A Look at How Two Top Blockchains, Cardano and Polkadot, Plan to Build on Top of Bitcoin

Charles Hoskinson is making headlines with his plan to convert $100 million worth of ADA treasury into Bitcoin and Cardano-based stablecoins. His aim is to strengthen Bitcoin’s presence in decentralized finance (DeFi), a vision he believes is both timely and critical.

With ADA liquidity shifting toward BTC and Cardano-native stablecoins like USDM and USDA, Hoskinson is betting on a future where Bitcoin plays a major role in cross-chain DeFi. Dismissing critics who fear price disruption, he remains confident this strategy will enhance long-term utility and market alignment between Cardano and Bitcoin.

Cardano’s Plan to Power Bitcoin DeFi with Its Treasury

Hoskinson’s proposal is to use a portion of Cardano’s 1.7 billion ADA treasury to create a dedicated liquidity fund and now it’s closer to a reality. Upgrades like Taproot have enabled Bitcoin to support more complex smart contract functionality.

In an interview hosted by Bitcoin Magazine, Hoskinson sees Cardano’s extended UTXO model as a perfect complement to Bitcoin’s evolving technical base. Cardano can offer DeFi functionality without compromising Bitcoin holders’ exposure. This model allows users to participate in Cardano’s ecosystem while still transacting in BTC for fees and rewards.

Related: Hoskinson: Apple, Microsoft Crypto Entry Could Be Key to $250k Bitcoin

Moreover, institutional interest continues to build momentum. Financial giants such as BlackRock now hold hundreds of thousands of BTC. This growing institutional foothold, coupled with innovations in Bitcoin bridging, could push BTC adoption even further.

Related: Is 2025 Crypto’s Year? Hoskinson Says Yes After $710B Market Dip & Rebound

Hoskinson believes Bitcoin could rise to $250,000–$500,000 within two years, eventually reaching $1 million by 2030. His forecast aligns with broader market optimism from other figures like Cathie Wood, who anticipates Bitcoin surging beyond $2 million in the long term.

Polkadot Follows Suit with Its Own “Strategic Pivot” to Bitcoin

In a parallel development, the Polkadot community is now exploring a similar strategic pivot. A new proposal suggests converting over 500,000 DOT into tBTC gradually through Hydration’s automated DCA platform.

This move is not just about price speculation. It’s also designed to deepen on-chain liquidity and strengthen DeFi capabilities on Polkadot. The initiative uses Threshold Network’s decentralized BTC bridge, emphasizing security and non-custodial storage.

Importantly, this comes at a moment when DOT has underperformed relative to BTC. If Polkadot had started DCA into BTC earlier this year, it might have locked in over $1.5 million in gains. By adopting Bitcoin strategically, Polkadot aims to diversify treasury assets and hedge against further underperformance.