Liquidium, the developer of Bitcoin’s leading peer-to-peer lending protocol, today launched its cross-chain Loans product. It allows trustless lending and borrowing across Bitcoin, Ethereum, and Solana without the use of wrapped tokens or centralized bridges. The announcement was made at the Bitcoin 2025 Conference.
The cross-chain protocol is powered by Internet Computer’s (ICP) Chain Fusion technology. It offers a native Bitcoin yield and collateral mechanism that connects directly with Ethereum’s USDT or Solana’s USDC liquidity pools, without any custodial risk.
Liquidium Brings Native-to-Native Lending Without Wrapping
Until now, borrowing against native Bitcoin and receiving native assets on other blockchains required using wrapped tokens (like WBTC) or centralized bridges—structures that introduce counterparty risk and technical complexity. Liquidium’s new protocol breaks that paradigm.
With Chain Fusion, users can now post Layer 1 Bitcoin as collateral and borrow native stablecoins on Ethereum or Solana. The process is seamless, with no need to bridge or wrap assets. Users receive borrowed assets directly into their MetaMask or Phantom wallets, while keeping their BTC safely stored on-chain in wallets like Ledger or Xverse.
Robin Obermaier, Liquidium CEO & Co‑Founder, said, “Bitcoin was built for self‑sovereignty, not surrendering keys to centralized bridges. With Liquidium, users don’t have to think about ‘which chain’ at all—we’ve abstracted the plumbing so there’s just the blockchain. Deposit native BTC, receive USDT on Ethereum, USDC on Solana, or any asset you need, quickly and securely.”
Targeting the Untapped Potential of Idle Wrapped Bitcoin
Liquidium’s timing comes as DeFi protocols on Ethereum and Solana continue to balloon. Protocols like Aave, Morpho, and Kamino now control tens of billions of dollars in total value locked. Yet over $4.3 billion in wrapped BTC remains idle on Ethereum DeFi, earning minimal returns, according to Aave’s May 2025 Reserve Overview.
This vast pool of underutilized capital represents a clear market opportunity.
Liquidium, which has already processed over $430 million in loans on Bitcoin’s Layer 1 and facilitated nearly 100,000 loans, is aiming to address this unmet demand. Over 3,100 BTC in Ordinals-based loans alone highlight the appetite for Bitcoin-native lending solutions.
Rebranding and Market Expansion
Liquidium also announced that the original Layer‑1 Bitcoin lending app—focused on Bitcoin Ordinals, BRC-20s, and Runes—has been rebranded as LiquidiumWTF, creating a distinct identity for niche Bitcoin-native users. The new cross-chain product will serve a broader audience across the multi-chain DeFi landscape.
The company plans to launch a closed beta in Q3 2025, followed by a public release later this year. Users can join the waitlist at liquidium.fi.
“Liquidium’s implementation demonstrates how Chain Fusion can unlock entirely new DeFi primitives,” said Lomesh Dutta, VP of Growth at the DFINITY Foundation. “This is exactly the kind of innovation we envisioned—bringing Bitcoin’s security and liquidity to the broader blockchain ecosystem.”
“Liquidium’s implementation demonstrates how Chain Fusion can unlock entirely new DeFi primitives,” said Lomesh Dutta, VP of Growth at DFINITY Foundation. “This is exactly the kind of innovation we envisioned – bringing Bitcoin’s security and liquidity to the broader blockchain ecosystem.”
Strategic Backing and Technical Strength
Founded in 2022, Liquidium has raised $4 million across pre-seed and seed rounds. Its backers include the Stacks Foundation, CMS Holdings, Portal Ventures, Newman Capital, Bitcoin Startup Lab, and UTXO Management.
Liquidium’s use of Chain Fusion—a product of the DFINITY Foundation’s Internet Computer protocol—sets it apart. The technology allows atomic, trust-minimized execution across chains without intermediary layers, offering a radically more secure and user-friendly experience than today’s fragmented bridging systems.
As Bitcoin increasingly becomes a capital base rather than a transactional currency, protocols like Liquidium are laying the groundwork for BTC’s productive deployment in the DeFi economy. The combination of non-custodial design, native asset support, and cross-chain functionality could position Liquidium as a category-defining protocol.
The closed beta will be a critical test for adoption, especially among users previously reluctant to lock BTC in Ethereum smart contracts or custodial bridge systems.
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Image Credits: Liquidium
