{"id":40546,"date":"2025-06-10T11:35:41","date_gmt":"2025-06-10T11:35:41","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/10\/cardano-unveils-cardinal-to-connect-bitcoin-users-to-334m-defi-ecosystem\/"},"modified":"2025-06-10T11:35:41","modified_gmt":"2025-06-10T11:35:41","slug":"cardano-unveils-cardinal-to-connect-bitcoin-users-to-334m-defi-ecosystem","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/10\/cardano-unveils-cardinal-to-connect-bitcoin-users-to-334m-defi-ecosystem\/","title":{"rendered":"Cardano unveils Cardinal to connect Bitcoin users to $334M DeFi ecosystem"},"content":{"rendered":"<div><\/div>\n<p>Cardano has launched Cardinal, a new protocol aimed at connecting Bitcoin to the Cardano decentralised finance (DeFi) ecosystem. <\/p>\n<p>The announcement, made by Cardano founder Charles Hoskinson on 9 June during the Bitcoin 2025 conference, marks a strategic shift to draw liquidity from Bitcoin\u2019s vast network into Cardano\u2019s smart contract infrastructure. <\/p>\n<div class=\"wp-block-kevinbatdorf-xeet-wp xeet-wp\">\n<div class=\"react-tweet-theme Prh5YO6Z7gkcGwVjnX1Q\">\n<article class=\"y3vyxk0KOdMgcSTtzERK\">\n<div class=\"lXRMjX2KYR7IZSOZPFbm\"><a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\" class=\"nkzum3vS9EE0UMk6wIwD\" target=\"_blank\" rel=\"noopener noreferrer\"><\/p>\n<div class=\"gxuhzv6slGlIBy5JFjVm\"><\/div>\n<div class=\"gxuhzv6slGlIBy5JFjVm\">\n<div class=\"jM__a2FZ4FtvadsBSIC5\"><\/div>\n<\/div>\n<p><\/a><\/p>\n<div class=\"BwMePHrH3rvsmYE498nW\"><a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\" class=\"oDvOSSsrnTspryAL9YVt\" target=\"_blank\" rel=\"noopener noreferrer\"><\/p>\n<div class=\"YqFZOCD996i_gAbVzqfJ\"><span title=\"Charles Hoskinson\">Charles Hoskinson<\/span><\/div>\n<div class=\"k4aQ6nZmsk6GjbvjPKss FgA7vJPvpWgsyInO1FMI\"><\/div>\n<p><\/a><\/p>\n<div class=\"T65hgE51dyqUMzAY5hl0\"><a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\" class=\"jg4rjgPtL89uoWZw81FG\" target=\"_blank\" rel=\"noopener noreferrer\"><span title=\"@IOHK_Charles\">@IOHK_Charles<\/span><\/a><\/p>\n<div class=\"IulIEDncuBnezCKlPUfn\"><span class=\"f9i0GrOk4HWCqDStzGHE\">\u00b7<\/span><a href=\"https:\/\/twitter.com\/intent\/follow?screen_name=IOHK_Charles\" class=\"X9KF8bvQvjpxMkEUAQSg\" target=\"_blank\" rel=\"noopener noreferrer\">Follow<\/a><\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\" class=\"VAKgDYwbCPjVtzvR7vsi\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"View on Twitter\"><\/a><\/div>\n<p class=\"AdGEHCYjGQTkPV_D5imj\"><span>Welcome to the first Bitcoin DeFi protocol developed for Cardano<\/span><\/p>\n<div class=\"_0kiDv1j1JHI8CF0Ntb_\"><a class=\"PF6M5QdjvCYeUIeL82Pw\" href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"10:48 PM \u00b7 Jun 9, 2025\">10:48 PM \u00b7 Jun 9, 2025<\/a><a class=\"EUWNvie68q0hB7x9gYil\" href=\"https:\/\/help.twitter.com\/en\/twitter-for-websites-ads-info-and-privacy\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"Twitter for Websites, Ads Information and Privacy\"><\/a><\/div>\n<div class=\"r1nP5SJS7VNmWTX19Auq\"><a class=\"gcUKEvUouWctDVs4Uni5\" href=\"https:\/\/twitter.com\/intent\/like?tweet_id=1932125166521164006\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"Like. This Tweet has 2.0K likes\"><\/p>\n<div class=\"EYp9rp32FVnHEztzLqMG\"><\/div>\n<p><span class=\"aMeAuAqW2H34ePc2jorL\">2.0K<\/span><\/a><a class=\"We700JQVK913TW5TZQk6\" href=\"https:\/\/twitter.com\/intent\/tweet?in_reply_to=1932125166521164006\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"Reply to this Tweet on Twitter\"><\/p>\n<div class=\"SXNJIS9giXWKxuUsSwXx\"><\/div>\n<p><span class=\"qAurmX5F17a0m0GbrhOq\">Reply<\/span><\/a><button type=\"button\" class=\"EDcxfgdhQDFSaBs5yAxC\" aria-label=\"Copy link\" data-xeet-url-to-copy=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\"><\/p>\n<div class=\"O1W4EuB8WU92_ex7pGQT\"><\/div>\n<p><span class=\"ovn4FbJMqbXsfiK7gvth\" data-copy-text=\"{&quot;copied&quot;:&quot;Copied!&quot;,&quot;copyAllText&quot;:&quot;Copy link to Tweet&quot;}\">Copy link<\/span><\/button><\/div>\n<div class=\"cjgWV81BwLW_tK8FicCg\"><a class=\"tczCx_QJsiI5O2NPUrfI\" href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1932125166521164006\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"LW1dI56xN0L7kAXJota7\">Read 64 replies<\/span><\/a><\/div>\n<\/article>\n<\/div>\n<\/div>\n<p>Cardinal enables users to lend, borrow, and stake Bitcoin without leaving the native Bitcoin chain or using traditional custodians. <\/p>\n<p>The launch comes as Cardano\u2019s DeFi total value locked (TVL) has dropped from $415 million in May to $334 million as of 10 June, <a target=\"_blank\" href=\"https:\/\/defillama.com\/chain\/cardano\">according to DefiLlama<\/a>.