Sui, the fast-growing Layer 1 network, is preparing for one of its most significant integrations of the year. Mysten Labs, the team behind Sui, announced in a press release their plans to integrate sBTC, a Bitcoin-backed asset on the Stacks network.
sBTC is fully backed by Bitcoin and has a market capitalization of over $94 billion. One sBTC is redeemable for 1 Bitcoin, just as one USDT is redeemable for $1. Its main benefit is that it is programmable, making it possible to interact with smart contracts and other players in decentralized finance (DeFi).
Sui plans to integrate sBTC in the coming months as it aims to become a significant player in Bitcoin DeFi. Ultimately, it hopes to contribute to an industry projected to grow over time.
Indeed, data shows that Bitcoin-based protocols have become large players in the decentralized finance industry. DeFi Llama data shows that Bitcoin has a total value locked (TVL) of over $9.68 billion. Networks like Babylon Protocol, Lombard Finance, Solv Protocol, and Threshold Network lead this growth. In a note, Muneeb Ali, Stacks founder, said:
“sBTC is the safest, most decentralized path to making Bitcoin a productive asset. Sui’s DeFi growth and powerful underlying technology make it a natural destination for sBTC. We’re excited to expand BTCfi to a top ecosystem that stands out for its utility and rate of adoption.”
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Stacks aims to capitalize on sBTC’s growing ecosystem through its partnership with Sui. Launched in 2023, it has emerged as the 9th largest chain in the crypto industry, boasting over $2.5 billion in assets and $889 million in stablecoins. Notably, more than 10% of Sui’s total value locked (TVL) is comprised of Bitcoin.
Decentralized exchange protocols, such as Cetus, Kriya, Momentum, and Bluefin, have processed over $3.6 billion in transactions in the past week and $11.1 billion over the past month. As such, Stacks hopes that sBTC will become a major player in this ecosystem.
Other chains are also working to become large players in the Bitcoin DeFi industry. Cardano is notably ambitious, working to bring Bitcoin on-chain through zero-knowledge proofs.
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