The Bitcoin re-staking project Babylon Labs today announced a strategic plan in partnership with leading secure Bitcoin infrastructure developers to integrate BTC with Sui and bring Bitcoin liquidity into the Sui ecosystem.
This partnership aims to develop a 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 astounding $1.8 trillion liquidity.
Fisher Yu, co-founder and CTO of Babylon Labs, stated 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 field with extensive experience and proven efficiency. It showcases the strong capabilities of BTC liquidity on Ethereum, with its flagship LBTC token's minted assets exceeding $1 billion, over 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 capitalization of Bitcoin represents immense untapped potential. We are collectively 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 the infrastructure to bring BTC to Sui. It will provide the highest levels of security and performance in key management for 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 harnessing 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 the LBTC pool on the protocol.
NAVI CEO Elliscope Fang stated: 'As the largest liquid staking issuer of 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 staked Bitcoin to Sui DeFi users.'
The advantages and effectiveness of Sui lie in its programmability and composability, making it the primary foundational coordination layer for all digital assets.
