Bitcoin News Today: Threshold Network Launches tBTC on Sui to Boost DeFi Utility

Threshold Network has officially launched tBTC on the Sui blockchain, marking a major milestone in the evolution of Bitcoin’s role within decentralized finance (DeFi). tBTC, which is backed by real Bitcoin and secured through advanced cryptography, now offers users a trustless and transparent way to leverage Bitcoin across DeFi protocols on Sui. This development is part of a broader initiative to expand Bitcoin’s utility beyond its traditional role as a store of value [1].

The launch of tBTC on Sui is a significant step toward integrating native Bitcoin into on-chain financial systems. Unlike wrapped tokens that rely on centralized custodians, tBTC utilizes a decentralized model where Bitcoin is secured by a network of signers, ensuring that the token remains fully collateralized and verifiable [1]. This approach not only enhances security but also aligns with the principles of decentralization and transparency that underpin the DeFi movement.

Sui’s BTCfi Vaults are at the core of this transformation. These vaults allow users to engage in lending, staking, and leveraged trading using Bitcoin directly, without the need to convert it into other tokens. The Sui ecosystem now supports multiple Bitcoin-backed tokens, including wBTC, LBTC, tBTC, WBTC, xBTC, and stBTC, offering users a variety of trust models and financial strategies [1].

Platforms such as Cetus, Aftermath, and Magma are already enabling users to execute limit orders, dollar-cost averaging strategies, and liquidity provision with minimal slippage. More advanced DeFi platforms like Bluefin and Typus are offering perpetual and options markets, where BTC-backed assets serve as collateral for structured products. For instance, traders can now deposit xBTC in Typus to earn options premiums, while Bluefin supports leveraged positions on wBTC and tBTC [1].

Lending protocols such as AlphaLend, Bucket Protocol, and SuiLend are further expanding Bitcoin’s utility by accepting native BTC-backed assets as collateral. Additionally, auto-compounding vaults from Kai Finance and Navi, alongside yield-optimizing strategies from Lotus Finance and Haedal, are helping users maximize returns on their Bitcoin holdings. Metastable has also introduced a novel staking model where users mint and stake mBTC to earn mPoints, encouraging long-term participation in the ecosystem [1].

One of the key enablers of this growing DeFi landscape is DeepBook, Sui’s on-chain central limit order book. By facilitating shared liquidity across protocols, DeepBook ensures clear price discovery and prevents liquidity fragmentation. This infrastructure allows Bitcoin to power complex financial strategies on-chain without the need for off-chain intermediaries. Developers can now build new payment rails and yield products on a reliable layer, while traders and liquidity providers gain a versatile toolkit for Bitcoin finance [1].

The launch of tBTC has coincided with a surge in Sui’s network activity. Data shows that SUI’s network activity has grown by 145% in the past month, reflecting rapid adoption of the blockchain’s smart contract and DeFi infrastructure [1]. Institutional interest is also on the rise, with corporate investments in SUI and Binance Coin surpassing $1 billion. For example, Mill City, a specialty finance firm, allocated $450 million to SUI as part of its corporate treasury strategy [1].

From a price perspective, SUI is currently trading at $3.72, having gained 34% this month. The token recently tested $4.30 resistance, with a potential breakout expected to push the price toward $4.80–$5.00. However, a drop below $3.50 could trigger a pullback to $3.20. Technical indicators remain bullish, with RSI signaling balanced momentum and key support levels intact. The recent consolidation phase is seen as a potential accumulation period ahead of an upward move [1].

Overall, the launch of tBTC on Sui represents a pivotal moment for DeFi. By bridging the gap between Bitcoin’s role as a store of value and its potential as a programmable asset, Sui is expanding the scope of on-chain financial systems. As more protocols adopt native Bitcoin integration, the DeFi landscape is expected to become more inclusive, efficient, and accessible to a broader range of users [1].

Source: [1] Yield Farming with Bitcoin: How Sui’s BTCfi Vaults Are Changing DeFi (https://coinmarketcap.com/community/articles/688bd491c2de366c61fbeed3/)