Sundial and Flow Partner to Bring Bitcoin Lending to Cardano

Sundial is joining forces with Flow to deliver secure and scalable Bitcoin lending on Cardano. By combining Sundial’s Layer 2 infrastructure with Flow’s lending protocol, the partnership creates new opportunities for both institutional and retail users.

Sundial: Advancing Bitcoin DeFi

Sundial is a UTXO Layer 2 for Cardano and Bitcoin, built on the open-source Midgard stack. It focuses on secure yield, institutional-grade reporting, and compliance-ready infrastructure, giving Bitcoin holders a direct route into Cardano’s DeFi ecosystem.

Flow: Lending on Cardano

Flow is a pooled-lending protocol where users can post ADA or Cardano-native tokens like SNEK as collateral to borrow ADA or USDM. Its isolated pool model keeps risk contained within each market, while perpetual loans allow borrowers to repay on their own terms. Liquidity providers earn yield, and Flow already works with USDM to expand stablecoin access.

Partnership Highlights

Together, Sundial and Flow will integrate to enable isolated BTC/ADA and BTC/USDM pools on Cardano.

Bitcoin DeFi: Direct, secure integration of Bitcoin into Cardano’s DeFi.

Isolated Pools: BTC lending markets with contained risk.

Institutional Features: Reporting and stronger liquidation buffers.

Scalable Liquidity: Competitive borrowing rates supported by USDM collaboration.

What This Unlocks

Users will be able to earn yield on Bitcoin, borrow ADA or USDM using BTC as collateral, and access tailored financial products. The partnership also opens the door to seamless interactions between Bitcoin and Cardano-native assets.

Next Steps

Sundial and Flow will begin platform integration and pilot BTC lending pools. With support from USDM and the Midgard stack, this collaboration is set to advance Bitcoin’s role in Cardano’s DeFi ecosystem.

All plans remain subject to technical validation, security review, market conditions, and regulatory requirements.

🔗 Learn more about Flow: beta.flowcardano.org

🔗 Explore Sundial: www.sundialprotocol.com