Sui Blockchain Welcomes tBTC, Unlocking $500M in Bitcoin Liquidity

The Sui blockchain, known for its rapid transaction capabilities and focus on decentralized finance (DeFi), has announced the integration of tBTC, a decentralized and trust-minimized Bitcoin asset. According to Sui Foundation, this partnership with the Threshold Network will bring over $500 million in Bitcoin liquidity to the Sui ecosystem.

Enhancing Bitcoin Utility on Sui

This integration aims to merge Bitcoin's foundational principles with Sui's high-speed, composable environment, unlocking new opportunities for Bitcoin holders to engage in DeFi activities. The introduction of tBTC will allow users to leverage their Bitcoin through various DeFi protocols on Sui, facilitating instant settlement and low transaction fees.

Threshold Network, the team behind tBTC, has designed the protocol to maintain Bitcoin’s security model while expanding its utility in decentralized finance. By launching on Sui, tBTC will be fully operational across several Sui-native protocols, including Bluefin, Bucket, AlphaLend, and AlphaFi. These platforms will enable trading, lending, borrowing, and yield strategies, significantly enhancing capital efficiency for Bitcoin holders.

Expanding Access and Adoption

Sui is set to become the first non-Ethereum Virtual Machine (EVM) chain to support direct minting of tBTC, broadening accessibility and reinforcing its position as a leading destination for Bitcoin liquidity. The integration will allow users to trade tBTC pairs on Bluefin, utilize it as collateral on Bucket, and access advanced DeFi strategies through AlphaFi’s auto-looping vaults.

Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Labs, emphasized the significance of this integration, stating, “tBTC is expected to bring a massive amount of Bitcoin liquidity to Sui, creating a bridge that truly matters—not just for institutions but for everyday people who love Bitcoin.”

Growth of BTCfi on Sui

The introduction of tBTC marks a pivotal moment for the growth of Bitcoin DeFi (BTCfi) on Sui. Since February, the platform has seen nearly 600 BTC bridged into its ecosystem, with BTC-backed assets constituting over 10% of Sui’s total value locked (TVL). This trend underscores the increasing demand for BTCfi products that offer unique integrations and DeFi opportunities.

Sui’s infrastructure, capable of supporting over 297,000 transactions per second with sub-second finality, is well-suited for developing fast, secure financial applications. Callan “Sap” Sarre, Co-founder at Threshold Labs, noted, “With tBTC coming soon on Sui, we’re combining the security of threshold cryptography with a high-throughput network to create a new standard for Bitcoin utility.”

The integration of tBTC is poised to transform Bitcoin from a passive asset into an active participant in the DeFi space, further enhancing its utility and accessibility for users globally.