Cardano Records $26.1 Million in USDCx Under Intersect Management
Intersect organization uses stablecoins for part of its development budget to reduce exposure to ADA volatility.
Security Editor: Fabricio Marcilio 1 min read
The Intersect organization, which oversees Cardano governance, has a treasury reserve contract that has cumulatively administered $26.1 million in USDCx to date. This move is part of a shift in managing development budgets that run through 2027.
In addition to USDCx, the entity is also using USDM to fund technical and governance projects. The total amount held in stablecoins also includes $4.8 million in development budgets already allocated to smart contracts.
The measure aims to protect the purchasing power of these projects against price swings in the network's native cryptocurrency. Despite this strategy, other budgets, such as those for the Pallas and Hydra projects, remain denominated directly in ADA.
Vendors receiving these payments assume the risks related to conversion and asset liquidity. Access to these funds depends on meeting specific contractual milestones set for each work schedule through 2027.
The transition to stablecoins in decentralized network treasuries tends to lower sell pressure on the main asset during market downturns. This can reduce systemic volatility in the ecosystem by insulating operational funding from the fluctuations of Bitcoin and the broader crypto market.
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