Sui is taking a significant step into the BTC staking space by partnering with Babylon Labs and Lombard Protocol and introducing a liquid staking token (LBTC) in the DeFi ecosystem. This partnership aims to unlock a $1.8 trillion BTC potential by combining Bitcoin’s liquidity with Sui’s Layer-1 programmability. Along with Bitcoin staking, Sui is also strengthening the ecosystem with Franklin Templeton partnerships and DePIN games.
The Sui Foundation has announced a partnership with Babylon Labs, Lombard Protocol, and Cubist to integrate Bitcoin into the Sui ecosystem. The collaboration will bring programmability to Bitcoin and aim to make Bitcoin’s $1.8 trillion liquidity accessible to decentralized finance (DeFi). Thanks to its high-performance Layer-1 (L1) blockchain, Bitcoin’s potential on Sui will be better utilized.
This development represents a major step forward for Bitcoin holders and the blockchain community. Bitcoin’s security and liquidity, combined with Sui’s programmability, could reshape how digital assets interact in decentralized systems. With the staking process set to begin in December, Bitcoin holders will be able to stake their BTC via the Babylon protocol and in return receive LBTC tokens minted by the Lombard Protocol on Sui.
LBTC plays a key role in Ethereum’s DeFi ecosystem and is actively used in lending, borrowing, and trading applications with over $1 billion in minted assets. This initiative aims to make LBTC a core asset of the DeFi ecosystem by scaling it similarly on Sui. Users will be able to stake their BTC and unlock its value without losing security or liquidity.
“Bringing BTC to Sui is a perfect match. Through this collaboration, users from all blockchain ecosystems can come to Sui to participate in the evolving financial ecosystem in which Bitcoin will play a significant role,” said Jameel Khalfan, Head of Ecosystem Development at Sui Foundation.
Cubist will facilitate integration with a robust framework for deposits, staking, minting, and bridging. Babylon Labs and Lombard have already proven the power of Bitcoin liquidity on Ethereum and are now bringing that success to Sui. “We are building programmable Bitcoin use cases to bring Bitcoin security and liquidity to decentralized systems, and we are excited to do this on Sui,” said Fisher Yu, Co-Founder of Babylon Labs.
This integration aligns perfectly with Sui’s mission to increase the utility of digital assets and combines Bitcoin’s unparalleled liquidity with Sui’s programmability. This has the potential to increase adoption rates and make the Sui ecosystem attractive to developers, users, and institutional players.
The Sui ecosystem has seen significant progress with recent strategic partnerships, including a partnership with global investment firm Franklin Templeton focused on exploring blockchain-based solutions for financial markets. This partnership reflects Sui’s commitment to combining traditional finance (TradFi) with blockchain technology. Additionally, the network’s innovative use cases are gaining attention; for example, Chirp’s first decentralized physical infrastructure (DePIN) game launched on Sui demonstrates the convergence of blockchain technology with real-world applications.
Sui is poised to rapidly grow its ecosystem by tapping into Bitcoin’s vast liquidity. The collaboration with Babylon Labs, Lombard, and Cubist sets a benchmark for interoperability and innovation across blockchain platforms as Sui advances its DeFi offerings. However, Sui’s powering token, SUI, is down nearly 6% since the Tuesday session opened despite this development. SUI is currently trading at $3.22, according to BeInCrypto data.