Liqwid, a prominent decentralised finance (DeFi) protocol within the Cardano ecosystem, has unveiled its plan to integrate Bitcoin directly into its platform. This strategic move will enable Bitcoin holders to utilise their assets within Cardano’s DeFi space, without the need for wrapping or compromising custody, thanks to Cardano’s expanding cross-chain infrastructure.
Enabling Seamless Bitcoin Lending
In its latest update, Liqwid introduced an upcoming BTC onboarding interface. Through this portal, users will soon be able to connect their wallets, bridge Bitcoin into the Cardano network, and access supply and borrowing tools from one platform. According to Liqwid Labs, this feature aims to provide Bitcoin holders with new utility while maintaining native asset security.
The BTC integration aligns with a broader trend in the crypto industry toward enabling cross-chain asset functionality. Instead of relying on wrapped tokens or third-party custody, the project will support direct native Bitcoin integration through Cardano Native Tokens (CNTs).
Built for BTC: Infrastructure Already in Place
Liqwid’s infrastructure is ready for this next phase. The protocol already includes secure price oracles for Bitcoin, a modular system for adding new markets, and well-defined risk management parameters for asset collateralization.
Additionally, its on-chain governance framework allows the Cardano community to onboard assets quickly once they are technically ready. The team confirmed that as soon as a functional BTC-CNT bridge goes live, Bitcoin will become fully compatible with Liqwid’s offerings.
This move is driven mainly by recent innovations in Ordinals technology, which enable native Bitcoin inscriptions to be transferred across different blockchain networks. Input Output Global (IOG) has already demonstrated the ability to turn Bitcoin Ordinals into Cardano Native Tokens, maintaining BTC’s original properties while allowing greater utility.
No Wrapping, No Custody Compromises
Liqwid Labs emphasised that this integration will occur without using traditional wrappers. Instead, the project intends to support BTC as direct collateral in the Cardano ecosystem. Users will be able to lend their Bitcoin or use it to borrow stablecoins, such as USDA, DJED, or USDM.
Florian Volery, co-founder of Liqwid Labs, stated that the team is prepared to support any robust BTC-to-CNT bridge but will not officially endorse one until it goes live. This ensures that no shortcuts are taken and users retain full control of their assets.
Related article: Cardano Foundation to Convert $100M in ADA to Bitcoin and Stablecoins to Strengthen DeFi Ecosystem
Broader Cross-Chain Strategy: XRP to Join the Mix
The introduction of Bitcoin to Cardano is just one part of a broader cross-chain vision. Charles Hoskinson, the founder of Cardano, has revealed upcoming plans to integrate XRP into Cardano’s DeFi environment.
This development includes tools such as the Glacier Airdrop and support for Ripple’s RLUSD stablecoin, making XRP compatible with Cardano-native applications. Analysts such as George Tung of CryptosRus believe this demonstrates Cardano’s commitment to becoming a major cross-chain DeFi hub.
Conclusion: A Bold Step Toward DeFi Expansion
Liqwid’s upcoming support for Bitcoin-native lending marks a pivotal step in Cardano’s evolution. With the ability to interact with DeFi applications while maintaining asset sovereignty, Bitcoin holders will soon have new ways to put their capital to work. As interoperability becomes the new standard, Cardano appears well-positioned to lead the next wave of decentralised finance.
