HomeCrypto NewsMarketLiqwid to Bring Bitcoin to Cardano as a Native Token for Lending Access

Liqwid to Bring Bitcoin to Cardano as a Native Token for Lending Access

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Liqwid, a leading Cardano DeFi protocol, has announced preparations to integrate Bitcoin into its ecosystem through a dedicated BTC onboarding page. 

This move comes as the Cardano network advances cross-chain capabilities, enabling Bitcoin users to interact with decentralized finance tools while retaining the native security of their assets. 

According to recent updates from Liqwid Labs, users will soon be able to connect wallets, bridge Bitcoin, and access supply and borrowing features through a unified interface. 

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This development aligns with the broader trend of bringing Bitcoin into interoperable environments without traditional wrapping or asset conversion.

BTC-Ready Infrastructure and CNT Support in Focus

Liqwid has already equipped its infrastructure to accommodate Bitcoin-native integration. The protocol features secure Bitcoin price oracles, a modular architecture for market expansion, and risk frameworks for asset collateralization. 

Additionally, its on-chain governance system facilitates the streamlined onboarding of new tokens. These elements make it possible for the platform to quickly list Bitcoin as a Cardano Native Token (CNT) once bridging mechanisms go live.

It bears mentioning that recent advancements in Ordinals technology set the stage for this push, allowing Bitcoin to be inscribed and bridged to the Cardano network. Input Output Global (IOG) showcased the potential for Bitcoin Ordinals to become CNTs, allowing users to retain BTC’s original security characteristics.

This eliminates the long-standing dilemma where holders must choose between self-custody and asset utility. With a functioning bridge, Bitcoin can be used across Cardano’s DeFi protocols, including Liqwid, without compromising asset integrity.

No Wrappers and No Trade-Offs

According to Liqwid Labs, the goal is to enable users to supply Bitcoin as collateral and borrow stablecoins such as USDA, USDM, and DJED. This setup offers liquidity access while maintaining BTC exposure.

However, Liqwid Labs co-founder Florian Volery confirmed it will support any functional BTC-to-CNT bridge but will refrain from endorsing any until one is officially live. There will be no wrappers and no trade-offs involved in the integration process.

Further Cross-Chain Strategy with XRP Integration

In parallel with the BTC-CNT initiative, Cardano’s ecosystem is expanding its cross-chain strategy. Notably, Charles Hoskinson, Cardano’s co-founder, recently revealed plans to enhance XRP interoperability.

This effort includes the development of XRP-integrated DeFi tools, the Glacier Airdrop, and potential adoption of Ripple’s RLUSD stablecoin. George Tung, co-founder of CryptosRus, described the strategy as a comprehensive step toward broad cross-chain compatibility across the Cardano network.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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