funnAI has begun testing native Bitcoin integration, opening the door to direct BTC interactions within its application as development work continues on the Internet Computer.
The update introduces a series of wallet features designed to connect Bitcoin liquidity with on-chain services on ICP, using DFINITY’s chain-key Bitcoin and ckBTC. While still in testing, the rollout signals funnAI’s intention to make Bitcoin a first-class asset inside its ecosystem rather than something accessed through external bridges.
One of the headline changes is Sign In With Bitcoin, which allows users to log in using a Bitcoin wallet alongside existing options such as Internet Identity and NFID. Support is currently limited to UniSat wallets, with further compatibility expected as testing progresses. The approach positions a Bitcoin wallet as a usable identity layer on ICP, an idea that developers across the ecosystem have been exploring as Bitcoin-native applications gain momentum.
The wallet interface is also being updated to display native Bitcoin balances directly. Users can view their BTC holdings, send and receive Bitcoin from the dashboard, and use QR codes or one-click address copying for transactions. This brings familiar Bitcoin wallet behaviour into an ICP-based environment, reducing the need to move between tools.
Conversion between BTC and ckBTC sits at the centre of the update. On the inbound side, users can send Bitcoin from their wallet and track confirmations in real time, with ckBTC minted automatically once the required confirmations are complete. The full process currently takes around an hour, reflecting standard Bitcoin settlement times rather than ICP finality.
Withdrawals work in the opposite direction, allowing ckBTC to be converted back into native Bitcoin and sent to any Bitcoin address. The interface includes live fee estimates, auto-filled details for connected wallet users, and real-time status updates throughout the process.
Under the hood, the system relies on ckBTC, which is backed one-to-one by Bitcoin and secured through chain-key cryptography rather than a centralised bridge. Transactions on ICP settle in seconds and carry very low fees, while Bitcoin custody and minting logic remain decentralised. Supporters argue this model reduces many of the risks associated with wrapped assets, though broader adoption will depend on continued reliability and transparency as usage grows.
For now, funnAI describes the integration as an active test, with features still being refined and expanded. If successful, it could offer a clearer picture of how Bitcoin-native functionality can coexist with faster, application-focused blockchains, without forcing users to give up direct control of their BTC.
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