BitcoinOS reports that it has successfully executed the first cross-chain transfer of bitcoin without bridges, moving 1 BTC between the Bitcoin and Cardano blockchains without relying on traditional intermediaries.

The demonstration, carried out on mainnet, marks a crucial advancement in blockchain interoperability. By wrapping 1 BTC in xBTC—a programmable token secured through BitcoinOS's BitSNARK zero-knowledge proofs—the transaction avoided custodial bridges, reducing risks and latency.

BitcoinOS claims that xBTC was transferred to Cardano and back to Bitcoin, demonstrating seamless cross-chain functionality. BitcoinOS collaborated with the Sundial Protocol, a hybrid layer two (L2) solution between Bitcoin and Cardano, and Handle, the Cardano identity platform, to execute the transfer.

The process essentially involved wrapping BTC in xBTC on Bitcoin, moving it without bridges to Sundial's Cardano wallet, transferring it to Handle's wallet, and returning it to Bitcoin before unpacking it back into native BTC. Edan Yago, a lead contributor at BitcoinOS, stated that the demonstration proves that Bitcoin can acquire smart contract capabilities while remaining trustlessly anchored to its blockchain.

The capabilities of the demonstration turn "Cardano into a seamless DeFi layer for Bitcoin," he added, highlighting the implications for other UTXO-based chains. Sheldon Hunt, founder of the Sundial Protocol, said that the achievement was a turning point for decentralized interoperability. "It is a turning point for the entire blockchain ecosystem," he said. Jonah Peralta from Handle emphasized the importance of the advancement for Bitcoin's utility, stating that it unlocks smart contracts and scalability while maintaining Bitcoin's security.

The innovation allows BTC to participate in decentralized finance (DeFi) through bridge-less ecosystems, addressing long-standing challenges of custodial risk and fragmented liquidity.