Cardano Joins BTCFi Frontier: Bitlayer & Sundial Forge BitVM Bridge via Strategic Partnerships
10 May 2025
Positioned as the 10th-largest blockchain by market capitalization, Cardano has long been a hotbed for decentralized innovation. Now, it’s poised to dive headfirst into Bitcoin innovations and the surging BTCFi wave.
In a groundbreaking move to foster blockchain synergy, Bitlayer, the trailblazing team behind the first BitVM implementation, has inked a strategic partnership with Sundial, a top optimistic Rollup Layer 2 in the Cardano ecosystem. Together, they’re set to design a cutting-edge BitVM-based bridge. This bridge promises seamless transfer of Bitcoin liquidity into Cardano and viceversa, signaling a potential BTCFi wave.
Cardano, a proof-of-stake blockchain platform, boasts over 1,990 projects building applications on it. With BitVM Bridge, Cardano is on the cusp of gaining trust-minimized access to Bitcoin’s massive liquidity pool.
A Unified Vision for Bitcoin and Cardano
The rift between Bitcoin and other crypto ecosystems has long plagued the digital asset industry. Enter the BitVM Bridge as a game — changing solution to unite these two giants. It envisions a new digital value ecosystem where the whole exceeds the sum of its parts.
Through this partnership, Bitlayer and Sundial aim to:
- Empower Cardano users to harness Bitcoin’s security and liquidity.
- Enable BTC holders to leverage Cardano’s high-throughput infrastructure and decentralized applications.
- Boost cross-network composability for an interconnected blockchain future.
“This collaboration with Sundial marks a significant step forward in bridging the Bitcoin and Cardano ecosystems. By enabling trust-minimized access to Bitcoin liquidity for Cardano, we’re unlocking new opportunities for both communities. ” Bitlayer co-founder Charlie Hu stated.
“At Sundial, we always believe in the power of collaboration to push the boundaries of what’s possible in decentralized finance. Partnering with Bitlayer represents a pivotal step forward for the entire crypto ecosystem. Cardano’s UTXO smart-contracts and cutting edge decentralized applications paired with Bitcoin’s unmatched liquidity and decentralization create a uniquely powerful synergy. By bridging these two ecosystems, we’re unlocking new opportunities for developers, liquidity providers, and users alike. This partnership lays the groundwork for seamless interoperability and increased utility, benefiting both communities in enormously meaningful ways,” said Sheldon, CEO of Sundial.
Rapid Growth
The narrative is shifting from competing chains causing fragmented liquidity and users to a unified ecosystem with Bitcoin at its core. Bitlayer and Sundial’s partnership is a key driver of this shift.
Unlike prior solutions, the BitVM bridge needs no trust in third parties to function securely during asset transfers between chains. Bitlayer is at the forefront of integrating Bitcoin-backed assets across more ecosystems, backed by partnerships with leading DeFi protocols.
Interest in the BitVM Bridge has surged in recent months. Bitlayer BitVM bridge has formed partnerships with major blockchains like Base, Starknet, Arbitrum, Sonic, Plume Network, and Sundial, significantly enhancing Bitcoin’s liquidity across these dynamic ecosystems. Stay tuned for updates on collaborators and upcoming BTCFi integrations over the next few months.
About Sundial
Sundial is an optimistic Rollup Layer 2 taking ADA and BTC to the next level. Built on Cardano’s secure eUTxO model and Ouroboros consensus, Sundial processes transactions off-chain to enhance speed, reduce costs, and improve scalability.
Learn more:
https://www.sundialprotocol.com/
About Bitlayer
Bitlayer is pioneering the first BitVM implementation. By merging unparalleled security with a lightning-fast smart contract engine, Bitlayer unlocks the full potential of Bitcoin DeFi.
Bitlayer is committed to an open and collaborative Bitcoin DeFi ecosystem, working with partners to advance BTC Bridge, Bitcoin Layer 2 and BitVM stack, driving the future of secure, scalable, and programmable Bitcoin finance.
Learn more:
