Charles Hoskinson, the founder of Cardano, is once again stirring the pot in the crypto space, this time reigniting his feud with Circle, the second-largest stablecoin issuer. In a recent post, Hoskinson criticized Circle for what he deemed its harmful impact on the industry, particularly during hard forks. According to Hoskinson, Cardano is better off without integrating Circle’s USDC stablecoin into its network, emphasizing the chain’s commitment to decentralization and autonomy.
I keep telling everyone how Circle operates and uses its monopoly to harm the market. What's worse than this outcome is actually having them on the chain. Imagine that for every hark fork, Circle gets to decide whether to support it or not. This is the lived reality for Ethereum… https://t.co/hBkIqDCsDG
— Charles Hoskinson (@IOHK_Charles) January 31, 2025
The controversy stems from Circle’s behavior during network upgrades, where it selectively decides whether to support a hard fork. Hoskinson pointed to the Ethereum network’s transition from Proof of Work (PoW) to Proof of Stake (PoS) in 2022 as a case in point. At that time, Circle publicly announced that USDC would only operate on Ethereum’s new PoS consensus and would not support any PoW forks. This stance, Hoskinson claims, exemplifies Circle’s tendency to prioritize its own interests over those of the networks it operates on.
Further fueling the fire, Hoskinson shared an insider revelation from the Cardano Foundation’s CEO, Frederik Gregaard. Gregaard disclosed a failed attempt to integrate USDC into Cardano during a meeting with Circle executives in the UAE. Hoskinson recalled that in 2021, the Cardano Foundation had turned down a $3 million offer from Circle to integrate USDC, only to see the offer balloon in value years later.
Just landed in the UAE to engage with local and global exchanges, discussing CNA and Cardano. Reflecting on last week at the WEF, where I once again met with executives from Circle (USDC). They were transparent about their perspective on strategic fit—or rather, the lack of… https://t.co/Alx0Z0e0Dg pic.twitter.com/8NpujAptjq
— Frederik Gregaard (@F_Gregaard) January 30, 2025
In contrast, Hoskinson seems more enthusiastic about integrating Ripple’s RLUSD stablecoin into the Cardano ecosystem. He recently discussed the potential partnership with Ripple executives, including CEO Brad Garlinghouse and CTO David Schwartz. With support from the XRP Ledger community, Hoskinson is now focusing on accelerating this collaboration, viewing it as a more beneficial path for Cardano than relying on Circle’s USDC.
Also Read: Cardano Price Eyes Recovery as Charles Hoskinson Burns $100M in ADA Meme Coins
As Hoskinson continues to make waves in the crypto community, his stance on Circle reflects broader debates around decentralization, ecosystem control, and the future of stablecoins in blockchain networks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.