Emily Walker
Recently on X, Charles Hoskinson, the CEO of Input Output Global (IOG) and the founder of Cardano, responded to claims regarding the Cardano Foundation’s (CF) handling of stablecoin integrations. He also mentioned new opportunities with Ripple’s RLUSD. This dialogue highlighted ongoing frictions involving Hoskinson, the CF, and parts of the community, as well as Cardano’s possible partnerships with Ripple.
Dispute Over Cardano Foundation’s USDC Approach
The controversy arose when staking pool operator @matiwinnetou accused Hoskinson and the CF of failing to secure popular stablecoins for the network. “The Cardano Foundation is ineffective… with their excess ADA, they’re reluctant to invest in large budgets. The community wants USDC and USDT. It creates a mismatch for Cardano as a decentralized blockchain in a centralized environment. Moreover, Hoskinson’s responses often exacerbate the situation,” the operator stated.
In response, Hoskinson rejected the blame directed at IOG, indicating that the CF had made poor choices related to USDC integration. “The CF had the chance to integrate Circle in 2021 for 3 million dollars, during a time their assets were nearly worth 2 billion dollars. They declined this opportunity, according to their own staff,” he pointed out. He also expressed disbelief at their attempts to shift blame. “You alter history to evade responsibility. I am grateful you’re no longer part of my team. Dishonesty has no place at IOG,” he added.
User Jane (@Jane14457995) joined the conversation, expressing discontent with Hoskinson’s attitude: “I’m unsure who’s correct, but your tone suggests self-sabotage. A recent AMA showed your perspective on why Cardano lacks USDC was more complex. Criticizing a former employee should be below you.”
Hoskinson then elaborated on the CF’s lost chance, accusing them of hindering progress by not financing stablecoin projects and opposing budget alternatives. “There seems to be endless defense of the CF. Your supposed neutrality is laughable. Those who deceive must be held accountable. The truth is they opted out of the deal in 2021,” he stated.
He emphasized the community’s strong demand for stablecoins: “The community desires USDC, CNT liquidity, and improved Oracle support. The CF is capable of facilitating these needs but opts out while obstructing budget measures, leading to a loss for everyone involved.”
Furthermore, he warned that Cardano’s growth strategy could falter without a stablecoin solution. “Insufficient funding exists to support the ecosystem’s growth, future integrations, and marketing, even if IOG serves pro bono. This issue is critical for the future of the entire ecosystem.”
Considering Collaboration with Ripple’s RLUSD
As discussions continued, Jane recommended a partnership with Ripple, noting a “renewed connection with the Ripple/XRP community” that might be “simpler and cheaper” than other options. She inquired, “Would IO or Intersect pursue this if the CF doesn’t?”
In reply, Hoskinson stated, “If we can realistically integrate RLUSD, I will consider it a gift to the ecosystem. Cardano requires a robust stablecoin framework from USDM, Djed, and RLUSD.” Jane tagged Ripple CEO Brad Garlinghouse, suggesting that collaboration would be beneficial for both communities.
Hoskinson confirmed that discussions are already happening: “Jane, we’ve had conversations with the RLUSD team and are actively exploring options.”
He had previously indicated that engagements with Ripple were just beginning, aiming to potentially incorporate Ripple’s infrastructure into Cardano’s forthcoming privacy-oriented sidechain, Midnight. “We’d like Ripple to be part of the Midnight ecosystem,” he said, highlighting this initial collaboration.
According to Hoskinson, he and Ripple’s CTO David Schwartz have been involved in technical dialogue to explore mutual advantages. “Discussions are ongoing between the Midnight and Ripple teams, focusing on technological cooperation. We are eager to understand how their systems operate,” Hoskinson noted.
Despite the positive developments, he recognized that formal partnerships require time, stating, “The first step involved technical discussions, which were productive with David [Schwartz], who has been incredibly helpful. Beyond that, real integration work and further tasks will be necessary, but overall, they’ve been cooperative.”
As of this report, ADA is trading at $0.92.