The Sui Foundation has announced a partnership with Babylon Labs, Lombard Protocol, and Cubist to integrate Bitcoin into the Sui ecosystem.
This collaboration will bring programmable Bitcoin functionality to Sui and leverage its high-performance Layer-1 (L1) blockchain to unlock Bitcoin’s $1.8 trillion liquidity for decentralized finance (DeFi).
Unlocking the potential of Bitcoin in Sui
The announcement marks an important moment for both Bitcoin (BTC) holders and the broader blockchain community. Bitcoin’s security and liquidity, combined with Sui’s programmability and composability, could redefine how digital assets interact within 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 liquid staking token that Lombard Protocol issues natively on Sui. LBTC, already a pillar of Ethereum’s DeFi ecosystem, has surpassed $1 billion in issued assets. It is actively used in lending, borrowing, and trading applications.
This initiative aims to replicate and scale this success on Sui, where LBTC will become a core asset in its DeFi ecosystem. By staking their BTC, users can unlock its value without sacrificing liquidity or security. This is in line with the growing trend of integrating Bitcoin into programmable ecosystems.
Bringing BTC to Sui is a perfect fit. Thanks to this collaboration, users from all blockchain ecosystems can come to Sui to participate in a growing financial ecosystem in which Bitcoin will play a key role, said Jameel Khalfan, Head of Ecosystem Development at Sui Foundation.
Cubist, a new infrastructure provider, will ensure seamless integration with a robust framework for deposits, staking, issuance, and bridging. Additionally, Babylon Labs and Lombard have already demonstrated the power of Bitcoin liquidity on Ethereum, and now this success is being extended to Sui. By building programmable use cases for Bitcoin, Babylon Labs co-founder and CTO Fisher Yu emphasized their vision.
“Babylon builds native use cases for BTC to bring Bitcoin security and liquidity to decentralized systems. We are excited to make this a reality at Sui,” Yu commented.
Furthermore, the integration is perfectly aligned with the blockchain’s mission to increase the utility of digital assets. By combining Bitcoin’s unparalleled liquidity with Sui’s programmability, this partnership has the potential to drive adoption. It can attract developers, users, and institutional players to the network’s ecosystem.
The growing Sui ecosystem
Sui’s ecosystem is moving forward, with significant developments solidifying its reputation as a premier blockchain. Among these is its recent strategic partnership with Franklin Templeton, a global investment firm. In addition, the partnership will explore blockchain-based solutions for financial markets. This collaboration reflects Sui’s commitment to integrating traditional finance (TradFi) with blockchain technology.
Similarly, the network’s new use cases have gained prominence. BeInCrypto reported that Chirp 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, increasing user engagement.
However, while the Sui Foundation’s achievements are commendable, the path has not been without obstacles. Recently, Sui experienced a network outage caused by a bug that temporarily halted operations.
The foundation acted quickly to resolve the issue, demonstrating its commitment to reliability and transparency. However, this incident serves as a reminder that even leading blockchain platforms must continually prioritize robustness and scalability.
As Sui leverages Bitcoin’s vast liquidity, its ecosystem is poised for exponential growth. The collaboration with Babylon Labs, Lombard, and Cubist enhances Sui’s DeFi offerings while setting a standard for interoperability and innovation on blockchain platforms.
SUI Price Performance. Source: BeInCrypto
However, despite the news of this integration, the SUI token, which powers Sui, has fallen nearly 6% since the opening of Tuesday’s session (26). Data from BeInCrypto shows that SUI is trading at $3.22 at the time of this report.
The article Sui announces partnerships to integrate Bitcoin staking appeared first on BeInCrypto Brasil.
