Hoskinson Wants to Use Bitcoin and Stablecoins to Fund ADA Buyback

• Charles Hoskinson proposes sovereign wealth fund for Cardano
• Bitcoin and stablecoins used to generate sustainable income
• ADA Buyback Aims to Strengthen Cardano Ecosystem

Cardano founder Charles Hoskinson has revealed plans to drive blockchain development through a decentralized sovereign wealth fund. The proposal envisages the strategic use of Bitcoin and stablecoins as yield-generating instruments to bolster the value of the ecosystem’s native token, ADA.

During a podcast broadcast on the X platform, Hoskinson detailed the initiative, which was inspired by national fund models such as Norway's. The idea is to convert approximately $100 million in ADA from Cardano's treasury into lower-volatility assets such as stablecoins and Bitcoin, with the aim of obtaining continuous financial returns.

Cardano Decentralized Sovereign Wealth Fund https://t.co/8RIELNl872

— Charles Hoskinson (@IOHK_Charles) June 13, 2025

According to him, the profits obtained from these investments would be reinjected into Cardano through scheduled ADA buybacks, which could positively influence the price and market capitalization of the cryptocurrency over time.

“If we reinvest these profits annually over five to ten years, we can create a self-sustaining financial model that strengthens Cardano’s future,” Hoskinson said, highlighting the importance of asset diversification in decentralized treasury management.

The proposal has been met with mixed opinions among community members. While some support the strategy, others, like Chad Luce, suggest alternatives such as the creation of funds focused on green energy or private equity, which they consider more attractive from the point of view of return on investment.

Despite the differences, Hoskinson remains convinced that smart use of the treasury can make the project more resilient. The strategy seeks financial stability without compromising the network's mission, promoting the long-term appreciation of ADA through strategic reinvestments.

ADA is currently trading at around $0,64, down 5,4% daily, with a market cap of around $10,9 billion. The new plan could represent an alternative approach to address market swings and encourage ecosystem growth.