Emily Walker
Charles Hoskinson, the founder of Cardano and CEO of Input Output Global (IOG), recently shared plans through a series of posts on X, aiming to merge Bitcoin with a decentralized finance (DeFi) framework by 2025. The initiative intends to utilize Bitcoin’s liquidity and develop a layer-2 type network.
Schedule for Integrating Bitcoin DeFi on Cardano
Hoskinson mentioned, “The integration of Bitcoin DeFi is a key objective for IOG in 2025, collaborating with partners such as Fair Gate Labs along with various community projects and wallets. I’ve tasked the team to prepare a significant demo by May 2025. It’s a considerable endeavor, but the potential is vast, and it’s time to #AwakenTheSleepingGiant Bitcoin.”
This declaration ignited a discussion regarding the future incorporation of BitcoinOS (BOS), a smart contract system aiming to enhance Bitcoin’s capabilities with DeFi platforms. On October 24, Emurgo, the blockchain’s commercial branch, revealed plans to connect the BOS Grail bridge with Cardano in a collaboration with BTCOS, the developers of Grail.
Regarding Hoskinson’s announcement about Fair Gate Labs working on the Bitcoin DeFi bridge, Angry Crypto Show (@angrycryptoshow) expressed doubts: “Why are we not building on the momentum we had with BitcoinOS or backing Sundial, etc.?”
In defense, Hoskinson pointed out Fair Gate Labs’ significance, asserting, “Fairgate developed the technology that BitcoinOS is founded on and doesn’t need a separate token for operation. Only Bitcoin will be utilized for cross-chain transactions.”
A community member, J₳zzwhistlΣ (@jazzwhistle), voiced concerns about the implications of not using BitcoinOS, questioning how this would impact ADA within a multi-chain BTC DeFi framework.
Hoskinson countered these worries by accentuating the broader integration prospects: “We maintain a multichain ecosystem via Midnight, linking to Ethereum, Solana, Avalanche, XRP, and beyond. Switching to BOS could dilute our liquidity as it may prioritize new chains during the integration process.”
Edan Yago, the founder of BitcoinOS, responded to Hoskinson’s apprehensions, assuring, “BOS is committed to Cardano. We are working closely to ensure BOS’s integration with Cardano. Why wouldn’t you want us to develop on it?”
Hoskinson encouraged a firmer commitment to the ecosystem, stating, “Then reinforce your ties to Cardano and establish yourself as a native token.”
Yago expressed openness to this idea, suggesting potential plans: “I anticipate BOS could become part of Cardano. Are you interested in collaborating on that? BOS is designed as a recursive token specifically for Bitcoin, and it could provide a unique token type for Cardano.”
The potential introduction of BitcoinOS and the BOS Grail bridge into the ADA ecosystem could significantly facilitate secure cross-chain transactions through zero-knowledge cryptography, allowing DeFi platforms on Cardano access to Bitcoin’s liquidity, thus enhancing its ecosystem and reach.
As of the latest update, ADA was valued at $1.01.