Cardinal has emerged as the first non-custodial Bitcoin decentralized finance (DeFi) protocol operating on the Cardano blockchain. The platform enables Bitcoin holders to utilize their Bitcoin UTXOs and Ordinals inscriptions as collateral to access Cardano’s on-chain lending and staking markets.
Leveraging MuSig2 multi-signature technology, Cardinal facilitates secure cross-chain transactions without requiring third-party custody of assets. The protocol further integrates BitVMX to enable interoperability with external blockchain networks including Ethereum and Solana, expanding its cross-chain capabilities.
Planned future upgrades will incorporate zero-knowledge proof technology to enhance liquidity options and strengthen security protocols. This development marks a significant step in connecting Bitcoin’s ecosystem with Cardano’s DeFi infrastructure through decentralized collateral mechanisms.