<\/p>\n<h2 class=\"wp-block-heading\">Bitcoin DeFi integration without bridges or custodians<\/h2>\n<p>Cardinal is designed to bring Bitcoin into the DeFi space by wrapping unspent transaction outputs (UTXOs) and converting them into tokens that are pegged 1:1 with Bitcoin. <\/p>\n<p>This lets Bitcoin holders use their assets on Cardano\u2019s platform without relying on centralised bridges or custodians. The process is trust-minimised, allowing users to reclaim their Bitcoin at any time through a secure and verifiable method.<\/p>\n<p>Unlike traditional wrapped BTC protocols that often depend on a central authority, Cardinal operates using MuSig2, a multi-signature cryptographic scheme. <\/p>\n<p>This technique enables multiple participants to cooperatively sign transactions, while maintaining Bitcoin\u2019s security guarantees. <\/p>\n<p>As long as at least one party in the network behaves honestly, the system remains secure, and the wrapped Bitcoin stays locked on the native chain.<\/p>\n<h2 class=\"wp-block-heading\">No rehypothecation, more asset control for users<\/h2>\n<p>One of Cardinal\u2019s main differentiators is its stance on rehypothecation. In many financial systems, custodians re-use deposited assets\u2014often without full user awareness. <\/p>\n<p>Cardinal eliminates this risk by preventing intermediaries from controlling user assets, giving holders complete visibility and ownership throughout the DeFi process.<\/p>\n<p>Cardinal\u2019s smart contract framework avoids unnecessary centralisation by leveraging BitVMX\u2014an off-chain computation protocol. <\/p>\n<p>BitVMX allows users to perform complex operations involving Bitcoin, without needing to compromise on decentralisation. <\/p>\n<p>When paired with Cardano\u2019s Plutus smart contracts, this configuration allows seamless asset movement between the two blockchains.<\/p>\n<h2 class=\"wp-block-heading\">Live BTC-Cardano transfer demo showcases use case<\/h2>\n<p>At the Bitcoin 2025 event, Input Output (IO), the research and development firm behind Cardano, demonstrated a bridgeless BTC-to-Cardano asset transfer using Cardinal and BitVMX. <\/p>\n<p>The live demonstration served as a proof-of-concept, underscoring Cardinal\u2019s capacity to bring Bitcoin-native liquidity to Cardano\u2019s DeFi platforms.<\/p>\n<p>This move comes at a time when Cardano is aiming to boost its TVL and regain DeFi traction. According to DefiLlama, Cardano\u2019s DeFi market has seen a decline in locked value since its May peak. <\/p>\n<p>By offering Bitcoin users direct DeFi access without leaving their native network, Cardinal could provide the liquidity injection needed to revive activity on the Cardano chain.<\/p>\n<h2 class=\"wp-block-heading\">Market impact and future roadmap<\/h2>\n<p>Cardano\u2019s DeFi infrastructure has historically struggled to match Ethereum\u2019s or Solana\u2019s dominance. However, Cardinal represents a new model for integrating Bitcoin in a non-custodial, decentralised way. <\/p>\n<p>The protocol not only enables secure lending and borrowing with wrapped Bitcoin, but also introduces interoperability across ecosystems\u2014one of the key bottlenecks for DeFi expansion.<\/p>\n<p>Input Output has not yet announced a full-scale rollout date but plans to continue testing Cardinal under real-world conditions. <\/p>\n<p>The team will likely focus on increasing Cardinal\u2019s adoption among Bitcoin users looking for DeFi exposure without compromising on custody or decentralisation.<\/p>\n<p>The move also reflects a broader trend in the DeFi space, where newer protocols are prioritising asset sovereignty, cryptographic security, and interoperability. <\/p>\n<p>If successful, Cardinal could set a precedent for how major blockchain ecosystems integrate Bitcoin, and how Bitcoin evolves from a passive store of value to an active player in decentralised finance.<\/p>\n<p>The post <a href=\"https:\/\/invezz.com\/news\/2025\/06\/10\/cardano-unveils-cardinal-to-connect-bitcoin-users-to-334m-defi-ecosystem\/\">Cardano unveils Cardinal to connect Bitcoin users to $334M DeFi ecosystem<\/a> appeared first on <a href=\"https:\/\/invezz.com\/\">Invezz<\/a><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cardano has launched Cardinal, a new protocol aimed at connecting Bitcoin to the Cardano decentralised finance (DeFi) ecosystem. The announcement, made by Cardano founder Charles Hoskinson on 9 June during the Bitcoin 2025 conference, marks a strategic shift to draw liquidity from Bitcoin\u2019s vast network into Cardano\u2019s smart contract infrastructure. Charles Hoskinson @IOHK_Charles \u00b7Follow Welcome <\/p>\n","protected":false},"author":1,"featured_media":40547,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-40546","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=40546"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/40547"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=40546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=40546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=40546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}