Cardano News Today: Cardano's Ambitious $1 Trillion Move: Tackling DeFi Delays Using AI and Bitcoin

Charles Hoskinson, the founder of Cardano, has announced a new direction to counter ongoing criticism regarding the blockchain’s lackluster DeFi performance and inactive

holder participation, aiming to transform the network into a $1 trillion ecosystem by 2030. In October 2025, Hoskinson introduced a roadmap that prioritizes AI-driven payments, practical real-world applications, and compatibility, marking a transition from a research-heavy approach to a focus on real-world implementation, as reported by .

A key element of this new approach is the adoption of x402, an open payment protocol created by

, which allows AI agents and automated systems to make on-chain, pay-per-use transactions without the need for traditional verification, according to . Patrick Tobler, who leads NMKR, pointed out that Cardano’s use of x402 will utilize its Masumi smart contract system for enhanced automation, setting it apart from other platforms, as highlighted in the Blockchain Magazine report. The initial proof-of-concept minted with x402 has already been released, indicating that mainstream adoption could be near, according to the same Blockchain Magazine report. Hoskinson called this progress “a major step for ,” emphasizing its potential to support an AI-driven agent economy, the report continued.

Even with these developments, Cardano’s DeFi sector is still lagging, with a total value locked (TVL) of $2.9 billion—significantly less than Ethereum and Solana—and a stablecoin market cap of only $36 million, compared to Ethereum’s $164 billion, as reported by Bitcoin Sistemi. Hoskinson attributed these shortcomings to issues with governance and coordination rather than technical barriers, stating, “This isn’t a technology issue. The real challenge is governance, coordination, and ultimately, accountability and responsibility,” in

. He also criticized the Cardano Foundation for previous inefficiencies and stressed the importance of clear accountability to drive the ecosystem’s growth, the BeInCrypto interview noted.

To address these gaps, Hoskinson suggested merging Bitcoin DeFi with Cardano’s Midnight privacy sidechain and RealFi microfinance platform, with the goal of unlocking billions in liquidity by enabling ADA and BTC to be lent, converted into stablecoins, and used in real-world lending products, according to

. He also highlighted the need to activate ADA holders—many of whom are passive stakers—through focused marketing and events to increase DeFi engagement, the Yahoo Finance report stated.

Recent network upgrades, such as the Chang hard fork, have boosted transaction capacity to 1,000 per second, paving the way for large-scale payment solutions, the Blockchain Magazine report mentioned. However, the network’s future success depends on regulatory certainty, consistent execution, and competition from other high-speed blockchains, the report added. Hoskinson acknowledged the “chicken-and-egg” challenge: low activity discourages partnerships, while limited integrations further slow adoption, as noted by the Yahoo Finance report.

With pilot projects scheduled for early 2026, Cardano’s ability to realize its AI and Bitcoin integration ambitions will be crucial in determining whether it can achieve its bold $1 trillion target, according to the Blockchain Magazine report.