Bitcoin Runes vs. Ordinals: Similarities & Differences
Jul 24, 2025
Bitcoin's ecosystem has expanded beyond just digital gold. Two innovations now define its application layer: Ordinals and Runes. While both enable new use cases on Bitcoin Layer 1, they serve distinct purposes. This guide compares Runes and Ordinals in-depth and highlights how both can be used as collateral on Liquidium to borrow Bitcoin.
TL;DR: Runes vs. Ordinals
Ordinals let you inscribe unique data (like NFTs) on individual satoshis.
Runes are Bitcoin-native fungible tokens (like ERC-20s on Ethereum).
Both use Bitcoin Layer 1, no bridges or wrappers.
You can borrow BTC using either asset on Liquidium.wtf.
What Are Bitcoin Ordinals?
Ordinals allow users to inscribe arbitrary data (images, text, videos) directly onto individual satoshis, creating unique digital artifacts—essentially, Bitcoin-native NFTs. The process leverages Bitcoin's Taproot upgrade and follows the "Ordinal Theory," assigning sequence numbers to sats based on their mining order.
Think of Ordinals as serial-numbered collectibles stored immutably on Bitcoin. Top collections include Taproot Wizards, Ordinal Maxi Biz (OMB) and Bitcoin Puppets.
What Are Bitcoin Runes?
Runes, created by Casey Rodarmor (who also invented Ordinals), are a new standard for fungible tokens on Bitcoin. Unlike BRC-20 tokens that rely on JSON data and Ordinal inscriptions, Runes are much simpler and more efficient.
Runes are ideal for memecoins, DeFi tokens, and any project needing multiple interchangeable units. They're inscribed and transferred using native Bitcoin transactions and require no off-chain dependencies.
Learn more in our guide: What Are Bitcoin Runes and How Do You Buy Them?
Key Differences Between Runes and Ordinals
Feature | Ordinals | Runes |
Type | Non-fungible (NFT-like) | Fungible (ERC-20-like) |
Use Cases | Art, collectibles, metadata | Tokens, memecoins, DeFi |
Transfer Method | Native BTC transactions | Native BTC transactions |
Creator | Casey Rodarmor | Casey Rodarmor |
Borrowable on Liquidium? | Yes | Yes |
How to Borrow BTC Using Ordinals or Runes on Liquidium
Both Ordinals and Runes can be used as collateral for Bitcoin loans on Liquidium using the Instant Loans feature.
1. Connect Your Wallet
Connect to Liquidium using a supported wallet like Xverse, Unisat, or OKX Wallet.
2. Switch to Instant Loans
In the app, navigate to the "Borrow" page and select "Runes" or "Ordinals". Then toggle to "Instant Loans" in the top-right corner.
3. Select Collateral and Review Offers
Browse your supported Ordinals or Runes. Click on the asset you want to use, review the available instant loan offers, and choose one that fits your terms (LTV, interest, duration).
4. Accept and Receive BTC
Confirm the offer, sign the transaction, and your loan will be executed immediately. BTC is sent straight to your wallet.
More details: How to Use Instant Loans on Liquidium
Use Cases and Benefits
Ordinals: Ideal for high-value digital artifacts. Use to borrow BTC while holding your collectibles.
Runes: Perfect for liquid assets and memecoins.
Benefits of Borrowing on Liquidium
No Need to Sell: Maintain exposure to upside.
Trustless: Non-custodial, secured via PSBTs and DLCs.
High Yields for Lenders: Earn up to 380% APY.
Multi-Asset Support: Ordinals, Runes, BRC-20s.
View the borrowing as a put option: Protect your portfolio.
Risks to Consider
Volatility: Value of collateral can drop.
Default Risk: If you don't repay, you lose your collateral.
Illiquidity: Some assets may have limited offers.
Final Thoughts
Ordinals and Runes both represent Bitcoin's growing creative and financial ecosystem. Whether you're a collector or trader, both assets offer unique utility—and now, new financial power via Bitcoin-native lending.
Use Ordinals or Runes as Collateral to Borrow Bitcoin
Got rare Ordinals or hot Runes? Don't just let them sit—use them to access instant Bitcoin liquidity. With Liquidium, you can borrow BTC without selling your prized assets.
Connect your wallet to Liquidium and borrow Bitcoin against Ordinals and Runes today.
FAQ: Runes vs. Ordinals on Liquidium
Q: Can I use any Rune or Ordinals as collateral?
A: Liquidium supports select collections and tokens. Check the Borrow page to see if your asset is eligible.
Q: What happens if I don't repay my loan?
A: The lender can unlock your collateral. There are no LTV-based liquidations, but defaulting means losing your asset.
Q: Are Instant Loans safe?
A: Yes. Liquidium uses Bitcoin-native PSBTs and DLCs, ensuring non-custodial, secure transactions.
Q: How fast can I get BTC with Instant Loans?
A: Once your transaction is signed and confirmed, funds are transferred instantly.
Q: Do I need a special wallet?
A: You'll need a wallet compatible with Ordinals or Runes, such as Xverse, Unisat, or OKX.