Cardano Considers Crypto Wealth Fund to Supercharge DeFi

Cardano’s leadership is floating an unconventional idea: turn part of the project’s war chest into a revenue-generating portfolio that holds Bitcoin and USD-pegged tokens.

The blueprint, outlined by founder Charles Hoskinson in a recent livestream, calls for swapping roughly $100 million in ADA—about one­tenth of the network’s treasury—into liquid assets that could be lent, staked, or deployed as market-making capital inside Cardano’s DeFi protocols.

Supporters say the shift would attack Cardano’s biggest weakness: scarce stablecoin liquidity. At the moment, only about $33 million in dollar-denominated tokens circulates on the chain, versus a total DeFi value locked near $330 million. Competing networks post far richer ratios—Ethereum’s stablecoin supply exceeds its TVL, Solana’s hovers above 100 percent—making them more attractive to yield-hunters. A sovereign-style fund, earning an estimated five-to-ten percent annually, could recycle profits back into ADA buy-backs or new grants, seeding a self-reinforcing growth loop.

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Skeptics worry that unloading 100 million ADA might crush the token’s price. Hoskinson counters that ADA’s daily volumes routinely top hundreds of millions of dollars; executed slowly through OTC desks or time-weighted algorithms, the trade could finish in a few months with minimal slippage—“well under half a percent,” he claims.

A draft governance framework—envisioning a board of finance and Web3 specialists plus on-chain auditing—circulates among core teams and will likely surface at the Rare Evo conference later this year. If the community signs off, Cardano’s treasury could evolve from a static pile of ADA into an actively managed fund designed to bankroll the chain’s next wave of decentralized apps.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.