Sui continues to lay the foundation for the Bitcoin DeFi ecosystem in crypto.
The Layer 1 network will support sBTC in the coming months, which is the one-to-one “bitcoin-backed asset” from Stacks, a Bitcoin L2 network.
This integration will enable holders to deploy their BTC into decentralized finance by tapping into Sui’s infrastructure without “relying on centralized custodians.”
Sui Foundation will also operate “a validator on the Stacks network.”
By bringing sBTC to Sui, Bitcoin’s $1.6 trillion in liquidity will gain access to new onchain opportunities “that preserve the asset’s native security while unlocking DeFi use cases like lending, borrowing, and trading.”
Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Lab, the original contributor to Sui said:
“For too long, BTC has been treated as a passive asset. sBTC on Sui means holders can earn yield, participate in DeFi, and stay true to Bitcoin’s trustless ethos—all on Sui, a blockchain built for performance and scale.”
The demand for Bitcoin-based DeFi is said to be “growing rapidly.”
By the end of 2024, Bitcoin DeFi protocols “reached $6.5 billion in total value locked (TVL).”
Bitcoin’s intentionally conservative architecture “has historically limited native DeFi, but layer-2 solutions like Stacks are expanding its utility by enabling smart contracts and decentralized applications without altering Bitcoin’s core protocol.”
With Stacks, Bitcoin holders can put their BTC to work “through lending, swapping, and liquid staking—all secured by the Bitcoin network.”
Meanwhile, layer-1 blockchains such as Sui aim to “offer high throughput and scalability for DeFi and other use cases.”
Sui’s high-performance blockchain supports “a DeFi ecosystem, including decentralized exchanges (DEXs), lending, and liquid staking, powered by its object-based architecture and parallel execution for fast, low-cost transactions.”
With this utility now on Sui, holders can “repurpose their BTC and tap into Sui’s flourishing DeFi ecosystem, known for its fast, low-cost, and high-performance infrastructure.”
Sui’s parallelized execution and object-centric design “based on the Move programming language make it the ideal home for BTC-backed assets.”
Among the top 10 chains by TVL and in the top 6 in monthly DEX volume, Sui’s DeFi ecosystem is growing steadily.
In fact, over 10% of Sui’s total TVL is “in BTC and Bitcoin-derived assets, mere months after BTC bridging and staking became available on the network.”
Muneeb Ali, Founder of Stacks said:
“sBTC is the safest, most decentralized path to making Bitcoin a productive asset. Sui’s DeFi growth and powerful underlying technology make it a natural destination for sBTC. We’re excited to expand BTCfi to a top ecosystem that stands out for its utility and rate of adoption.”
The upcoming sBTC integration builds on Sui’s momentum in Bitcoin DeFi.
Earlier this year, Sui expanded BTCfi partnerships “with Babylon, Lombard Finance, and Cubist, and welcomed SatLayer, a leading Bitcoin restaking platform.”
With sBTC, developers reportedly gain access to Bitcoin liquidity “through a decentralized asset that aligns with Bitcoin’s native principles.”
And Sui’s “high-speed, asset-first” design enables developers to build more composable applications “with rich asset behavior that is all backed by secure infrastructure.”