The Bitcoin DeFi ecosystem just got a major boost — Sui, a rising Layer-1 blockchain, has announced plans to support Stacks’ sBTC, a BTC-backed asset that mirrors Bitcoin 1:1. This move could open the floodgates for billions in Bitcoin liquidity to flow into decentralized finance (DeFi) through Sui’s powerful infrastructure.
Turning Idle Bitcoin Into Active Capital
For Bitcoin holders, this is big news. Until now, using BTC in DeFi meant compromising on decentralization or relying on custodians. With sBTC, that’s no longer the case. Stacks’ solution allows users to “repurpose” their Bitcoin without giving up control — and soon, they’ll be able to do it directly on the Sui network.
The integration will let users lend, borrow, stake, and trade with BTC on Sui’s DeFi platforms — all without needing centralized intermediaries. It’s a major step toward making Bitcoin a productive asset in the crypto economy.
Sui Stakes a Claim in the Bitcoin DeFi Boom
Sui isn’t just adding sBTC support — the Sui Foundation will also become a validator on the Stacks network, strengthening the cross-chain relationship. According to the team, this collaboration taps into Bitcoin’s $1.6 trillion market cap while maintaining its core security.
Developers will benefit too. With sBTC on Sui, builders can access Bitcoin liquidity and create more complex DeFi applications using Sui’s object-oriented programming model and high-speed parallel processing.
The partnership builds on Sui’s previous moves into the Bitcoin DeFi (BTCfi) space, including collaborations with Babylon, Lombard Finance, Cubist, and SatLayer.
Bitcoin DeFi Is Gaining Serious Momentum
BTCfi is already becoming a force in the crypto world. By the end of 2024, the total value locked (TVL) in Bitcoin DeFi hit $6.5 billion, and it currently stands at $5.84 billion, according to DeFiLlama.
Sui believes it’s well-positioned to lead the next phase of this growth. Thanks to its fast execution and Move-based architecture, the network is seen as an ideal home for Bitcoin-backed assets. More than 10% of Sui’s total TVL now comes from BTC or BTC-derived tokens — and that’s before sBTC even arrives.
A Safe and Decentralized Path for Bitcoin Utility
Stacks founder Muneeb Ali praised the integration, calling sBTC “the safest, most decentralized path to making Bitcoin a productive asset.” He also noted that Sui’s DeFi expansion and technology make it a natural partner in this mission.
With this integration, Sui is making a clear statement: it wants to be the go-to destination for Bitcoin holders looking to enter DeFi — safely, securely, and without sacrificing the core principles of decentralization.
