Liqwid Sets Stage to Bring Native Bitcoin Lending to Cardano Ecosystem

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.

🧵 Bridging Bitcoin to Cardano: What it Means for DeFi—and How Liqwid Is Ready
1/ The Ordinals Revolution Is Bigger Than You Think
IOG recently showcased a major leap: Bitcoin Ordinals on Cardano.
This opens the door for BTC to become a Cardano-native token (CNT) – inscribed,… pic.twitter.com/UZEzbxE2BR
— Liqwid Labs (@liqwidfinance) June 23, 2025

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.

4/ Use Your BTC Without Selling It
Once the bridge is live, BTC holders will be able to:
✅ Supply BTC as collateral
✅ Borrow stablecoins (e.g. USDA, USDM, DJED)
✅ Maintain BTC exposure while unlocking liquidity
✅ Rely on a proven protocol with on-chain governance,
“Liqwid…
— Liqwid Labs (@liqwidfinance) June 23, 2025

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.

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.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.