The Bitcoin re-staking project Babylon Labs and leading secure Bitcoin infrastructure developers today announced a strategic plan to integrate BTC with Sui and bring Bitcoin liquidity into the Sui ecosystem.
The partnership aims to develop the decentralized finance (DeFi) ecosystem by using LBTC as collateral and is expected to attract BTC holders to better utilize their Bitcoin through LBTC (the largest liquid staking provider on Babylon).
Unlocking $1.8 trillion in assets
According to the plan, Bitcoin holders will be able to stake BTC through the Babylon staking protocol and receive LBTC natively minted on Sui before December. LBTC will become the core asset of the Sui DeFi ecosystem, enabling lending and trading to unlock Bitcoin's astonishing $1.8 trillion liquidity.
Fisher Yu, co-founder and CTO of Babylon Labs, said in a press release shared with (International Business Times): "Babylon builds native use cases for BTC, bringing the security and liquidity of Bitcoin into decentralized systems. We are excited that Sui shares this vision with us and collaborates with us and our partners to make it a reality on Sui."
Lombard enters this space with extensive experience and proven efficiency. It has demonstrated the powerful capability of BTC liquidity on Ethereum, with over $1 billion in minted assets for its flagship LBTC token, more than half of which is active in DeFi applications. This validated model will be introduced to Sui.
Jacob Phillips, co-founder of Lombard, stated: "The $1.8 trillion market cap of Bitcoin represents enormous untapped potential. We are jointly building a future that enables Bitcoin holders to fully engage in next-generation on-chain finance without compromising security or liquidity."
On the other hand, Cubist is building infrastructure to bring BTC to Sui. It will provide top-level security and performance for key management to enable efficient deposits, minting, staking, and bridging.
Jameel Khalfan, head of ecosystem development at the Sui Foundation, stated: "Bringing BTC to Sui is a match made in heaven. Thanks to the collaboration with Babylon, Lombard, and Cubist, users from all blockchain ecosystems can come to Sui and participate in a thriving financial services ecosystem where Bitcoin will play a role."
Bringing value to Sui's DeFi space
There has been a growing interest in utilizing the power of BTC within the Sui DeFi ecosystem. NAVI, one of the leading lending protocols on Sui, has expressed plans to collaborate with Lombard to support LBTC pools on the protocol.
Elliscope Fang, CEO of NAVI, stated: "As the largest liquid staking issuer for Bitcoin, the latest collaboration between Lombard and Cubist will foster a new revolutionary era for Sui and Bitcoin. NAVI is excited to work with Babylon Labs, Lombard, and the Cubist team to bring the value of staking Bitcoin to Sui DeFi users."
Sui's advantages and effectiveness lie in its programmability and composability, making it the primary foundational coordination layer for all digital assets.
