LI.FI , a cross-chain liquidity provider, has announced its support for native Bitcoin swaps through ThorChain , according to an Aug. 14 statement shared with CryptoSlate .

This integration, powered by SwapKit, facilitates seamless Bitcoin transfers between Ethereum Virtual Machine ( EVM) chains and streamlines the exchange of Bitcoin for other cryptocurrencies on these networks.

Boosting adoption

LI.FI’s new feature aims to expand Bitcoin adoption and enable its use in DeFi and other financial innovations.

According to the firm:

“This development presents a significant opportunity for wallets, DeFi platforms, and enterprise applications to enhance their services by providing their users a secure and user-friendly method to purchase BTC or swap between it and other assets on EVM chains.”

The company also emphasized that this feature resolves difficulties encountered by EVM users when purchasing Bitcoin. Users can now directly buy Bitcoin or exchange it for other assets using their preferred wallets.

ThorChain has been integrated into LI.FI's supported bridges, providing users with optimal rates for token swaps and cross-chain transfers.

ThorChain is a decentralized cross-chain protocol enabling native swaps between different blockchains. Last year, it temporarily suspended operations to address the flow of illicit funds through its platform.

Bitcoin layer-2

LI.FI also plans to extend its support to Bitcoin Layer-2 (L2) solutions, aiming to enhance application flexibility and leverage the Bitcoin network’s growing potential.

Bitcoin L2s are protocols designed to solve Bitcoin scalability problems, boost transaction speeds, and lower transaction fees. Notably, some of these solutions introduce smart contract functionality to the blockchain, which substantially broadens its potential.

These protocols have gained significant popularity over the past year, collectively raising nearly $100 million during the second quarter of this year. However, Alex Thorn, head of research at Galaxy Digital , warned that these networks face significant long-term challenges due to the high cost of storing data on the Bitcoin blockchain.