Cardano founder Charles Hoskinson has revealed that he is currently working on a plan to integrate World Liberty Financial’s USD1 stablecoin into the network. The potential launch of the stablecoin on the network could provide a huge boost, considering how Cardano lags behind other major layer-1 networks in stablecoin development.
Cardano Founder Eyes USD1 Stablecoin Integration
In his latest Ask Me Anything (AMA) session, Hoskinson hinted at potential integration with USD1 (USD), a dollar-pegged stablecoin that is issued by Donald Trump-backed World Liberty Financial (WLFI). Hoskinson stated that he has already spoken with Steve Witkoff, a co-founder of the USD1 stablecoin, about potential integration.
“When USD1 on Cardano? We did talk to the Witkoffs about it. I think JJ can land that deal. He’s talking with them, and we’ve got to figure out a time and place,” Hoskinson said.
Notably, his statement comes amid the launch of the USD1 stablecoin on the Solana network. The need for a highly liquid stablecoin, such as USD1 with a market cap of $2.6 billion and a 24-hour average traded volume of around $859 million, on Cardano is key to its mainstream adoption.
Furthermore, the Cardano network has lagged behind other top-tier L1 chains, partially due to its lack of proper integration with major stablecoins, such as Tether’s USDT and Circle’s USDC, which prevents the minting of their assets directly.
Currently, WanChain Bridge enables Cardano users to transfer USDT and USDC seamlessly through the network. However, the WanChain Bridge on the Cardano ecosystem has not gained significant traction. As a result, the Cardano network currently has a stablecoin market cap of $38.1 million, with the Djed algorithmic stablecoin leading with a total value locked of about $26.41 million.
Hoskinson Agrees With Criticism of The Foundation
During the AMA, Hoskinson agreed with the strong criticism of the Cardano Foundation (CF) for failing to help secure key integration for the ADA project. Hoskinson stated that the failures of CF to secure crucial ecosystem integrations, such as with LayerZero and Chainlink (LINK), have forced the IOG and the Midnight Foundation to fund the expensive deals.
According to Hoskinson, the Swiss government forced the CF to make unwanted changes, leading to years of conflict and locked funds. Nonetheless, Hoskinson stated that he is committed to helping the Cardano network catch up with the Ethereum (ETH) ecosystem, which has the highest total value locked of about $91.7 billion and a stablecoins market cap of around $150 billion.
In addition to plans to boost Cardano’s stablecoin ecosystem, Hoskinson has notably been making moves to build a relationship with other ecosystems. This includes the decision to distribute some of the NIGHT tokens for the Midnight airdrop to BTC, ETH, SOL, XRP, AVAX, BNB, and BAT holders.
The Cardano founder also hinted at a collaboration with stakeholders in the XRP community. This is alongside plans to integrate the RLUSD stablecoin onto the network and enable XRP support for the Lace wallet.
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Source: https://coingape.com/charles-hoskinson-teases-usd1-stablecoin-launch-on-cardano-to-boost-ada-liquidity/
