KEY TAKEAWAYS
- Babylon Labs and Lombard Protocol are integrating Bitcoin with the Sui ecosystem to enhance its DeFi capabilities using LBTC as a collateral asset.
- Starting in December, Bitcoin holders can stake BTC via Babylon’s protocol to receive LBTC, facilitating lending, borrowing, and trading on Sui.
- The initiative aims to unlock Bitcoin’s $1.8 trillion liquidity on Sui, leveraging a proven model from Ethereum.
- Web3 security developer Cubist is building the infrastructure to ensure secure and efficient Bitcoin integration into Sui.
Babylon Labs and Lombard Protocol have announced a strategic initiative to integrate Bitcoin with the Sui ecosystem. This collaboration aims to onboard Bitcoin liquidity to Sui, enhancing its decentralized finance (DeFi) ecosystem with LBTC as a collateral asset. The initiative invites Bitcoin holders to leverage their assets through LBTC, the largest liquid staking provider on Babylon.
Starting in December, Bitcoin holders will be able to stake BTC via the Babylon staking protocol and receive LBTC, a liquid staking token from Lombard Protocol, natively minted on Sui. LBTC is set to become a core asset in Sui’s DeFi ecosystem, facilitating lending, borrowing, and trading. This move aims to unlock Bitcoin’s $1.8 trillion USD worth of liquidity on Sui.
Proven Model Expands to Sui
Lombard Protocol has previously demonstrated the potential of Bitcoin liquidity on Ethereum, where its flagship LBTC token surpassed $1 billion in minted assets. Over half of LBTC is actively used in DeFi applications. This successful model is now being introduced to Sui.
In this strategic initiative, Web3 security developer Cubist is building the infrastructure to bring Bitcoin to Sui. Cubist will ensure high levels of security and performance for deposits, minting, staking, and bridging.
Fisher Yu, co-founder and CTO of Babylon Labs, stated, “Babylon builds native use cases for BTC to bring Bitcoin security and liquidity to decentralized systems. We are excited that Sui shares this vision and teams up with us and our collaborators to make this a reality on Sui.”
Enhancing Sui’s DeFi Ecosystem
Bitcoin, with the highest crypto market cap of $1.8 trillion, is limited in on-chain programmability. In contrast, Sui’s strengths lie in its programmability and composability, positioning it as a foundational layer for digital assets.
Jameel Khalfan, Head of Ecosystem Development at Sui Foundation, remarked, “Bringing BTC into Sui is a match made in heaven. Thanks to this collaboration with Babylon, Lombard, and Cubist, users from all blockchain ecosystems can come to Sui to participate in a thriving ecosystem of financial services in which Bitcoin will play a key role.”
Jacob Phillips, Co-Founder of Lombard, added, “We are delighted to bring Bitcoin liquidity to Sui in collaboration with Babylon Labs and Cubist. Bitcoin’s $1.8 trillion market capitalization represents immense untapped potential. Together, we are building a future where Bitcoin holders can fully participate in the next generation of on-chain finance without compromising security or liquidity.”
The Sui DeFi ecosystem is already embracing Bitcoin’s integration. Elliscope Fang, CEO of NAVI, a leading lending protocol on Sui, indicated plans to support LBTC pools on NAVI. Fang stated, “Already the largest liquid staking issuer for Bitcoin, this latest collaboration between Lombard and Cubist shall cultivate a new revolutionary era for Sui and Bitcoin. NAVI is excited to be working with the Babylon Labs, Lombard, and Cubist teams to bring the value of staked Bitcoin to Sui DeFi users.”
The full announcement can be read here.
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