Cardano (ADA) transforms: From a potential blockchain to an asset conquering Wall Street

Cardano (ADA) has just achieved an important historical milestone by being officially added to the Nasdaq Crypto Index. This is not only a step out of the "marginal" zone but also confirms that ADA has become one of the key benchmarks that financial institutions and large investors are closely following. This event not only marks a significant turning point in Cardano's development journey but also reflects solid recognition from regulatory bodies and global financial institutions.

ADA joins the Nasdaq Crypto Index

The Nasdaq Crypto Index, which previously included only 5 assets, has expanded to 9 assets with the inclusion of ADA, along with Bitcoin, Ethereum, Litecoin, Chainlink, Uniswap, Solana, XRP, and Stellar. This change not only places ADA on a list of key cryptocurrency assets but also opens up opportunities for Cardano to become an important choice in the investment portfolios of large institutions.

This is not just a symbolic recognition but also a sign that Cardano has transformed from a highly potential blockchain into an official asset, with a clear presence in the standards that major investors are following. As a result, Cardano is now not only regarded as an ordinary blockchain token but as a long-term valuable asset, attracting attention from regulators and asset management companies worldwide.

Before Cardano joined the Nasdaq Crypto Index, Bitcoin accounted for 85% of the index's weight, while Ethereum held 10%. However, the addition of ADA along with three other coins has reduced Bitcoin's weight to 75%, and Ethereum to 11%. This change not only provides an opportunity for risk diversification for investors but also reduces the over-concentration on the two largest names in the industry, thereby creating a more balanced portfolio of cryptocurrency assets.

The addition of more assets to the index also means that portfolio managers have more choices to build investment strategies. This not only helps reduce reliance on a few large assets but also opens up more diverse investment opportunities, promoting sustainable development for the entire crypto industry.

ADA ETF: Waiting for approval from the SEC

With the official entry into the Nasdaq Crypto Index, ADA will benefit from a significant increase in liquidity, which not only helps enhance the market value of ADA but also supports more stable prices. Additionally, the presence of ADA in an important benchmark like the Nasdaq Crypto Index opens favorable opportunities for funds and institutional investors to participate in Cardano more easily. This also means that trading platforms, custody services, and exchanges need to comply with stricter standards regarding trading volume and organizational management. This helps create a safe and stable environment for large investors, thereby boosting confidence and increasing participation in the Cardano market.

Although it has officially joined the Nasdaq Crypto Index, Nasdaq's ETF funds, such as the Hashdex Nasdaq Crypto Index ETF, currently only include Bitcoin and Ethereum. This change will only take effect when the SEC approves the updates to the ETF regulations, which is expected to happen in early 2026. Until there is official approval from this agency, investors in the United States will only be able to follow the expanded index on paper.

The inclusion of ADA in the Nasdaq Crypto Index is a clear signal that major financial institutions and investors are increasingly paying attention to Cardano. With a current market capitalization of around 22 billion dollars, Cardano is attracting strong interest from major players in the industry, presenting opportunities not only for an increase in market value but also for the sustainable development of the Cardano network in the future.

A new vision for Cardano

Hoskinson believes that this transition will not only generate passive income but also strengthen the treasury of Cardano, laying the groundwork for strong growth in the future. He hopes that the integration of stablecoins into the platform will stimulate trading and market creation, while increasing the total value locked (TVL) in the ecosystem.

In the past, Hoskinson has emphasized that major tech companies such as Amazon, Apple, Google, Microsoft, Meta, Nvidia, and Tesla are increasingly interested in the cryptocurrency sector. He predicts that these giants may integrate cryptocurrency wallets and stablecoins into their platforms, connecting with billions of users globally.

Currently, the Cardano treasury holds approximately 1.7 billion ADA, equivalent to over 650 million dollars, and Hoskinson believes that this amount of assets is not fully realizing its potential. He suggests that converting 100 million ADA into USDM would create a self-reinforcing cycle, where the company earns profits from providing liquidity, then uses these profits to buy back ADA, replenish the treasury, and reinvest in the ecosystem.

The USDM stablecoin, issued by Mehen, is pegged at a 1:1 ratio with the US dollar and operates entirely on-chain. Hoskinson believes that the implementation of USDM will be similar to what Ethereum and Solana have done, helping Cardano increase liquidity and strengthen its position in the stablecoin industry.

Although this strategy has attracted attention and consensus from many investors, Hoskinson also expressed disappointment over the lack of action from the community. He criticized Intersect, a fund management tool of Cardano, for not being utilized properly. According to Hoskinson, Intersect was designed to allow the Cardano treasury to freely implement strategic initiatives like this.

Another noteworthy point in Hoskinson's perspective is the shortcoming of not being able to bring Circle's USDC stablecoin onto the Cardano network. He believes that if an agreement is reached with Circle, Cardano will have the opportunity to take a step forward in the fierce competition among blockchains regarding stablecoins.

In addition, Hoskinson also sees potential in attracting venture capital from large funds like a16z or Pantera. He believes that these investors will be able to fund liquidity initiatives, while helping to create a continuous growth cycle, enhancing both liquidity and the value of the Cardano treasury.

In addition to financial strategies, Hoskinson also revealed an ambitious project: Cardano will develop a secure stablecoin, focusing on protecting user privacy. This is a response to the increasingly stringent trend in regulations for digital assets, especially stablecoins with security features like Monero and Zcash, which have been removed from many exchanges due to concerns over criminal activity. Hoskinson emphasized that these stablecoins could be designed to comply with regulations, providing security without posing risks to regulators.

Finally, Hoskinson also shared about the change in the development strategy of Cardano. He stated that Cardano will shift to a more open and flexible development model, allowing external contributions to be more effective while increasing the pace of innovation while maintaining core security principles.

However, Hoskinson also acknowledged that Cardano has been slow to progress in the past, due to its initial design being overly cautious and not flexible enough to adapt quickly to market changes. This has caused Cardano to struggle in developing and competing with major rivals in the blockchain space.

Overall, Cardano's entry into the Nasdaq Crypto Index is a positive signal for the future of Cardano in particular and the blockchain industry in general. However, this transformation is just the beginning. Cardano needs to continue developing its liquidity infrastructure, enhance security features, and keep attracting attention from major investors to realize the great potential it possesses.

However, the entry of Cardano into the Nasdaq Crypto Index has proven that this network is increasingly being recognized in the global financial community. And with such bold development strategies, Cardano may go even further in its journey to become one of the leading blockchains in the crypto industry.

Emma