The Sui Foundation announced a partnership with Babylon Labs, Lombard Protocol, and Cubist to integrate Bitcoin into the Sui ecosystem.
This partnership will bring programmable Bitcoin functionality to Sui, harnessing the robustness of the Layer-1 (L1) blockchain to access Bitcoin’s $1.8 trillion in liquidity for DeFi (DeFi). .
Explore the potential of Bitcoin on Sui
This development marks an important turning point for both Bitcoin (BTC) holders and the broader blockchain community. Bitcoin’s security and liquidity, when combined with Sui’s programmability and composability, could redefine how digital assets interact in decentralized systems.
Starting in December, Bitcoin holders will be able to stake their BTC through the Babylon staking protocol. In return, they will receive LBTC, a liquidity staking token that the Lombard protocol natively generates on Sui. LBTC, already a stalwart in Ethereum’s DeFi ecosystem, has surpassed $1 billion in assets created. It is active in lending, borrowing and trading applications.
The initiative aims to replicate and expand this success on Sui, where LBTC will become a key asset in its DeFi ecosystem. By staking BTC, users can unlock its value without sacrificing liquidity or security, in line with the growing trend of integrating Bitcoin into programmable systems.
“Bringing BTC to Sui is the perfect combination. Thanks to this partnership, users from all blockchain ecosystems can come to Sui to participate in a growing financial ecosystem where Bitcoin will play a key role,” Jameel Khalfan, Head of Development Ecosystem at Sui Foundation, said.
Cubist, a new infrastructure provider, will ensure seamless integration with a robust framework for deposits, staking, creation and bridging operations. Babylon Labs and Lombard have demonstrated the power of Bitcoin liquidity on Ethereum, and now this success is being extended to Sui. Fisher Yu, co-founder and CTO of Babylon Labs emphasized their vision by building programmable Bitcoin use cases.
“Babylon builds native use cases for BTC to bring Bitcoin security and liquidity to decentralized systems. We are excited to make this a reality on Sui,” commented Yu.
This integration is fully aligned with Sui’s mission of enhancing the usefulness of digital assets. Combining Bitcoin’s unparalleled liquidity with Sui’s programmability, this partnership has the potential to drive adoption. It can attract developers, users, and organizations to the Sui ecosystem.
The Sui ecosystem is growing
The Sui ecosystem is going far, with key developments solidifying its reputation as a leading blockchain. Among them is a recent strategic partnership with Franklin Templeton, a global investment firm. This partnership will explore blockchain-based solutions for financial markets. This reflects Sui’s commitment to integrating traditional finance (TradFi) with blockchain technology.
Likewise, new use cases for the network have been noticed. TinTucBitcoin reported Chirp has launched the first decentralized physical infrastructure (DePIN) game on Sui, reflecting its versatility. This play-to-earn model combines blockchain technology with real-world applications, enhancing user engagement.
However, while the Sui Foundation’s achievements are commendable, the road has not always been smooth. Recently, Sui experienced a network outage due to a bug that temporarily disrupted operations.
The Foundation acted quickly to resolve the issue, demonstrating its commitment to trustworthiness and transparency. However, this incident is a reminder that even leading blockchain platforms must continually prioritize robustness and scalability.
As Sui taps into Bitcoin’s vast liquidity, its ecosystem is predicted to grow exponentially. Partnering with Babylon Labs, Lombard and Cubist enhance Sui’s DeFi offerings while setting a standard for interoperability and innovation across blockchain platforms.
Despite news of this integration, Sui’s controlling token, SUI, is down nearly 6% since Tuesday’s trading open. Data from TinTucBitcoin shows that SUI is trading at $3.22 at the moment.