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Cardano News: Foundation Pledges Eight-Figure ADA Liquidity for Stablecoin Projects

Cardano Foundation pledges eight-figure ADA liquidity to back stablecoin projects, aiming to boost DeFi adoption.
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Cardano News: Foundation Pledges Eight-Figure ADA Liquidity for Stablecoin Projects

Highlights

  • Cardano Foundation commits an eight-figure ADA liquidity pledge to support stablecoin projects and expand DeFi adoption.
  • Initiative includes the Stablecoin DeFi Liquidity Budget, aimed at strengthening user on- and off-ramps.
  • Charles Hoskinson supports the liquidity pledge but urges further reforms, including a community-elected board.

The Cardano Foundation announced it would commit an eight-figure sum in ADA to back stablecoin initiatives. The goal of this development is to increase its influence in decentralized finance (DeFi).

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Cardano Foundation Allocates ADA Liquidity for Stablecoins

In its latest roadmap update, the Cardano Foundation confirmed it will provide substantial liquidity, amounting to tens of millions in ADA, to support multiple stablecoin projects. 

While such financial commitments were not part of its original mandate, the Foundation acknowledged the need to improve on- and off-ramps for users. According to them, this step could drive stronger adoption in the next six to twelve months.

Alongside liquidity support, the Foundation is expanding its focus on community-led initiatives. This includes working on proposals such as the Stablecoin DeFi Liquidity Budget. This program is designed to enhance DeFi participation in its ecosystem. 

Leaders say the data collected from its own liquidity efforts will help refine future community-backed proposals.

This follows other developments within the stablecoin ecosystem. Earlier this year, Cardano founder Charles Hoskinson proposed converting $100 million worth of ADA into a mix of stablecoins and Bitcoin to boost liquidity and strengthen the network’s DeFi ecosystem. 

Furthermore, he also revealed efforts to integrate World Liberty Financial’s USD1 stablecoin into Cardano. These developments could essentially help the blockchain close the gap with rival layer-1 networks.

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Cardano Plans Venture Hub Moves and Governance Reforms

The Cardano Venture Hub, which began as a pilot earlier this year, will expand to offer enterprise and startup programs. In 2026, the Foundation plans to provide 2 million ADA in loans, advisory services, and technical support to businesses. It is anticipated that collaborations with Draper U, Techstars, and CV VC will support this endeavour.

Governance is also seeing some changes. Building on the delegation of 140 million tokens to seven Builder DReps, the Foundation will now allocate a further 220 million ADA to new Adoption and Operations DReps. This represents a shift away from self-delegation and signals a stronger emphasis on decentralized decision-making.

In reaction to these changes, Hoskinson hailed the Foundation’s liquidity pledge. He called it a “good start” but urged further steps, including the creation of a community-elected board.

The roadmap’s release comes after an independent audit clarified concerns about 318 million “missing” tokens. The report confirmed these assets had been transferred into reserves. This further cleared doubts about the project’s credibility.

Building on the ecosystem’s growth, Hoskinson hinted at a potential collaboration with Ripple. Reports suggested that Lace Wallet integration could come before the end of the year.

It is also worth mentioning that the roadmap outlined fresh steps to enhance ADA’s Web3 presence. Two new hires are joining the Foundation’s Web3 team. They would be tasked with integrating real-world assets (RWAs), improving exchange listings, and driving adoption in new sectors.

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Michael Adeleke

Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.

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