Cardano is preparing to enter an important phase with new infrastructure.

Cardano is entering a crucial phase in its development process, as the organizations behind this network strive to build the foundational infrastructure that most major blockchains today have come to regard as standard.

On November 27, a new proposal was made to seek community input on the allocation of 70 million ADA (, equivalent to about 30 million USD ), to integrate top stablecoins, custodial service providers, cross-chain bridges, price oracles, and analytical tools for institutions.

This project is coordinated by Input Output, EMURGO, the Cardano Foundation, Intersect, and the Midnight Foundation – a rare alliance in the context of Cardano often being criticized for its slow progress and decentralization in governance.

The main message of this collaboration is very clear: Cardano wants to enter 2026 with the network economy that they have lacked for many years.

Why Cardano's pivot is important

The integration effort is taking place against the backdrop of the Cardano economy still being quite thin. According to data from DefiLlama, the network led by Charles Hoskinson currently has a total value locked (TVL) of approximately 248 million USD, of which only about 40 million USD is stablecoin. The scale of lending, providing liquidity, and issuing real-world assets (RWA) is also limited compared to ecosystems that regard these assets as basic utilities.

In comparison, Ethereum alone has over 170 billion USD in stablecoins, highlighting the large gap that Cardano is striving to close.

The shortage of stablecoin reserves, liquidity channels, and tools for institutions makes it difficult for Cardano to generate the necessary economic network effects to become a truly valuable blockchain. The fragility of the network was exposed when Cardano experienced a short chain split earlier this month. Although the incident was resolved quickly, it highlighted limitations in operational capabilities, real-time monitoring, and the necessary protective mechanisms for the institutional environment.

The budget for this integration program aims to establish a systematic process for onboarding top providers, including milestones, audits, service level agreements, and transparent tracking. Rather than having fragmented agreements or ad hoc negotiations, this fund will create an official and accountable “pipeline” for building the infrastructure that Cardano has long lacked. Tim Harrison, Director of Input Output, commented:

“This is a unified and centralized type that helps accelerate growth in DeFi, DePIN, and RWA.”

The limitations still exist

However, these integrations may not be enough to drive DeFi on Cardano. Charles Hoskinson has acknowledged the DeFi gap of the network but also emphasized that the deployment of USDC, USDT, or other stablecoins will not “magically” solve the entire problem.

He explained that millions of ADA holders participate in staking and governance, but only a few venture into DeFi. The problem lies in coordination and responsibility, creating a vicious cycle: low liquidity makes integrations difficult, and a lack of integrations continues to restrict liquidity.

According to Hoskinson's roadmap, the DeFi growth of Cardano will be linked to its interoperability with Bitcoin and the Midnight security network. If executed well, these integrations could generate a volume flow of “billions of USD” into stablecoins and Cardano's native lending protocol.

The new budget will only be effective if it encourages passive ADA holders to become active liquidity providers and attracts issuers with market makers willing to support real trading.

Challenge 2026

The year 2026 will be a test of whether Cardano's governance mechanism and new supplier “pipeline” can translate integrated budgets into actual economic growth.

If a leading fiat stablecoin is deployed with the ability to support market makers, Cardano's $40 million stablecoin base could expand into hundreds of millions of dollars – aligning with the early adoption phase of other L1 blockchains.

The DeFi TVL of 248 million USD for Cardano could also reach 500 million USD if the network attracts reputable custody and analytics platforms. This is the level at which lending, RWA, and liquidity routing begin to have a multiplying effect instead of stagnating.

In addition, bridges, price oracles, and institutional wallets remain important integrations. With them, Cardano will enter 2026 with the minimum necessary infrastructure to compete with managed DeFi projects, issue RWAs, and the BTC–ADA liquidity flow tied to the roadmap interacting with Bitcoin.

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