Wrapped bitcoin token cBTC has gone live on the Cardano testnet as the project’s developers seek to attract bitcoin (BTC) holders to the nascent Cardano decentralized-finance, or DeFi, network.

Users can now create cBTC tokens using the anetaBTC Protocol and use them to fund, trade, or provide liquidity for Cardano’s test network. These wrapped tokens represent bitcoin 1:1, but they are on the Cardano Blockchain.

Wrapped tokens allow users to easily transfer value between blockchains that lack interoperability. This allows them to access multiple DeFi protocols, without having to use the native tokens for each protocol.

Since the beginning of 2023, various DeFi enhancements helped to boost the use of these protocols on Cardano. The total value of platforms based on Cardano has risen from less than 50 million dollars to more than $150 million.

The TVL for Cardano is dominated by DeFi exchanges like Minswap Indigo, Wingriders, and Wingriders. Stablecoin Djed has attracted over $15 million in funding since its launch early in March.

Parikshit Miishra is the editor.