Charles Hoskinson Moves to Calm Cardano Community Nerves Over ADA Treasury Plan

• Cardano will invest $100 million in a sovereign wealth fund.
• The fund will consist of a blend of stablecoins incumbent on the Cardano network.
• ADA has deep liquidity and will not be affected by the $100 million investment.

Cardano founder Charles Hoskinson has moved to dismiss community fears that a proposed “Sovereign Wealth Fund” would hurt the price of ADA. 

In a recent video address, Hoskinson explained how Cardano plans to fund the initiative and emphasized that it would not lead to a crash in ADA’s price, as widely speculated.

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

— Charles Hoskinson (@IOHK_Charles) June 13, 2025

The reassurance comes after his June 12 proposal to the Cardano community to allocate $100 million worth of ADA from the project’s treasury to establish the fund. The plan involves converting the ADA into a blend of native stablecoins, like USDM, and even some Bitcoin to jumpstart DeFi activity and back new financial products on the network.

Related: Hoskinson: Cardano’s 1.7B ADA Treasury Could Earn $5–10 Million in ADA Each Year

The $100M Proposal to Jumpstart Cardano DeFi

Hoskinson has initi…

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