardano is currently behind Solana and Ethereum at Stablecoin Metric
Hoskinson argues that major Stablecoin publishers like Circle usually consider the network’s TVL and Stablecoin supply before launching USDC tokens.
According to him, Cardano’s stubcoin and TVL metrics are lower compared to those of major competitors such as Solana and Ethereum. He said Cardano’s Stablecoin Supply is around $33 million, and its TVL is worth around $340 million, bringing the network’s Stablecoin-Defi ratio to about 9.8%.
Conversely, he pointed out that major chains have a massive supply of stubcoin, with Solana and Ethereum boasting around $11 billion and $190 billion respectively.
The suggestion may launch soon
However, Hoskinson hopes that once the Multi-Asset Treasury is released, Cardano’s defi ecosystem will experience a major boost. He said the official Treasury proposal could be drafted fairly quickly.
Just: Charles Hoskinson, founder of #cardano $ada, said, “The good news is that we can put forward proposals fairly quickly for the Multi-Asset Managed Treasury. We can talk about blockchain partnerships. pic.twitter.com/dfvwhsgcq6
– Angry Crypto Show (@angrycryptoshow) June 19, 2025
The Cardano Ecosystem team can then focus on other initiatives, such as partnerships with other blockchain networks such as Bitcoin and XRP.
Several initiatives alongside XRP include integration into race wallets, participation of XRP holders in Midnight’s Glacier Airdrop, and better yields for XRP holders.
