Cardano launches Cardinal – the first DeFi protocol for Bitcoin

Charles Hoskinson, the founder of Cardano, just announced Cardinal – the first DeFi protocol for Bitcoin operating on the Cardano network. Cardinal uses the MuSig2 multisignature technology to support non-custodial cross-chain interactions, allowing users to directly use Bitcoin's UTXO for lending and staking on Cardano.

Notably, Cardinal also supports the use of Ordinals inscriptions as collateral, expanding the utility of Bitcoin assets within the Cardano ecosystem. This is the first solution that allows Bitcoin to participate in Cardano without the need for a third party to hold the assets.

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