Bitcoin (BTC) to Cardano (ADA) Bridge Demoed, Opening New Era of Inter-chain Transactions

A major step was taken in the blockchain world with the successful transfer of Bitcoin to the Cardano network without using a bridge or third-party service.

This innovation, achieved by BitcoinOS and xBTC, opens a new era of inter-chain transactions that are both secure and efficient.

Here’s how it works:

1. Bitcoin is locked up on the first layer of the Bitcoin blockchain.

2. The Bitcoin is then converted into xBTC tokens, which are sent directly from the BitcoinOS wallet to Sundial’s Cardano wallet.

3. To receive the xBTC tokens on Cardano, the Sundial protocol, a Layer 2 hybrid solution for Bitcoin and Cardano, is utilized.

4. Finally, the xBTC tokens are moved to a wallet belonging to ADA Handle, showcasing seamless integration within the Cardano ecosystem.

This process culminates in the burning of xBTC and the release of the original Bitcoin back onto the Bitcoin blockchain, completing the full journey without the traditional bridge mechanism.

The transfer was showcased on May 4, 2025, with contributions from Sundial, ADA Handle, and members of the Bitcoin and Cardano communities.

This development marks a significant advancement in Cardano’s capabilities, placing it as a central player in decentralized finance. By enabling direct Bitcoin transactions, Cardano opens the door for new DeFi applications and increases utility for Bitcoin holders.

Highlighting the importance of this integration, Charles Hoskinson, founder of Cardano, expressed that it is a step towards a more connected blockchain ecosystem. He stated, “We are aiming to have BTC support for staking, defi, and more.”

In addition to interoperability, BitcoinOS also prioritizes security. xBTC introduces a programmable Bitcoin format while remaining non-custodial, operating similarly to wETH on Ethereum. This programmability unlocks new possibilities for DeFi protocols and developers on Cardano to interact with Bitcoin in novel ways.

However, despite this technological breakthrough, Cardano’s native token, ADA, experienced a slight price drop. As of 2025, ADA is trading around $0.6585, showing a decrease of 2.86% in the last 24 hours and 5.79% in the last week.

This development comes amid a broader discussion on the future of blockchain technology. Charles Hoskinson recently mentioned that the industry is entering a new phase of development that should focus on scalable solutions to real-world problems.

BitcoinOS’s initiative addresses this pressing need by providing a secure and efficient method for interoperability, eliminating the traditional hurdles that have limited blockchain integration.

Moreover, with recent reports of more than $2 billion lost in crypto due to scams and hacks since 2022, highlighting the importance of robust security measures, xBTC offers an alternative approach that leverages zero-knowledge cryptography to ensure the verifiability and integrity of transactions.

Overall, these innovations not only improve security and efficiency in inter-chain transactions but also open up new opportunities in the DeFi ecosystem. By combining enhanced security and ease of integration, Cardano and BitcoinOS set a new standard in blockchain operations.