 
 
Charles Hoskinson believes Bitcoin’s DeFi could be the catalyst that finally unlocks massive liquidity for Cardano.
Speaking during his latest AMA, the Cardano founder predicted that integrating Bitcoin-based decentralized finance could “create billions of dollars of TVL for the network and bring a lot of Bitcoin.”
Hoskinson used the session to challenge the widespread notion that the introduction of major stablecoins, like USDT or USDC, would automatically transform Cardano’s ecosystem. According to him, such expectations oversimplify the network’s challenges.
The Cardano founder believes it’s absurd to think “the existence of one of these larger stablecoins is magically going to make Cardano’s entire DeFi problem go away,” noting that Cardano already supports native, asset-backed stablecoins like USDM and USDA that maintain their pegs efficiently.
Hoskinson emphasized that the fundamental limitation lies in user engagement, not technology. Despite boasting over 1.3 million staking and governance participants holding more than $15 billion in ADA, most remain passive investors.
 
“Cardano has a fertile ecosystem,” he said, “But not a lot of those people have crossed the chasm to use DeFi in Cardano.” This passivity, he explained, creates a “chicken-and-egg” scenario where low activity deters partnerships and liquidity inflows, further stunting ecosystem growth.
To address this, Hoskinson unveiled a multi-year roadmap designed to bridge DeFi with real-world finance, naming Midnight and RealFi as central initiatives to this plan.
Both projects will connect with Bitcoin’s DeFi infrastructure, enabling ADA and BTC to be lent, converted into stablecoins, and deployed in real-world lending products. These integrations, he noted, could help Cardano tap into Bitcoin’s deep capital base and attract institutional-level liquidity.
Still, Hoskinson admitted that Cardano’s most pressing challenge is organizational rather than technical. “It’s not a technology problem,” he said. “It’s a problem of governance and coordination and ultimately accountability and responsibility.”
To resolve this, he proposed clearer delegation of responsibility and stronger marketing initiatives to encourage ADA holders to participate actively in DeFi. He also framed 2026 as the year for Cardano to solve its coordination problem, and possibly redefine its role in Bitcoin-integrated defi.