Liqwid, a major DeFi protocol built on Cardano, has revealed a significant step toward expanding decentralized finance capabilities by integrating Bitcoin (BTC) directly into the Cardano ecosystem. This groundbreaking development allows users to access Bitcoin lending and borrowing on Cardano without converting BTC into wrapped tokens, marking a key milestone in blockchain interoperability.
The move highlights Cardano’s growing role in cross-chain innovation and comes as the industry increasingly seeks solutions that preserve the original properties of major assets like Bitcoin while enabling broader DeFi participation.
Traditionally, when users wanted to use Bitcoin in DeFi applications, they were forced to convert BTC into a “wrapped” version, such as wBTC on Ethereum. This method involved custodians and third-party risks, often compromising decentralization and security.
Liqwid’s approach changes that. The protocol is working to bring Bitcoin onto Cardano as a Cardano Native Token (CNT) through a BTC-to-CNT bridge. This eliminates the need for wrapping or asset conversion, enabling users to retain full custody of their Bitcoin while still being able to supply it as collateral or use it in lending markets.
According to Liqwid Labs, this integration will be made possible via a dedicated BTC onboarding page. Users will be able to connect their Bitcoin wallets, bridge BTC into the Cardano network, and access lending and borrowing options—all from one simple interface.
Liqwid has already prepared its infrastructure to support native Bitcoin lending on Cardano. The platform includes secure price oracles for Bitcoin, a modular framework for listing new markets, and robust risk assessment models for collateralized assets.
This infrastructure, combined with Liqwid’s on-chain governance system, allows the Cardano DeFi community to quickly approve and implement the addition of new tokens, including BTC. Once a secure and functional BTC-to-CNT bridge goes live, the integration is expected to roll out smoothly.
Importantly, Liqwid has confirmed that it won’t endorse any specific BTC bridge until one proves secure and is live on the network. This careful approach emphasizes user safety and asset integrity.
Once Bitcoin is available as a Cardano Native Token, users will be able to supply it as collateral on Liqwid and borrow stablecoins like USDA, USDM, or DJED. This setup enables users to unlock liquidity without selling their BTC, a strategy favored by long-term holders who want capital efficiency without giving up exposure to potential BTC price appreciation.
Because this integration does not involve wrapping or custody with third parties, it maintains the original security, immutability, and decentralization of the Bitcoin network. This makes it ideal for users who want access to DeFi without compromising on core crypto values.
Cardano’s ambition doesn’t stop with Bitcoin. Charles Hoskinson, co-founder of Cardano, has recently hinted at plans to deepen interoperability with XRP, another major crypto asset.
Projects in development include DeFi tools that integrate XRP, stableco in collaborations (such as Ripple’s RLUSD), and initiatives like the Glacier Airdrop. These moves signal Cardano’s broader strategy to create a seamless multi-chain DeFi environment where users can access leading assets across networks—all without centralized intermediaries.
Liqwid’s integration of Bitcoin could be a turning point for both Cardano and the broader DeFi space. If successful, it will be one of the first implementations of BTC in DeFi without wrappers, custody risks, or trade-offs.
For users, it means they can access lending opportunities and liquidity while holding native BTC. For the ecosystem, it’s a showcase of Cardano’s capacity to lead the next generation of decentralized finance—one that prioritizes interoperability, user control, and long-term sustainability.
As the DeFi space matures, the demand for seamless cross-chain experiences is growing. Liqwid’s Bitcoin integration marks a bold step toward a future where assets like BTC can be used across multiple networks without sacrificing decentralization or security.
With the infrastructure ready and the strategy in place, Cardano is positioning itself as a serious player in the next phase of crypto finance. If the BTC-to-CNT bridge proves successful, it could open the door to a wave of new users and developers looking to explore the possibilities of truly decentralized, multi-chain finance.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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