Sui Integrates sBTC to Boost Bitcoin DeFi, TVL Surges 50%
2min read Sui Foundation has announced its plans to integrate sBTC and operate a validator on the Stacks Network. This strategic move aims to position sui as a leading hub for institutional-grade Bitcoin decentralised finance (DeFi). By integrating sBTC, Sui will offer a one-to-one Bitcoin-backed asset, enabling BTC holders to participate in DeFi without relying on centralised custodians. This integration leverages sBTC’s decentralised design from Stacks, a layer-2 solution that brings smart contract functionality to Bitcoin. With sBTC on Sui, holders can deploy their BTC into yield-generating applications while retaining the trustless security native to Bitcoin. Sui’s object-based architecture and parallel transaction processing will provide the high throughput necessary to scale these new BTCfi use cases efficiently.
In 2024, Bitcoin DeFi protocols locked over $6.5 billion of capital, underscoring the growing demand for on-chain BTC utilities. Sui’s total value locked (TVL) has surged by 50% in the past month, reaching $1.8 billion, demonstrating accelerating network adoption. Notably, more than 10% of Sui’s TVL now comes from Bitcoin and Bitcoin-derived assets, signalling strong traction for BTC integrations. Besides Bitcoin and Bitcoin-derived assets, stablecoin inflows into Sui hit an all-time high of $888 million as of May 1, reinforcing the network’s expanding liquidity pool. On-chain data shows nearly 29% of Ethereum outflows bridged through Wormhole, which recently partnered with Mercado Bitcoin, have flowed into Sui over the past year. These metrics highlight Sui’s growing role as a scalable execution layer for diverse DeFi applications.
Sui Foundation’s operation of a Stacks validator will deepen its collaboration with the Bitcoin ecosystem at the protocol level. This validator participation underlines Sui’s commitment to supporting Bitcoin’s core security while enabling new financial primitives. “For too long, BTC has been treated as a passive asset; sBTC on Sui means holders can earn yield, participate in DeFi, and stay true to Bitcoin’s trustless ethos—all on Sui, a blockchain built for performance and scale,” said Adeniyi Abiodun, co-founder of Mysten Labs. Institutional interest is further evidenced by Grayscale’s launch of SUI Trust, which grants accredited investors exposure to Sui tokens. A partnership with xPortal and xMoney has enabled SUI usage across Europe via a Mastercard-enabled virtual card, broadening on-ramp options. Earlier this year, Sui partnered with Babylon, Lombard Finance, and Cubist to expand its BTCfi offerings and developer ecosystem. SatLayer, a leading Bitcoin restaking platform, has also joined forces with Sui to enhance liquidity and security for BTC assets. These collaborations underscore Sui’s strategy of fostering a vibrant network of institutional and developer partners.
With access to Bitcoin’s $1.6 trillion in dormant capital, sBTC on Sui could channel significant liquidity into high-performance DeFi infrastructure. Developers on Sui will gain access to BTC liquidity through a decentralised asset that aligns with Bitcoin’s core principles. Sui’s Move-based programming environment and asset-first design will enable more composable and feature-rich DeFi applications. Muneeb Ali, founder of Stacks, emphasised that “sBTC is the safest, most decentralised path to making Bitcoin a productive asset,” and praised Sui’s technology and adoption. As Sui continues to rank among the top 10 chains by TVL and top 6 in monthly DEX volume, its DeFi ecosystem is poised for further growth. By combining sBTC’s decentralised custody model with Sui’s scalable execution layer, institutional and retail participants alike can unlock new BTCfi opportunities. This integration marks a significant milestone in Sui’s roadmap to support the complete Bitcoin DeFi stack. With sBTC live on Sui in the coming months, the network stands ready to redefine how Bitcoin is utilised in decentralised finance. Financial institutions and DeFi developers will be watching closely as Sui advances its infrastructure to meet the demands of a maturing Bitcoin DeFi market.
