Cardano founder Charles Hoskinson has introduced a new strategy for managing the $1 billion treasury of the blockchain project. The proposal focuses on diversifying assets and creating income sources for sustainable project development.
Plan for Diversifying Cardano’s Treasury
Hoskinson advocates diversifying the single-asset treasury structure of Cardano by creating a multi-asset portfolio that generates consistent returns. He suggested allocating $100 million towards purchasing Bitcoin and stablecoins like USDM.
Dual Strategy for DeFi Growth and Bitcoin Integration
Hoskinson’s plan operates on two parallel tracks. The first involves deploying treasury funds into native stablecoins and directing them to DeFi protocols. This aims to address Cardano's underperforming stablecoin ecosystem. The second track focuses on the acquisition of Bitcoin to implement Bitcoin-based financial products within Cardano’s ecosystem.
Attracting Institutional Investors
Beyond generating yield, Hoskinson believes the diversification strategy could draw attention from major institutional investors and venture capital firms. He noted that stablecoin liquidity initiatives might attract interest from firms like Andreessen Horowitz and Pantera Capital.
The treasury management strategy proposed by Charles Hoskinson aims to create yielding assets and draw institutional investors into Cardano's ecosystem. This may significantly enhance the platform's standing in the decentralized finance sector.
