Cardano unlocks $1.3T Bitcoin liquidity with BitcoinOS bridge integration

Cardano taps BitcoinOS to integrate Bitcoin liquidity into its DeFi ecosystem using zero-knowledge cryptography for secure cross-chain functionality.

Cardano is set to gain access to $1.3 trillion in Bitcoin liquidity for its decentralized finance (DeFi) ecosystem through a new integration with BitcoinOS (BOS), a Bitcoin smart contract platform.

According to a press release shared with Cointelegraph, the integration aims to allow Cardano users to securely access Bitcoin BTC$68,187 without intermediaries in a move toward improved cross-chain functionality and DeFi expansion.

Zero-knowledge (ZK) cryptography will play a key role in the collaboration, facilitating a trustless method where BOS can integrate BTC assets into Cardano through verified transactions that do not involve third parties.

BTC liquidity on Cardano

The BOS Grail bridge is a key integration component, providing a trustless connection powered by BOS’ ZK BitSNARK verification protocol.

ZK technology allows BTC transactions and assets to be bridged onto Cardano’s blockchain, benefiting Cardano-native DeFi projects without sacrificing decentralization or security.

With the BOS integration on Cardano, Bitcoin’s market capitalization of around $1.3 trillion at the time of writing will become accessible.

Chart depicting Bitcoin’s market capitalization, currently around $1.3 trillion. Source: CoinMarketCap

Crosschain capabilities 

According to a press release shared with Cointelegraph, Emurgo, the founding entity behind Cardnao’s Web3 adoption efforts, views the collaboration as a step toward a more interconnected space.

Ken Kodama, CEO of Emurgo, explained that the integration has “the potential to unlock new cross-chain capabilities” and could help drive the adoption of DeFi.

Kodama said that BOS’ bridge and ZK tech could “further strengthen Cardano” by opening access for the layer-1 blockchain’s “users, projects, and developers” to a secure and trustless path to BTC.

The BitcoinOS Grail bridge

On Sept. 10, BOS partnered with the layer-2 (L2) scaling solution Merlin Chain to deploy the BitcoinOS Grail bridge and improve cross-chain transactions without centralized trust mechanisms.

Merlin Chain founder Jeff Yin told Cointelegraph that the partnership would provide users with a “trustless, decentralized” bridge for “Bitcoin-native assets.”

The bridge establishes ZK-proof-powered trustless bridging written directly onto the BTC blockchain, eliminating the need for centralized security measures such as multisig or multiparty computation.

Yin described the development as “just the beginning” as the collaboration pushes toward a more “interoperable Bitcoin ecosystem.”