Sui Integrates sBTC and Supports Stacks Network for Institutional-Grade Bitcoin DeFi
Sui is set to integrate sBTC and support the Stacks network, positioning Sui as a leading hub for institutional-grade Bitcoin decentralized finance.
In a recent announcement on May 1, the Sui Foundation revealed its plans to integrate sBTC and extend support to the Stacks (STX) network, thereby enhancing its capabilities in Bitcoin (BTC) DeFi. sBTC, a Bitcoin-backed asset created by Stacks, operates as a layer-2 solution for Bitcoin and enables users to engage in DeFi activities without the need for centralized custodians.
As part of this integration, Sui (SUI) will also operate a validator node on the Stacks network. This strategic move aims to unlock various DeFi opportunities such as lending, borrowing, and trading for BTC holders on a high-performance blockchain designed for scalability.
“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.”
— Adeniyi Abiodun, Mysten Labs co-founder
With the current total value locked in Bitcoin DeFi protocols exceeding $6.5 billion, the demand for BTC financial instruments is on the rise. Sui’s robust infrastructure combined with sBTC’s decentralized approach caters to this growing demand effectively. Its innovative object-based architecture and parallel transaction processing make it an ideal platform for developing DeFi applications.
Amidst the escalating DeFi activity and increased adoption of BTC, Sui has witnessed significant growth. The platform’s total value locked has surged by 50% in the past month, reaching $1.8 billion. Furthermore, over 10% of the network’s total value locked now comprises BTC and Bitcoin-related assets.
Recent data from DeFiLlama indicates that stablecoin inflows hit a record high of $888 million as of May 1. On-chain analysis by Torero Romero reveals that nearly 29% of Ethereum outflows bridged through Wormhole (W) over the past year have flowed into Sui.
Notably, institutional interest in Sui is gaining traction. Grayscale has introduced the SUI Trust to provide accredited investors with exposure to the ecosystem. Additionally, through partnerships with xPortal and xMoney, SUI is now accessible across Europe via a Mastercard-enabled virtual card.
The integration of sBTC on Sui marks a significant milestone, potentially bringing Bitcoin’s substantial $1.6 trillion dormant capital into a high-performance DeFi ecosystem. This strategic move underscores Sui’s commitment to providing institutional-grade Bitcoin DeFi solutions and fostering innovation in the blockchain space.