Cardano founder Charles Hoskinson has revealed that Bitcoin DeFi has already attracted $500 million in soft commitments, with the figure potentially reaching the billion-dollar range as the initiative progresses.
He disclosed the progress during a recent appearance on The Breakdown podcast with David Gokhshtein, highlighting the growing interest in using Bitcoin for decentralized finance while preserving its core identity.
Bitcoin DeFi Draws $500 Million in Early Commitments
During the interview, Hoskinson said discussions with Bitcoin proponents have generated roughly $500 million in soft commitments for the Bitcoin DeFi project on Cardano. Moreover, he expects the figure to enter the 10-figure range, meaning at least $1 billion, as development and adoption advance.
For context, a soft commitment generally signals an intention to participate or invest, rather than funds already invested in a project.
Nonetheless, Hoskinson views the early interest as a sign that Bitcoin holders, particularly large holders, may have strong demand for DeFi opportunities that allow them to generate additional returns from their $BTC.
Institutions to Drive Early Demand for Bitcoin DeFi
According to Hoskinson, the initiative seeks to preserve Bitcoin’s core identity while adding a DeFi layer that could make $BTC more programmable and useful across decentralized applications.
Rather than modifying Bitcoin itself, the approach would leverage its security while allowing users to access DeFi opportunities across different blockchain ecosystems.
Meanwhile, Hoskinson expects institutional investors to play a major role in early adoption because they control significant Bitcoin reserves. Retail participation could then follow as the broader B2B2C market develops.
Hoskinson Highlights Bitcoin DeFi Technology Progress
Beyond the funding interest, Hoskinson also pointed to significant improvements in the technology behind the initiative.
He said that when development began, a Bitcoin DeFi proof was 40 GB in size. According to his latest figures, developers have reduced that size to just 28.1 MB. Similarly, he noted that the time required to validate a Bitcoin DeFi proof has fallen from about 354 seconds to 0.149 seconds.
The reported cost reduction is equally notable. Hoskinson said validating a transaction previously cost around $14,000, while the current figure stands at $37.
Notably, Hoskinson emphasized that the technology is open source, allowing developers and other participants to inspect and test the software rather than relying solely on his team’s claims.
After roughly a year of open-source development, he believes the technology could eventually make Bitcoin DeFi significantly easier to access. Ultimately, his vision is for Bitcoin holders to click a button and earn yield on their $BTC without changing Bitcoin itself.
