Charles Hoskinson is not standing idly by as his network’s market value remains under pressure. With ADA trading 94% below its 2021 peak and Cardano’s DeFi ecosystem falling short of expectations, he is looking outward. His primary target is valued at $1.6 trillion - the estimated amount of Bitcoin currently sitting idle in wallets without generating yield or being utilized in financial smart contracts. The plan, which he has publicly shared since May 2026, offers a solution: Bitcoin holders can access lending instruments, yield, and privacy tools via Cardano without surrendering custody of their assets to third parties.
Three Phases Toward New Liquidity
The platform driving this plan is called Pogun. Throughout 2026, its rollout is divided into three strategic phases. In the second quarter, Pogun is set to open a non-margin credit market enabling Bitcoin borrowing without cascading liquidation risks. By the third quarter, a dedicated yield-generation application for Bitcoin holders will go live. The final phase in the fourth quarter will culminate in the launch of a BitVM bridge, designed to minimize the third-party risks traditionally associated with assets like wrapped-Bitcoin.
An infrastructure of this scale requires substantial capital and workforce. Input Output Group has submitted a treasury funding request of around 12.3 million ADA for this initiative alongside other proposals, including the Leios upgrade. A dedicated team of roughly 19 people is working exclusively on building this system. They are not working in isolation, but are supported by Midnight - a Cardano partner network specializing in privacy. Following its mainnet launch in early 2026, Midnight serves as a confidential coordination layer. This role is crucial, allowing Bitcoin users to participate in the DeFi ecosystem without exposing their financial positions.
Why Bitcoin and Why Now
Cardano’s claimed advantage in attracting Bitcoin capital rests on technical grounds. Cardano’s EUTXO model shares design DNA with Bitcoin’s native UTxO system. This architectural affinity is seen as making Cardano better suited to manage Bitcoin DeFi than account-based networks like Ethereum. However, there is an underlying benefit for Cardano: every transaction within this new system requires ADA for operational fees. Although Bitcoin users may not directly see this process, demand for ADA will naturally build alongside adoption.
Within the Cardano community, the strategy has sparked discussion. The plan to draw trillions of dollars in Bitcoin to Cardano strictly requires massive adoption, yet ADA’s market appeal remains constrained while waiting for that adoption to materialize. It is a cycle that must be broken through successful execution. The 19-person team now shoulders a heavy task: convincing notoriously protective Bitcoin holders to park their coins in a neighbor’s yard. Reported by crypto.news.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
