Cardano’s treasury is moving away from ADA. Intersect disclosed that, in 2026, treasury reserve contracts have cumulatively disbursed 26.1 million USDCx, 201.67 million ADA, and 4.8 million USDM. A governance budget of 4.5 million USDM is scheduled through July 2027, while Se7en Labs’ 316,000 USDM budget for maintaining Daedalus runs through September.
The key is the structure: once budgets are denominated in dollars, spending for the next two years is locked in, and ADA’s price movements have no bearing on those funds. An October 16 snapshot showed that three payments from September 29 had been unlocked, but no milestone evidence had been submitted—unlocking funds doesn’t mean they can be spent. What’s more, USDCx must first be converted into USDC before it can be paid out, and Circle, IOG, and Midgard each have the authority to pause the bridge. Redemptions are also subject to identity and sanctions checks.
My view is that governance is buying itself insurance, not that this is bearish—but it does chip away at the “paying with $ADA ” narrative. If more treasuries follow suit and shift to dollars, would you still hold $ADA for the long term?
The key is the structure: once budgets are denominated in dollars, spending for the next two years is locked in, and ADA’s price movements have no bearing on those funds. An October 16 snapshot showed that three payments from September 29 had been unlocked, but no milestone evidence had been submitted—unlocking funds doesn’t mean they can be spent. What’s more, USDCx must first be converted into USDC before it can be paid out, and Circle, IOG, and Midgard each have the authority to pause the bridge. Redemptions are also subject to identity and sanctions checks.
My view is that governance is buying itself insurance, not that this is bearish—but it does chip away at the “paying with $ADA ” narrative. If more treasuries follow suit and shift to dollars, would you still hold $ADA for the long term?
