- Cardano enables Bitcoin Defi with Lace Wallet, which enables the direct exchange from BTC in Cardano token.
- Charles Hoskinson emphasizes the growing importance of Cardano’s interoperability with Bitcoin and XRP for defi growth.
Cardano brings Bitcoin Defi to his ecosystem. At a recent Bitcoin conference in Las Vegas, it was shown how Lace Wallet Es enables Bitcoin owners to exchange BTC for cardano tokens such as Minswap. Cardano founder Hoskinson said:
“This is Bitcoin Defi’s age, heralded by Cardano. It opens up new opportunities for Bitcoin users to get in Defi without leaving their wallets.”
Bitcoin Defi comes to Cardano via Lace Wallet
The demonstration at the Bitcoin conference showed Handling the Lace Wallet at the exchange of Bitcoin in Cardano. The users opened The Minswap Dapp in the wallet, authorized transactions and closed the exchange of BTC in Minswap with just a few clicks.
Welcome to the age of Bitcoin DeFi brought to you by Cardano https://t.co/HplIBLK2bY
— Charles Hoskinson (@IOHK_Charles) May 27, 2025
The fees were paid in Bitcoin via a babel fee system managed by Fluid tokens. This is a trust-minimized fee absence mechanism that ensures Bitcoin owners control over their assets.
This is one of the first practical examples of the interoperability of Bitcoin and Cardano Defi over a single wallet interface. It enables Bitcoin users access to defi services such as rental, exchange, exchange and trade across chains and increases cross-chain liquidity and functionality. This is making Cardano Defi ahead by making Bitcoin liquidity flow into its Smart Contract ecosystem.
Extension of Cardano’s ability to cooperate
The partnership between Cardano and Bitcoin is further strengthened by the announcement by Romain Pellerin, CTO of Input Output Global, via the cardinal protocol. Cardinal should make it possible to wrap and use USDC stable coins that are issued on Bitcoin in cardano-smartcontracts.
This is done while the confidentiality by the Midnight protocol. Cardinal is designed for Bitcoin-Cardano Utxo wrapping and ordinal support and is approaching production maturity.
Cardano’s collaboration with Bitcoin also includes an ongoing partnership between Emurgo and Bitcoinos that focuses on enabling Smart Contract functions for Bitcoin developers by using the Cardano network and the liquidity of Bitcoin. According to recent reports, these efforts position Cardano as a blockchain that is able to unlock Bitcoin Defi.
In addition to Bitcoin, Cardano plans to integrate XRP support into Lace Wallet. Hoskinson confirmed the ongoing cooperation with the Ripple team while in a recent AMA meeting.
In this way, customers can save, send and receive XRP via the multi-chain wallet. Lace was introduced on the Cardano-Minnet in April 2023 and initially only supported native assets like ADA, but has now been expanded to include Bitcoin and soon also XRP.
Hoskinsons Vision
Charles Hoskinson sees the development as a step towards blockchain interalability. He emphasized that Cardano was more of a “peninsula” than an island and thus illustrated the ongoing efforts to combine several networks. According to Hoskinson, Cardano is working on several cooperations, including a CCIP CCIP CCIP CLAIN CHAIN CHAIN CHAIN CHAIN CHAIN and one with Ripple to integrate the RLUSD stable coin.
In a recent interview with the Etoro market analyst Sam North, Hoskinson noticed that the greatest growth for Cardano will come from Bitcoin and XRP integrations in the next five years. He quoted the potential of these cooperation to facilitate the RWA revolution and predicted a market size of $ 10 to $ 13 trillion in the next decade.
Hoskinson also emphasized the progress in the scalability of Cardano by Ouroboros Leios, a protocol to increase throughput. This positions Cardano competitive compared to other blockchains such as Solana.
According to the market data, Ada has recorded growth in the last periods, including an increase of 13 % in the past 90 days. In the last 24 hours, however, there was a slight decline of 2 %, since investors are waiting for the SEC’s decision over the ADA ETF application. As described in our last message, these technical developments and regulatory factors will influence the course development of ADA.
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